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How Do I Know If I Own Mineral Rights?
Many landowners don’t think to ask who owns the mineral rights to their property until they’ve already made plans based on assumptions. Buying a piece of land might give you ownership of the surface, but that doesn’t always mean you own what lies beneath.
In many cases, mineral rights have already been sold, leased, or reserved by a previous owner, leaving you with land on top but no control over the resources below. Keep reading to learn how to know whether you own the mineral rights on your land.
Key Takeaways
- Check your property deed, consult a title company, or work with a landman to confirm mineral ownership.
- Mineral rights can include mineral, royalty, working, or overriding royalty interests.
- Land ownership doesn’t always include underground minerals. So, consult a broker if a previous owner retained the mineral rights to the land.
How To Find Out Who Owns Mineral Rights
As a land owner, confirming who owns the mineral rights to your land is important. In many cases, past mineral rights transfers or legal agreements may have separated those rights from the surface rights. You might have surface ownership with no mineral rights at all. Knowing the mineral rights owner can protect your interests and potential royalties.
Here's how to find out who owns the mineral rights to your property:
1. Start with Your Property Deed
Your property deed usually says if the mineral rights came with your land or if someone else kept them. You’ll want to check it to confirm.
2. Head to the County Clerk's Office
Visit the county clerk’s office for your land and take your legal property description with you. To find the legal description of your land, check your deed or title insurance policy. Then, review the official county records for your property with the clerk.
3. Read the Mineral Rights Records in Reverse Order
Start with your most recent deed and work backward through previous sales. Examine each document to see if any past owner reserved the mineral rights.
4. Hire a Title Company for Your Mineral Rights Search
Title companies and real estate attorneys can also assist with this process. They’ll review the records and clarify exactly what you do or don’t own.
Types of Mineral Ownership
Once you’ve confirmed that the oil and gas, or other valuable minerals on your land belong to you, the next step is to understand the different types of mineral ownership. Here are four types of mineral property ownership:
- Mineral Interest – These mineral rights refer to a property owner’s rights to the minerals beneath their land. These rights are often documented in property deeds. They decide when this interest is sold or leased, and they may also receive royalty payments from any minerals that are produced.
- Royalty Interest – This type of ownership occurs when mineral rights are leased. If the property owner signs a lease with another party, they retain the right to receive royalty payments from the profits of any mineral production.
- Working Interest – This type of mineral property rights gives the holder responsibility for exploration, drilling, development, and day-to-day operations related to oil and gas production.
- Overriding Royalty Interest – Unlike other forms of mineral rights ownership, this interest doesn’t include rights to the minerals underground. Instead, it entitles the holder to a share of the revenue generated from oil and gas production once it begins.
Tips for Mineral Owners
If you’ve determined that you own the mineral rights to your land, that’s really just the first step. As a mineral owner, managing your rights can be challenging at times. To do it effectively, you need to apply the right strategies to avoid costly mistakes and protect your interests. Here are some tips to help mineral owners maximize profit:
- Keep all documentation related to your mineral rights organized.
- Avoid common mistakes by reviewing agreements carefully.
- Learn the basics of how mineral rights are valued.
- Understand the current market value before making decisions.
- Remember that selling only part of your mineral rights is an option.
- Never accept the first offer without thoroughly studying it and comparing it to others.
- Be cautious with unsolicited offers to sell your mineral rights.
- Seek professional help to protect your interests.
- Treat option agreements as potential red flags.
Determining the Value of Your Mineral Rights
To accurately determine the value of your mineral rights, you'll have to consider the total market value of your mineral property. While there’s no fixed rule, you can estimate the worth of your rights by following these steps:
- Evaluate lease terms by reviewing royalty rates, lease bonus payments, and expiration dates to understand how they affect the value of your rights.
- Evaluate the production potential of your mineral rights by reviewing geological data, past production records, and the performance of nearby wells.
- Estimate how much oil, gas, or other minerals can be recovered from your property by analyzing surveys, engineering reports, and past production data.
- Consider future development and exploration, including technological advancements, as these can influence the income your mineral rights may generate.
You might notice that some of the steps above are simpler than others, but none are truly easy. The good news is that you can work with a mineral rights broker like The Mineral Auction to determine the value of your estate.
Why Sell Mineral Rights?
Deciding to sell your mineral rights is an important choice for property owners to consider. While many factors can influence this decision, below you can find some common reasons why property owners sell their mineral rights:
Liquidity
Selling your mineral, gas, or oil rights can give you quick access to cash. This makes it easier to cover expenses, invest in other opportunities, or plan for retirement. Liquidation lets you receive immediate compensation instead of waiting for royalties.
Simplification
You can sell your mineral, natural gas, or oil rights all at once, rather than waiting for development that may take years. This approach removes uncertainty about when and how much income your rights will generate.
Estate Planning
Mineral rights can add value to your estate, but if they end up in probate or a trust, your family may face delays. Selling them in advance allows your loved ones to benefit without legal complications.
Favorable Tax Savings
Owning mineral rights often comes with tax obligations, such as federal income tax on royalties and county-level property taxes. By selling your rights, you may reduce these burdens and potentially benefit from favorable tax savings.
Protect Your Interests and Sell Your Mineral Rights the Right Way
Selling your oil and gas rights is a major decision, and protecting your interests should come first. Even when you think you know your property, the truth is the rights beneath your land may not always belong to you. You may be a surface owner with limited mineral rights.
If you’ve ever asked yourself who owns my mineral rights, The Mineral Auction can help. As an experienced broker, we can assist you in handling public records, work with most title companies, and guide you through the selling process. We utilize a network of over 7,000 qualified buyers, including private companies and individuals, and we can help you get the best possible offer on your property. You can rely on us for expert guidance throughout the process.
If you’ve confirmed that the mineral rights on your land are yours and you’re ready to sell, work with a broker at The Mineral Auction today.
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We’re located in Austin, TX, and because we have connections to thousands of oil and gas royalties and mineral rights buyers, we know that we can get you the best deal if you are looking to sell your mineral rights, whether you’re located in Texas or anywhere else in the U.S.
The Mineral Auction provided me with an invaluable exit strategy when selling a mineral interest that one of my clients had. I’d recommend them to anyone who has the need to create some liquidity.
Blake is excellent. We have used him in numerous family issues and find him always direct and very helpful. He is incredibly informed and our go-to guy.
Blake and I have worked on several deals together and they have always gone off without a hitch. Both parties leave the table satisfied. Highly recommended!
Blake hit it out of the park! He did everything he said he would do, and then some. He far exceeded our expectations within a day! If you are concerned about paying commission or being restricted to a broker – don’t be. He will max out the value of your minerals. I tried to negotiate with several buyers on my own and didn’t come within the same universe.
Blake Bergstrom helped my family negotiate the sale of our mineral rights for our small ranch outside of San Antonio. I found Blake to be very knowledgable about whole process and took the time to answer all our questions. We were very satisified with the transaction and have already recommended Blake and The Mineral Auction to some our friends. Thanks again.
I have mineral rights to natural gas and Blake was excellent in his advice regarding my situation. Thanks a lot for your help!
