Texas law and your mineral estate

Posted on Friday, November 6th, 2015 at 4:08 pm    

Land ownership in Texas is divided between the mineral estate and the surface estate, according to the Railroad Commission of Texas. Considering the widespread development of oil and gas properties in Texas over time, the two estate properties are usually owned by different people. The division happens when the surface estate is sold and the mineral rights are retained by the owners. There are cases in which the owner sells mineral rights but keeps the surface, but it is considered a rare occasion.

Mineral estate is dominant under the Texas law, which generally means that the owner may freely use the surface to access the mineral property, depending on the lease or the deed involved. However, many cities have ordinances that restrict oil and gas activities on the properties within the city’s jurisdiction.

If you are considering selling mineral rights in Texas, our qualified representatives at The Mineral Auction are ready to work on your case and alleviate the burden of finding a trustworthy buyer. Call us now at (512) 698-2802 to learn about our unique approach.


Points to understand when talking about mineral rights

Posted on Friday, October 16th, 2015 at 4:39 pm    

Mineral rights are the right of the owner to utilize any or all of the minerals below the surface of their property.

According to Geology.com, the following are some important notes when dealing with selling or leasing your mineral rights:

  • Seek professional help – The complicated process and transaction that is enveloped in mineral rights involve a large sum of money. If someone has tapped you about selling your mineral rights, you must seek legal help at once. Mineral rights-knowledgeable lawyers will be able to carry your transaction and build your case.
  • Surface owner has rights – The state law provides basic rights for surface owners, although, owners may decide on needing stronger protections for their own discretion.
  • Buyers and sellers must be alert – The owner’s own knowledge of the subject will greatly determine the transaction’s success.

If you are looking to sell or lease your mineral rights, please consult first with our team of attorneys at The Mineral Auction to further understand all aspects of mineral rights process. Call us today at (512) 698-2802.


Oil and gas investor settles with Chesapeake-based natural gas company

Posted on Monday, September 28th, 2015 at 8:37 pm    

Edward Bass, an oil and gas investor from Texas, and Barnett Shale mineral rights owners settled with Chesapeake Operating, Inc., a natural gas production company.

Almost 4,000 acres in Tarrant County and Johnson County are owned by Bass and the other landowners. Chesapeake has been handling some of those properties since 2007. The lawsuit was based on alleged underpaying of gas and oil royalties and a breaching of contract with the owners.

In the lawsuit filed in 2013, Chesapeake Operating Inc. allegedly violated the agreement to sell, from one company to another, natural gas production. The company also allegedly made wrong deductions from royalty payments to hide expenses for production.

Daniel Charest, who represents the landowner plaintiffs, said, “We’re very pleased that this matter has been resolved… We believe the evidence was compelling on behalf of the property owners”.

If you are a mineral rights owner and aim to settle your property or sell your rights, consult with our team of mineral rights brokers at The Mineral Auction. Call (512) 698-2802 for a more in-depth discussion.


September could be a good month for LNG investors

Posted on Thursday, September 3rd, 2015 at 8:00 pm    

The month of September would be a good month to invest in natural gas, as the U.S. Environmental Impact Assessment (EIA) sees a dramatic plunge in the production of natural gas from seven major shale basins across the country after an all-time high several months ago, Business Insider reported on Wednesday, September 2.

In May, the seven major shale basins produced a total of 45.6 billion cubic feet per day. This September, however, the production is projected to drop 1.5%. The decline is partly due to the depletion from existing wells, as well as the lack of new wells being drilled. This decrease in the supply could raise the prices quite a bit, making it possible for the producers to gain profit and drill new wells.

The volatility of the oil and natural gas market makes it more appealing for mineral rights owners to sell their mineral rights rather than lease them. We at The Mineral Auction are here to help you get the best value out of your mineral rights. Get professional advice on selling your mineral rights by calling (512) 698-2802 today.


How fluctuating oil prices drive mergers in the oil and gas industry

Posted on Tuesday, September 1st, 2015 at 6:49 pm    

In a report published by Bloomberg Business late last month, Danish business conglomerate A.P. Moeller-Maersk A/S is eyeing for acquisitions in the North Sea to expand reserves, given that mergers and acquisitions are more cost-efficient nowadays than exploration.

Fluctuating oil prices is the primary reason why oil and natural gas players see takeovers as a better option than expensive explorations. Among the first to bulk up in the U.S. are Houston-based Noble Energy and Rosetta Resources in a buyout worth $2.1 billion. At the start of this year, Hillcrest Resources Ltd. has announced its purchase of Texas-based Gulfsands Petroleum USA. Late last year, Encana Corp. has announced its intent to purchase Athlon Energy in a multi-billion dollar deal.

