Do you think or know that you have oil, gas, or other mineral rights that you are interested in selling? Now could be the best time to do that, but you will want to make sure that you sell them using the method that is most advantageous to you. Mineral rights auctions are tremendously beneficial to sellers because they allow them to get the highest possible price for their rights. If you are considering selling your mineral rights anywhere in Glasscock County, you should enlist The Mineral Auction to help.
The Mineral Auction assists landowners all over Texas and across the nation with mineral rights sales. We have a network of thousands of interested buyers, and by making them compete with each other, we can ensure that you get the best price. There are many reasons to sell your mineral rights, including lessening your tax burden, seeking additional income, or simply trying to maximize a cash opportunity.
Whatever the reason, you can get the best price possible with the help of The Mineral Auction. Call (512) 698-2802 or contact us online right now to schedule a free consultation.
Texas Mineral Rights Laws
Article VIII.1.b of the Texas Constitution and Texas Property Tax Code § 11.01 provides that all real property within a taxing unit is taxable based on its appraised fair market value. Texas Property Tax Code § 1.04(2)(f) classifies mineral interests as real property, but Texas Property Tax Code § 11.146(a) establishes that a person is entitled to an exemption from taxation of a mineral interest they own when the interest has a taxable value of less than $500. Under Texas Property Tax Code § 11.146(b), this exemption applies to every separate taxing unit in which a person owns a mineral interest, and all mineral interests in each taxing unit will be aggregated to determine value.
Mineral interests will become taxable on January 1 of the year after the first production of the unit, and your first tax bill for interest will have to be sent in October of that same year. The existence of taxable gas units, the names and addresses of the owners of interests in those units, the value of those interests as well any exemptions that apply are all determined by the county appraisal district, which is a political subdivision of the state governed by a board of directors that appraises property for property tax purposes for each taxing unit that imposes property taxes on property in the appraisal district.
Glasscock County Appraisal District
The Glasscock County Appraisal District determines the market value of property and administers exemptions and special evaluations authorized by the state or local entities. The Glasscock County Tax Assessor-Collector’s office bills and collects taxes after the Appraisal District’s completion and certification of the appraisals.
The Glasscock Appraisal District is located at:
Glasscock County Appraisal District
124 Main St.
Garden City, TX 79739
It is important to understand that the value of a mineral interest is not included in the value of your home, and your mineral interest will be completely separate. Keep in mind that a mineral interest is an interest in a portion of the underground gas reservoir that usually extends well beyond the boundaries of a home’s lot, and many gas units involve more than one well. Since every gas well is considered separate property, the interest in each well is a separate property tax account and every interest gets its own tax bill.
Railroad Commission of Texas
A mineral interest is a fractional ownership interest in an underground reservoir, and a unit is identified by the name of the unit and its identification number as assigned by the Railroad Commission (RRC) of Texas. The RRC is the state agency responsible for primary regulatory jurisdiction over the oil and natural gas industry, natural gas utilities, pipeline transporters, natural gas and hazardous liquid pipeline industry, the liquefied petroleum gas or liquid petroleum gas (LP-gas) industry, and coal and uranium surface mining operations.
The RRC has a main office in Austin, but it also has other locations around the state dedicated specifically to oil and gas, pipeline safety, and alternative fuels safety.
As it relates to oil and gas division district boundaries, Glasscock County is situated in District 8. The office location for this district is:
10 Desta Dr.
Midland, TX 79704
The RRC divides pipeline safety into seven regions, and Glasscock County is 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, Glasscock County is in District 3. The alternative fuels safety office is located at:
622 S. Oaks St.
San Angelo, TX 76903
The RRC also has three service audit locations in Houston, Fort Worth, and Austin.
Determining the Value of Your Mineral Interest
Texas Property Tax Code § 23.175 establishes the standard for appraising real property interests, such as oil or gas. Under this code, an appraisal must multiply the average price of the property from the preceding calendar year by a price adjustment factor. If no production occurred in one or more months, the average price will be calculated using the average price from comparable interests. The appraiser is not allowed to change the pricing methodology.
If a lease does not produce for all 12 months of the previous calendar year, the appraisal price used must reflect the price of similar leases for all months, regardless of which months the lease produced. After the future first year price is calculated, subsequent future years’ pricing is based on PPI Index data from 1982 to the most recent calendar year from the U.S. Bureau of Labor Statistics (BLS). The source for pricing is the Texas Comptroller Annual Gas Severance Tax Report and actual purchaser pricing.
This methodology is based on U.S. Energy Information Administration (EIA) data. The PAF is equal to the percentage increase or decrease as established by the EIA in its Annual Energy Outlook.
Mineral interests get reappraised every year by law based on the prior calendar year’s data. The market value can remain the same or increase in value even when total reserves decline. This may happen when the price per Mcf (M is the Roman numeral for 1,000, so MCF means 1,000 cubic feet) increase.
Contact Auction Mineral Rights Today
As you can see, mineral rights can be extremely complicated. If you are interested in selling yours, you will be dealing with a number of important tax considerations, and you must ensure that the math used to determine your fair market value was in compliance with state law.
Do not take any risks in how your mineral rights sale is handled. Let a team of professionals offer their services and help you get the best price possible. The Mineral Auction can make sure that you get a fair and full offer for your mineral rights because our auctions will feature more possible buyers who will ultimately drive up your selling price. In most cases, we are able to help people get far better offers than the ones they were receiving privately before contacting us.
We will take all possible means to protect your privacy in the sale of your mineral rights, so you can feel completely comfortable with all aspects of the auction. We can also set a minimum bid for your auction so you will be sure that you get what you are seeking, at the very least.
While some people may make what seem to be very generous offers for your mineral rights, you should always get a second opinion. Never accept anybody’s first offer without first knowing what else might be out there. Some people may even send you a check and tell you to simply deposit it and they will discuss your mineral rights afterward. This is a complete trap, because the deposit ultimately serves as a way to legally bind you to the sale of your mineral right with no possible way to back out.
Make sure that you know all of your options before selling your mineral rights. The Mineral Auction can help you get a maximum price as soon as you call (512) 698-2802 or contact us online to receive a free consultation. We handle mineral rights auctions in many locations throughout Texas and the rest of the country, so you can feel comfortable placing your trust in us.