Why Sell Mineral Rights and Royalties? A Few Tips

If you own a land, and you are wondering whether to sell mineral rights on your property, you should make a few considerations before deciding. The entire situation concerning mineral rights is one that has been presented to the forefront of consciousness currently by news companies in the whole […]

If you own a land, and you are wondering whether to sell mineral rights on your property, you should make a few considerations before deciding. The entire situation concerning mineral rights is one that has been presented to the forefront of consciousness currently by news companies in the whole world. Presently geological research companies are being established everywhere, and this alone could be a good reason to sell while the progress is right, you may never get the similar prices for your minerals as you would get now.

 

Selling mineral rights as a process is simple to understand. It depends on companies showing interest in mining or drilling on your land, then preparing an offer to buy the mineral rights. Remember they will not be purchasing your property, only the ownership of the minerals beneath the soil. Besides, you can also decide to sell only a fraction of your minerals. Sell Oil Rights

 

If you have ever had an evaluation of the minerals found in your land and have discovered valuable minerals, you would prefer only to sell say, eighty percent. This would provide you a royalty check for the remaining twenty percent anytime the company makes a profit, though you should be cautious because as time goes by these checks will only reduce and may take several years to start paying out. This is part of the risk you take with mineral rights, but it gives one of the reasons to sell. Sell Gas Rights

 

Lastly, if you have money offer sitting on your table now, it may be a wise decision to sign it. There is no favorable time than now to sell mineral interests as we are at the top in the industry. Negotiations aren’t kind of things drilling companies will often engage into, especially if you own a relatively small interest and as such are best avoided. Take the opportunity which is in front of you, risking on your price is something that rarely results to gain. Mineral Rights

 

Mineral Rights

http://permicoroyalties.com, mineral rights

Minerals

 

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 […]

http://permicoroyalties.com, mineral rights

Minerals

 

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:

 

1.   Ownership

 

2.   Leasing

 

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

Tips to Ensure A Safe Gas and Oil Lease

Property owners in the United States need to protect their mineral rights to have a good source of income. The term “mineral” not only encompasses gas, oil, coal, and its derivatives but also ores, metals, and non-metals. However, property owners gain more wealth from gas and oil royalties than […]

Property owners in the United States need to protect their mineral rights to have a good source of income. The term "mineral" not only encompasses gas, oil, coal, and its derivatives but also ores, metals, and non-metals. However, property owners gain more wealth from gas and oil royalties than other minerals. There are few things to consider before drawing up a lease agreement with the oil and gas company. Here are few important tips to remember before leasing mineral rights to the concerned company: Selling Mineral Rights

Before you take advantage of your gas and oil rights, it would be advisable to conduct a geological analysis of your property. With the help of an expert geologist, you can easily conduct a survey to locate the exact location of the minerals. This will help you ascertain an approximate value of your oil and gas royalties.Sell Oil Rights

Once you have a rough estimate, you can consult an expert oil and gas attorney regarding state and federal laws regulating oil and gas issues. This will help you to draw a correct lease agreement with the oil and gas companies. Make sure you are well aware that your mineral lease rights are transferred on a temporary basis. It is advisable to verify the credentials and experience of the oil and rights company. Sell Gas Rights

Besides gas and oil royalties you will also be entitled to get bonus payment, so better analyze the financial capabilities of the company.

Always seek your attorney’s advice before filling the lease form. The form will mention all about default rentals as well as clauses in terms of extension of the lease period.