In today’s volatile energy market, it would be a wise move for mineral rights owners to sell their mineral rights upfront to free themselves from the risks caused by the sector’s ever-changing landscape. To know more about getting the best value out of your mineral rights, seek the help of our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today.


Why people sell their mineral rights: tax savings

Posted on Friday, August 7th, 2015 at 4:04 pm    

More and more property owners find it appealing to sell their mineral rights rather than lease them. Reduced financial risks, liquidity, and today’s natural gas boom are just among the many reasons why people choose to sell their mineral rights upfront. But apart from these, people are also choosing to sell their mineral rights due to tax savings.

Leases are considered regular income. As such, when you lease your mineral rights, any amount you regularly receive will be subjected to tax. However, when you sell your mineral rights straightaway, you could only be subjected to capital gains tax, which is a one-time tax you pay after realizing a profit from the sale of your rights.

Tax savings are just among the many benefits of selling your mineral rights. To learn more about selling your mineral rights in Texas, speak with our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today.


Are you really prepared to lease your mineral rights?

Posted on Wednesday, July 8th, 2015 at 6:54 pm    

If you hold on to your mineral rights by leasing them, you are engaging in a business that has its own unique dangers. The question is, are you really prepared to take on the challenges?

Volatile markets, strict federal and state regulations, and the likelihood of experiencing a dry well are just among the myriad of different risks oil and natural gas players face every day. Fortunately, these companies have the resources to tackle each of these risks without much damaging impact. For instance, oil exploration companies have the capital to effortlessly spread the risk of dry wells over large land areas, sometimes even across several states and countries.

By selling your mineral rights upfront, you are sparing yourself from the possible harm of engaging in a venture that won’t pay off. Speak with our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today to learn more about selling your mineral rights today.


Texas nearly the biggest natural gas producer in the world

Posted on Thursday, June 18th, 2015 at 3:54 pm    

Thanks to the state’s current energy boom, Texas has outranked almost all countries in the world when it comes to natural gas production, The Daily Caller reported on May 29.

With 18.1 billion cubic feet of natural gas being produced every day, Texas falls behind only Russia and the entire United States in terms of natural gas production. A graph released by the American Petroleum Institute also showed that the Lone Star State managed to outplay all member-nations of the Organization of the Petroleum Exporting Countries (OPEC), including Saudi Arabia and Algeria.

Texas as the forefront of natural gas production only means that the best time to get the most out of the energy boom is today. If you are planning to sell your mineral rights, our team of mineral rights brokers at The Mineral Auction has the resources and the experience to help you sell your rights at the best possible price. Call us at (512) 698-2802 today.


Enterprise to buy Reliance and Pioneer’s EFS Midstream

Posted on Wednesday, June 10th, 2015 at 2:19 pm    

Houston-based midstream energy services provider Enterprise Products Partners LP has announced it will purchase the Eagle Ford Shale Midstream system (EFS Midstream) of Dallas-based Reliance Industries Ltd. and Mumbai-based Pioneer Natural Resources Co. for $2.15 billion, Bloomberg Business reported on June 1.

According to the agreement, Enterprise will pay the sellers in two installments. $1.15 billion will be paid upon the deal’s closure, while the remaining $1 billion will be paid 12 months after the closing. EFS Midstream is a provider of services in the petroleum industry’s midstream section, which comprises transportation, storage, and marketing of petroleum products. EFS Midstream is currently operating in the oil-rich Eagle Ford region.

The rising number of petroleum industry players who want to expand their business portfolio indicates how promising the energy sector is today and in the near future. If you are a mineral rights owner in Texas, selling your rights upfront would enable you to benefit from this current energy boom. To learn more about selling your mineral rights, consult with our team of mineral rights broker at The Mineral Auction by calling (512) 698-2802 today.


America’s drilling scene slowly recovering from the bust

Posted on Tuesday, May 26th, 2015 at 2:42 pm    

Although the past months have been rough for the oil and gas industry due to plummeting prices of oil, economists say the country’s oil drilling boom is slowly beginning to come back to life, Bloomberg Business reported on May 9.

The CEO of energy data provider Drillinginfo said the country’s rig count may increase to up to 1,300 if the prices of oil rise above $70 per barrel. The Permian Basin in Texas is projected to be the first area to recover from the bust. This is due to the multi-stacked production zones that allow players to drill oil at varying depths through a single well.

Evidence here and there suggests that the country’s drilling boom is not yet over, and selling your mineral rights upfront would enable you to get the most out of it without having to worry about fluctuating oil prices or the threat of a bust. To learn more about selling your mineral rights, consult with our mineral rights broker at The Mineral Auction by calling (512) 698-2802 today.

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