How To Buy Mineral Rights

An upstream oil and gas company is a company in the oil and gas industry. The word, upstream comes from one of three groups that companies in the oil and gas industries are divided into. Upstream oil and gas oil companies are able to take, produce, and identify raw materials. Upstream oil and gas companies have the largest number of mergers, acquisitions, and divestitures. Black Stone Minerals, LP, Apache Corp, and Antare Resources Corp are examples of upstream oil and gas companies. This article will discuss how to buy mineral rights.

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What Are Mineral Rights

Mineral rights are properties rights. They are used to exploit an area for the minerals. Minerals can be in the form of oil, gas, coal, metal ores, stones, and sands. When you’re an owner of mineral rights, you can sell, lease, or donate the minerals. The minerals can be given to a person or company. They can also be owned by private landowners, private companies, and state governments. Local and federal governments can also own mineral rights.

What Kind of Mineral Rights Are Available

There are several types of mineral rights that are commonly used for sale. One type of mineral rights is the mineral interest. Mineral interests refer to non-producing minerals. With mineral interest, there is no oil or wells on properties. As a result, owners don’t receive royalty checks. Mineral interests are calculated by multiplying the mineral’s owner’s undivided interests in the tract by the number of acres in the fact. 

Royalty interest is another type of mineral rights. Royalty interest refers to producing materials that have an active gas or oil well. Royalty interest owners receive royalties on the sales of oil and gas. The sales amount is determined by the owner’s decimal interest in the well. The oil and gas lease on a royalty interest can end at any time. When it ends, royalty interests conclude. 

Mineral interests and royalty interest are another type of mineral rights. With both of these interests, seller can sell both mineral interests. This can be sold with executive rights along with royalty interest. Royalty interest has to be in a producing property with income. Owners can buy the mineral and royalty interest. Oil and gas rights are another type of mineral rights. Oil and gas rights are rights when oil is taken from any property where they are moved. This is called a fugitive resource. However, the right is known as rule of capture. 

How To Buy Mineral Rights

One way to buy mineral rights is to use a solid and reputable auction house. Prices of mineral rights sold are varied widely. Auction houses can sell mineral rights. They can be sold for active and non active properties. By placing the owner’s right on auction in their network of buyers, auction houses take a commission of the mineral right sold. The majority of mineral rights sales are completed online. With private land rights, auction sales of mineral rights are able to bring higher prices to mineral rights owners. Another place where mineral rights can be brought is at government auctions. Government auctions cover mineral rights. These sales can be sold at a public bidding auction on federal and state lands. The mineral rights that are sold on government auctions are given to the highest and acceptable bid. 

Broker deals can also be used to buy mineral rights. One of the most common ways that broker deals can be accessed is through online marketplaces. However, owners should do their research to ensure that the broker deals are legit. Negotiated sales are another place where mineral rights can be brought. In negotiated sales, high priority properties can be sold to a select group of guys. This can occur when buyers don’t want to go public with the sales of mineral rights. The sales will have geophysical, engineering, and other reports available. Tax sales can be used to buy mineral rights. In tax sales, counties can put mineral rights for sales. However, the original owner can redeem the property during a redemption period. The owners can redeem their properties by paying the penalties. Mineral rights can be brought from mineral owners as well. Some mineral interests are repossessed by banks. 

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