“How do I know how much my mineral rights are worth?”
Click here to learn more about how to value your mineral rights.
Or give us a call and we can help estimate the value for you FOR FREE.
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Mineral rights are the legal rights to the minerals and deposits underneath the surface of a property. This means that the owner of the mineral rights owns the rights to any oil and gas that could exist beneath the surface, whether or not they own the actual surface property. If you own the minerals, you also have the right to access those minerals reasonably which usually allows the mineral owner to access the surface property to mine or drill for the oil, gas, coal, etc.
Yes, you CAN own the mineral rights without owning the surface land. Often times, land owners have sold off mineral rights without selling their land. Others have sold their land but kept the mineral rights. Throughout generations, these interests in the mineral rights have been passed down and split into smaller portions multiple times. Though it is possible to own the mineral rights and the surface land together as one property, the mineral rights have often times been severed and broken down into partial interests over the years.
Like real estate, its all about location. Minerals are usually sold by the acre but can range in price from under a hundred dollars per acre to several thousand per acre depending on the location and the history of oil and gas production in the area. Other factors that contribute to the price or value of mineral rights include whether or not the acres are leased and the terms of the lease.
The problem with owning mineral rights is the uncertainty that goes along with ownership. If the minerals are not currently producing, they are worth far less. This can make it more difficult to sell your minerals since potential buyers will be taking a gamble on whether or not there will be producing oil and gas wells on that property in the future. The truth is, even minerals surrounded by good wells may not be right for drilling and producing oil and gas, since the geology is subject to change. Holding on to your minerals means that you are taking the same gamble.
Click here to learn more about how to value your mineral rights. Or give us a call and we can help estimate the value for you FOR FREE. Click here to contact us for your FREE ESTIMATE.