Aside gold and other precious metals, mineral are classified amidst precious natural commodities. This reason is not far-fetched as its uses make it very important to man’s activities. From the very simple machine to the complex, complicated industrialize machine all of which depends on the by-product of this minerals.
What is Mineral Right?
When a person owns a property that contain any mineral resources, one needs to get permission from regulated authorities to mine or produce any mineral as they own. This is what is referred to as mineral right. These minerals can be in oil, gas, metal ores, stones, sands etc. Once a person has a mineral right, he/she can sell, lease or donate any of these minerals to anyone or company as wished. Mineral right are also termed “mineral estate” or “mineral interest” and it can be owned by private landowners, private companies, local, state or federal governments, certain times mineral right can be separated to surface property and minerals assets i.e. the surface property can be sold off to prospective buyer while the mineral retained by the initial owner or the mineral can be sold to the buyer while the surface property is retained (this occurs in most cases). Mineral Rights
They are five major elements of mineral right, they are:
1. The right to use the surface as is reasonably as possible to access the minerals
2. The right to convey rights
3. The right to receive bonus
4. The right to receive rentals
5. The right to receive royalties
Also, mineral right can be leased by the owner to any company for further development. Leasing of mineral right involves four components:
3. The Division Order
4. The Royalty Check
Why people invest in mineral right?
Investing in mineral right is one of the wisest investments you can ever think of as they are countless unending demand of mineral resources. Sell Gas Rights
Some reason why you should consider investing in mineral right is:
Viable business investment
Minerals such as oil have revolutionized the business sector in virtually every country. From the days of the great John D Rockefeller, Oil has and will always be viable Tax benefits
A good understanding of the royalty taxes from mineral right would end up making you spend much less on tax. Knowledge of depletion allowance can allow owners deduct up to 15% of the income thereby reducing tax collected. Sell Oil Rights
Less work more money
With your mineral right, you virtually don’t have to do any work, you can lease your mineral right to a company will they do the exploration and development. Selling Mineral Rights