If you are interested in selling or leasing your oil, gas, or other mineral rights in Borden County, you want to make sure you get the best possible price. It can be difficult to ensure you are getting the best price without enlisting the help of an experienced mineral rights broker.
You are going to want to be extremely cautious if you are approached by anybody with an offer to purchase your mineral rights. You should, by rule, never accept anybody’s first offer, even if it seems generous. Be wary of anybody asking you to sign an option agreement, as this is usually done to sell your mineral rights to another buyer willing to pay more than what you are being paid. Another common trick is being told to deposit a check, with a promise to discuss the sale of your rights later, which effectively commits you to the sale of your rights with no ability to change your mind.
One of the best ways for you to avoid these missteps and successfully sell your mineral rights could be through a mineral rights auction. This method allows you to have multiple serious buyers make competitive bids for your rights, ensuring you get at least what you ask for – and possibly far more.
The Mineral Auction helps landowners in Borden County and many other communities in Texas. We can help you avoid unscrupulous buyers and make sure you are only getting qualified offers. We have been helping people all over Texas since 2008 and will make sure that you are not the victim of any scheme. We can begin to get your rights in front of serious bidders as soon as you call (512) 698-2802 or contact us online to set up a free consultation.
Texas Mineral Rights Laws
Texas Property Tax Code § 1.04(2)(f) establishes that mineral interests are real property. State law also provides that a taxing unit’s appraised fair market value determines its taxes. Texas Property Tax Code § 11.146(a) does provide an exemption from taxation of a mineral interest a person owns when it has a taxable value of less than $500. State law also establishes that the exemption will apply to every individual taxing unit that a person has a mineral interest in. The mineral interests will be aggregated to determine their value.
Your mineral interests become taxable on January 1 of the year following initial production of the unit, with the first tax bill for interest needing to be sent in October of the same year. The county appraisal district appraises property for property tax purposes for every taxing unit and also determines the value of the interests, the existence of taxable gas units, and the names and addresses of the owners of interests in those units, as well any exemptions that apply.
Borden County Appraisal District
The duties of the Borden County Appraisal District are to determine the market value of property and administer exemptions and special evaluations authorized by the state or local entities. After the Appraisal District completes and certifies the appraisals, the Borden County Tax Assessor-Collector’s office bills and collects taxes.
The Borden Appraisal District is located at:
Borden County Appraisal District
120 E. Wilbourn Ave.
Gail, TX 79738
Your mineral interest is a completely separate issue that has no bearing on the value of your home. Mineral interests are an interest in only a portion of an underground gas reservoir typically extending much further beyond the boundaries of a home’s lot. Gas units often have more than one well. Each gas well will be considered its own separate property. Interest in a well is its own separate property tax account, so each interest will involve a separate tax bill.
Railroad Commission of Texas
The Railroad Commission (RRC) of Texas is the state agency that regulates the natural gas industry, pipeline transporters, natural gas and hazardous liquid pipeline industry, natural gas utilities, coal and uranium surface mining operations, and the liquefied petroleum gas or liquid petroleum gas (LP-gas) industry.
The main office for the RRC is in Austin, but the agency has many other locations in Texas dedicated to issues concerning pipeline safety, oil and gas, and alternative fuels.
With regards to oil and gas division district boundaries, Borden County is situated in District 8A. The office location for this district is in Abilene:
3444 North First St.
Abilene, TX 79603
The RRC divides pipeline safety into seven regions, and Borden County is one of the six northernmost counties located in the West Texas region. The RRC pipeline safety office is located at:
10 Desta Dr.
Midland, TX 79704
When it comes to alternative fuels safety, Borden County is in District 1. The alternative fuels safety office is located at:
10 Desta Dr.
Midland, TX 79704
The RRC also has three service audit locations in Austin, Houston, and Fort Worth.
Determining the Value of Your Mineral Interest
State law outlines a specific method for appraising real property interests in oil or gas that must always be used. This method takes into account the future proceeds generated by the sale of the interests. This method involves taking the average price from the oil or gas from the interests for the prior calendar year and multiplying that by a price adjustment factor. When there is no production, the average price will be considered what comparable oil and gas from similar interests were selling for.
An appraisal price is required to mirror the price of comparable leases for all months even when a lease fails to produce for every month of the prior calendar year, no matter what months the lease produced. PPI Index data from 1982 to the most recent calendar year from the U.S. Bureau of Labor Statistics (BLS) determines the pricing of every subsequent year after the future first-year price has been determined. The Texas Comptroller Annual Gas Severance Tax Report and actual purchaser pricing are the sources for pricing.
The Price Adjustment Factor (PAF) is equal to the percentage increase or decrease projected for oil and gas prices for the following calendar year, and is set by the U.S. Energy Information Administration (EIA) in its Annual Energy Outlook. The PAF for the first year price in addition to calculated increases or decreases of pricing after the second through sixth years based on EIA data will be multiplied by your monthly average price for the prior calendar year.
The law requires mineral interests to be reappraised every year based on the prior calendar year’s data. Market value may be unchanged or even increase in value despite a decline in total reserves, possibly because the price per Mcf (M is the Roman numeral for 1,000, and MCF means 1,000 cubic feet) increased.
Contact Auction Mineral Rights Today
It goes without saying that there are a number of very complicated laws at work in the sales of mineral rights, only underscoring the importance of making sure that your own mineral rights sale is properly handled. Do not take any chances with such an important decision.
The Mineral Auction can work to get you a better offer than whatever you already have in hand. We can make sure your mineral rights appear in auctions with the most possible buyers. This is essential because the increase in the number of potential bidders usually translates to a higher selling price.
We will help you understand all of the different mineral rights that you own, what your surface rights are, and what your rights are truly worth. The entire process can be completed with your privacy in mind, so your rights can be sold without disclosing any personal information you do not want to be shared.
You could try selling your mineral rights on your own and very may well talk to a few people, but The Mineral Auction can put your rights in front of hundreds or possibly even thousands of potential buyers. We have the experience needed to negotiate the possible deal, and those less familiar with the laws or important tax considerations can wind up signing very unfavorable deals.
Selling your mineral rights can be one of the best things you can do for yourself and your family. The value of mineral rights is volatile – even if yours are worth a lot now, there is no guarantee that they will still be in the future. Furthermore, the value is locked up and not liquid, meaning that if you suddenly need cash, holding on to your mineral rights won’t help you. Selling your mineral rights can allow you to diversify your portfolio, stay liquid, invest in your retirement or your children, and more.
Whatever reasons you are interested in selling your mineral rights, do not wait to contact The Mineral Auction so you can be sure that you get the best price possible. We sell mineral rights throughout many locations in Texas and across the nation. Call (512) 698-2802 or contact us online to take advantage of a free consultation.