FAQ: How to Sell Mineral Rights in Texas
Selling mineral rights in Texas can be a bit tricky. There is a lot of misinformation on the internet, and it leads to sellers being taken advantage of by large companies.
Here at Enfield Minerals, we want to make sure that you know all of the facts so that you can craft the best deal possible. Read through to have your questions answered, and then contact us to discuss your options.
What Are Mineral Rights?
Mineral rights are the ability to exploit a determined area for the minerals in the sediment. Mineral rights are not necessarily the same as property rights.
Someone can own the land, but someone can own the ability to excavate the land to harvest precious minerals. This is not just limited to solid minerals, but also liquids like oil or gases like natural gas.
How Do I Know if My Land is Rich in Minerals?
Consider conducting a land survey of your land to determine whether or not your land is rich in minerals, or if there are even mineral-bearing deposits. If there is an ore deposit that is regularly producing a mineral, you have very valuable mineral-rich land.
How Much Are My Mineral Rights Worth?
How much you get paid and the amount of royalties you receive depends on a number of factors. This includes the type of material, whether you’re leasing your property or not, your current location, and the price of oil and gas at the time. It can be quite complicated to factor until someone surveys the land and determines its true value.
How Do I Start the Process of Selling Mineral Rights?
One of the most common ways that people sell mineral rights to their land is called the “Shotgun Approach.” This is where they handle it themselves and post online looking for buyers. This is not recommended.
When you go through a service like Enfield Minerals, we will do the work of weeding out bad or low offers, and we will work with you to find the best deal.
Are There Different Types of Deals?
There are six types of deals for selling mineral rights:
Mineral interest deal: This is where you give the rights to explore, develop, and produce the minerals under a specific acreage of land.
Royalty interest deal: With this deal, you are paid based on extraction, and you do not have to take any of the drilling or excavation costs.
Working interest deal: Similar to a mineral interest deal, but you assume some of the working costs.
Non-participating royalty interest: You lose executive rights but you get interest on the sale of minerals.
Overriding royalty interest: Where you receive interest in sales rather than the minerals themselves.
Non-operating working interest: This is where you do not make executive decisions, you help pay for working costs, but you get tax benefits.
How Long Will I Receive Royalty Checks?
Once again, this largely depends on a few different factors. You’ll get royalty checks as long as your land is still producing the desired mineral or oil. The company doing the extraction can stop production due to finances, oversupply, or if market prices fluctuate. If you lease your mineral rights, you’ll stop being paid once the contract is over.
Visit Enfield Minerals to Learn More
If you have any additional questions about mineral royalties and how you can start getting paid for the minerals on your property, contact our extraction company in Houston, TX, today. The process can be quite complicated if you’ve never gone through it before, so our team of experts is ready and willing to walk you through the entire thing. Call us today or schedule an appointment!