Midland County

Midland County Mineral Rights For Sale

You may have important oil, gas, or other mineral rights if you are a resident of Midland County, an area of Texas known to have an abundance of these resources. You may be interested in selling or leasing these rights, and chances are good that you can find a buyer. But how do you know that you are getting as much as possible?

A mineral rights auction could be one of the best ways for you to sell your mineral rights. Auctions will allow multiple buyers to offer competitive bids for your rights.

The Mineral Auction assists landowners all over Midland County and several surrounding areas of Texas. When you work with us, you deal only with qualified offers as we can screen out the buyers who do not make serious offers.

You must be very careful if you are contacted by any party expressing an interest in purchasing your mineral rights. While some potential buyers might extend what seem to be generous offers, the truth is that they are usually undervaluing the true value of your rights.

Allow yourself to entertain multiple offers. When you work with The Mineral Auction, we can ensure that every offer you see has been properly vetted.

Try to be aware of some of the most common tricks that are deployed in these cases. Some people may ask you to sign an option agreement, but this usually leads to your mineral rights being sold to another buyer willing to pay more than what you are being paid.

You could also be presented with a check you are told to deposit and your mineral rights will be discussed later. When you deposit the check, it commits you to the sale of your rights at a less than desirable price with no ability to back out.

The Mineral Auction has been helping clients in Midland County and throughout Texas since 2008. Let us discuss your rights with you when you call (512) 698-2802 or contact us online to schedule a free and confidential consultation.

Texas Mineral Rights Laws

Under Texas Property Tax Code § 1.04(2)(f), mineral interests are considered real property and state law also establishes that a taxing unit’s appraised fair market value determines its taxes. An taxation exemption from a mineral interest is provided under Texas Property Tax Code § 11.146(a) when it has a taxable value of less than $500, and the exemption applies to every individual taxing unit that a person has a mineral interest in. Mineral interests are aggregated to determine value.

January 1 of the year after the initial production of the unit is when your mineral interests become taxable, and the first tax bill for interest needs to be sent in October of the same year. The county appraisal district is responsible for property appraisals for property tax purposes for every taxing unit and 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 as any exemptions that apply.

Midland County Appraisal District

The Midland County Appraisal District is responsible for appraising all real and business personal property within Midland County. It appraises property according to the Texas Property Tax Code and the Uniform Standards of Professional Appraisal Practices (USPAP).

The Midland County Appraisal District is also responsible for the fair market appraisal of properties within certain taxing entities. The Midland County Appraisal District is located at:

4631 Andrews Hwy.

Midland, TX 79703-4608

(432) 699-4991

Mineral interests have no bearing on home value, as they are a completely separate issue. Mineral interests represent an interest in just a portion of an underground gas reservoir that extends far beyond the boundaries of a home’s lot.

Many gas units have more than one well. Every gas is considered its own separate property. Interest in a well is its own separate property tax account, and every interest involves separate tax bills.

Railroad Commission of Texas

The Railroad Commission (RRC) of Texas is responsible for regulating:

  • the oil and gas industry
  • natural gas and hazardous liquid pipelines
  • pipeline transporters
  • natural gas utilities
  • liquefied petroleum gas industry
  • coal and uranium surface mining operations

The RRC assigns the name of a unit and its identification number. In a mineral interest, the unit is a fractional ownership interest in an underground reservoir.

Austin is the home of the main RRC office, but several satellite locations exist throughout the state for safety issues concerning pipeline safety, oil and gas, and alternative fuels.

In regard to oil and gas division district boundaries, Midland County is in District 8. The office location address is:

Conoco Building

10 Desta Dr.

5th floor

Midland, TX 79704

(432) 684-5581

Pipeline safety is divided into seven regions with Midland County among the six northeast counties in the West Texas region. The RRC’s pipeline safety office is at the Conoco Building location in Midland as well.

When it comes to alternative fuels safety, Midland County is in District 3. The alternative fuels safety office is also located at the Conoco Building in Midland.

The RRC has three service audit locations in Austin, Houston, and Fort Worth.

Determining the Value of Your Mineral Interest

Under Texas state law, the appraiser cannot change the method used to appraise a real, or fixed, property interest in oil or gas in place that considers future proceeds generated by the sale of oil or gas. The method is required to involve the average price from the oil or gas from the interest for the prior calendar year multiplied by a price adjustment factor. The sum of the monthly average prices is divided by 12 for the average price determination for the previous calendar year. The average price will use what comparable oil and gas from similar interests were selling for if there is no production.

In situations when a lease fails to produce for every month of the previous calendar year, an appraisal price must still mirror the price of comparable leases for all months regardless of what months the lease was produced. After the future first year price has been determined, PPI Index data from 1982 to the most current calendar year from the Bureau of Labor Statistics determines the pricing of each following year. The sources for pricing are the Texas Comptroller Annual Gas Severance Tax Report and actual purchaser pricing.

The U.S. Energy Information Administration (EIA) sets the Price Adjustment Factor (PAF) in its Annual Energy Outlook, and the PAF is equal to the percentage increase or decrease projected for oil and gas prices for the following calendar year. 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, are multiplied by your monthly average price for the prior calendar year.

Mineral interests must be reappraised every year based on the prior calendar year’s data. Even when there is a decline in total reserves, market value may be unchanged or even increase in value possibly because the price per Mcf (M is the Roman numeral for 1,000, and MCF means 1,000 cubic feet) increased.

Contact The Mineral Auction

The sale of your mineral rights is very important, but it can be very complicated. The good news is that you don’t have to figure everything out for yourself. Whatever offer you might have already received, The Mineral Auction will assuredly be able to get you a better one. We can put your rights are in auctions with a high volume of high-quality buyers, usually translating to a much higher selling price for yourself.

The Mineral Auction can identify and help you understand the different mineral rights that you own, what surface rights you have, and the true value of those rights. We can do all of this while respecting your privacy so that your rights may be sold without any of your personal information being disclosed.

Do not think that a single offer for your mineral rights represents your only opportunity to sell your mineral rights. The Mineral Auction will make sure that your rights are put before as many potential buyers as possible.

The Mineral Auction can help you negotiate the best possible deal. People who are not mindful of important laws or other tax considerations may face major consequences by committing to unfavorable deals.

Maybe you are just looking for a way to score some extra money. Maybe you have concerns about your estate plan. The Mineral Auction understands these concerns and can help you achieve your goals.

You will want to contact The Mineral Auction as soon as possible so you can quickly begin exploring the network of buyers that may be available to you. Call (512) 698-2802 or contact us online to schedule a free consultation.

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