Delays in Development
As the owner of mineral, gas, or oil rights, you want to begin earning a profit on your property interests as soon as possible. Sometimes, however, there are delays in development. These delays could mean that you don’t see any money for several years.
The Texas mineral rights brokers at The Mineral Auction know how to minimize development delay problems by making smarter leasing and sale decisions. This could mean helping you negotiate delay rentals or assisting you with selling your mineral, gas, or oil rights to interested buyers. Contact us at (512) 698-2802 and let our skilled team of mineral brokers help you sell your mineral rights and avoid the headache of delays in development.
When Should I Contact A Broker?
Hiring a mineral broker is essential regardless of whether you are still considering when to sell your mineral rights or you have already started negotiating with buyers. If you suspect that developers are running out of money, or have other difficulties, you should contact a broker. You shouldn’t have to wait to see royalties because of the mistakes of a developer. A broker will protect your financial interests by introducing you to buyers that that can pay you now.
Why Should I Choose The Mineral Auction?
The brokers at The Mineral Auction have experience helping mineral, gas, and oil rights-holders navigate the problems caused by development delays at various stages. Our team of trained mineral brokers has experience helping people get money for their rights and future royalties. We understand that these delays can lead to significant stress and opportunity costs. Because of this, we can help begin the mineral rights auction process quickly. If you, or someone you know, is worried about delays in development, call our brokers at (512) 698-2802 today.
Types of Development Delays
Any number of issues could lead to delays in development. The people you are doing business with may not be forthcoming about the cause of the delays. However, you have a right to protect your financial interests. This means that you should be aware of common issues that could lead to delay in the development of your mineral interest and could affect your rights to royalties or other payments:
- Insolvency: A mining company or other developer to whom you sold your mineral rights may go bankrupt before beginning the extraction process. A company could also run out of money in the middle of production after extraction. Regardless of the cause of the insolvency, it could mean that you don’t see royalties. Rather than wait around for the developer to crawl out of bankruptcy, you should contact a mineral broker to explore your options.
- Government restrictions: Sometimes even a well-planned and funded extraction process could come to a full stop because of government restrictions. These restrictions take different forms. For example, new laws could restrict where mineral extractions may place. Another issue that could arise is the discovery of an endangered species in a mineral extraction site which triggers provisions of the federal Endangered Species Act. If you’re tired of waiting for royalties due to government restrictions, our mineral brokers will connect you with a network of buyers that will provide more immediate compensation.
- Shut-ins or equipment malfunction: On occasion, construction of extraction tools may not keep up with market demand. This means that by the time a mineral interest is extracted and produced, there may not be enough interested purchasers. When this happens in the oil and gas field, producers may elect to temporarily cease or “shut in” production. If your lease includes shut-in royalty provisions, there’s a possibility of receiving annual payments when production ceases. If you are frustrated by delays in production, contact the brokers at The Mineral Auction to learn more about your options.
- Inattention or abandonment: If production ceases, a lease may be terminated. At that point, you may be able to sell your mineral rights to a new buyer. If you suspect that termination ceased beyond the primary term, you should contact our experienced mineral brokers.
Any of these development delays can cause serious financial issues for you, your business partners, or your family. Contact a mineral broker to discuss your rights and options.
When you encounter delays in development, you should understand all of your rights and options. The brokers at The Mineral Auction can analyze existing leases and other contracts to help you begin receiving the profits you deserve. We will help you negotiate better deals, connect you with our network of reputable buyers, and complete all of the legal requirements for selling your mineral, gas, and oil rights.
Our fees are tied to the price you ultimately receive from buyers. Thus, we will always strive to get you the best possible deal. Call our offices today at (512) 698-2802, by email, or submit a form online to begin the process of profiting from your mineral resources again.