Your lease agreement guarantees oil and gas royalties in cash. However, you can opt to receive oil from the firm and market for profits. Most individuals lease their mineral rights for cash; some even go further by selling gas and oil royalties to convert their stream of income into lump sum payment. The procedure is hassle free and assures lump sum cash offers within a few weeks. There are few dedicated companies that provide a quick cash settlement and turnaround on your oil and mineral rights. Mineral Rights

Sell Oil and Gas Royalties and Mineral Rights for Profit

Their owners sell oil and gas royalties, along with mineral rights for a variety of reasons. The first significant reason is to obtain quick cash for handling an emergency situation. The second reason for selling oil and exploration gas royalty is to get rid of these royalties received in […]

Their owners sell oil and gas royalties, along with mineral rights for a variety of reasons. The first significant reason is to obtain quick cash for handling an emergency situation. The second reason for selling oil and exploration gas royalty is to get rid of these royalties received in inheritance. Some people don’t find it easy to manage these estates and thus, sell them to start another business. Liquidation of estates is another reason to sell these royalties. To entertain all these needs, some royalty buyers can be easily found online. Mineral Rights

 

Contact a Good Broker Some of the top buyers of royalties hire the services of brokers to purchase these royalties. Thus, you can also contact a broker dealing in the sale and purchase of these estates. Make sure that the broker is willing to make it a favorable deal for both the parties. Sell Gas Rights

 

Consider the Evaluation Procedure If you want to directly deal with an oil and gas royalty purchaser; you need to first learn about the evaluation procedure employed by the company. The intended buyer needs to follow fair evaluation procedures so that he or she comes up with a fair offer for you. Also, you should also set up a price in your mind by yourself evaluating the market value of the estate.

 

Open to Negotiation It is obvious that most of the royalty buyer wish to make maximum profit out of the deal. However, he or she must be open to negotiation and you should be well-versed in bargaining on offer made by the buyer. You can also contact more than one buyer at one time and compare the offers of each one of them. Sell Oil Rights

 

Finally, you can choose a buyer offering a fast and convenient process of the transaction. Also, consider the mode of payment offered by the buyer, so that you can obtain a hassle-free quick cash payment. Selling Mineral Rights

 

6 Factors That Determine the Value of Your Mineral Rights

Introduction

Selling ones mineral rights requires that one acquires the knowledge of the value of the mineral rights owned to ensure that the maximum possible value is quoted.

 

It is therefore important for mineral rights owners to be aware of the value of those rights which can […]

Introduction


Selling ones mineral rights requires that one acquires the knowledge of the value of the mineral rights owned to ensure that the maximum possible value is quoted.

 

It is therefore important for mineral rights owners to be aware of the value of those rights which can be facilitated by understanding the following factors. Mineral Rights

 

 


Market Participants

 

The pricing of the mineral rights is dependent on the buyers of those rights because different buyers are willing to take different levels of risk. This means that some buyers may be willing to pay a high amount of money on certain mineral rights while others may value the same mineral rights at a lower value.

 

 

Prices Of Oil And Gas


The price of oil and gas has never been constant and keeps fluctuating which affects the value of mineral rights because such rights are significantly dependent on those prices. When the oil and gas prices are high, mineral rights buyers tend to be willing to pay a high amount for the rights. On the other hand, low prices encourage low valuing of the rights, thus buyers are willing to pay low amounts for the rights. Sell Gas Rights

 


Location Of The Minerals


The value of mineral rights depends on where the minerals are situated and the production activities that take place in the area. Rights that are surrounded by wells with high productivity of oil and gas tend to have high value while those surrounded by low productive wells tend to have low value. Sell Oil Rights

 

 

Timing


The value of mineral rights is affected by timing in a significant way because they are affected by the price of oil and gas. The fluctuating nature of oil and gas prices implies that when prices are high, so is the value of mineral rights and vice versa.

 


Nature Of The Rights

 

The value of mineral rights is attached to whether the rights are producing or non-producing. Non-producing rights are those that are untapped and remain in the ground. These are valued lowly compared to producing rights which are those that are producing oil and gas and are in fact being drilled.

 


Size, Type and Demand


Large mineral rights in terms of large deposits have high value compared to small deposits. The type of mineral is also important because the value of minerals differ depending on type. When a mineral has a high demand, buyers are willing to pay more compared to that which has a low demand. Mineral Rights