Category: Sell Mineral Rights

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3 Things to Remember When Selling Mineral Rights- To Get a Good Deal

http://permicoroyalties.com, sell mineral rights

Owning royalty rights can be very beneficial for you as you can either lease or sell the mineral rights for earning a good amount of money. But you will need to know the 3 things to remember when selling mineral rights so that you can get a good deal. But you will also need to do proper research before selling your mineral rights to investors for ensuring that your rights are protected and you can get enjoy a highly profitable venture and get the right price for the minerals rights. 


The 3 things to remember when selling minerals rights include- the most important thing that you will need to remember is whether you should lease or sell your minerals rights. You will need to opt for a profitable option so that you can enjoy financial freedom and selling your mineral rights will help you get a lump sum amount of money. Another important thing that you
will need to remember is to know the value of mineral rights so that you can get the right amount. Moreover knowing the right value will help you negotiate the amount with the investors and you can also hire a geologist for analyzing and value your rights. sell gas rights

 

This is the best way of getting strong bargaining point so that your mineral rights will not be undervalued by the investor. Finally, you will need to determine the time period within which you will need for selling the mineral rights. If you are in a hurry, you will have to sell your
rights at a lower price and hence you will need to take your time so that you can get a good price. Proper planning and timing is very important for getting a price worth of your mineral rights so that you can get a profitable deal. sell oil rights

 

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Factors to Consider on How to Sell Mineral Rights: What You Obtain and Drop

Today, the phrase "to sell your property rights" is not the same with the statement "to sell your mineral rights." It were the 1900s when both the above and underground spaces of a residential property came under one deed or document. This is partial because the owner of the land might not be interested in the oil beneath, but an oil firm is. Click here.

In the some countries, possession of the lot and everything under the surface may either be singular or separate. In a separate arrangement, you could offer your mineral rights without giving up your rights to the area above the ground. Of course, given that you own the land where the oil company is currently collecting the oil, you profit from the project. Don't forget, however that there are some locations that don't comply with the separate possession arrangement.

Also, it's wise not to jump the gun when thinking about selling your mineral rights to businesses and other interested actors. These are rights you are selling; it indicates that you give up everything and anything that relates to the minerals and oil under your residential property. The new owner of these rights may do whatever he wants with those minerals and oil.

On the other hand, the perk of maintaining surface rights is that you receive a percentage of the profit of the mineral rights owner. This is known as royalty payment; though it may not be as large as the share of the mineral rights owner, it is a hefty figure. The royalty one could have influenced by the set rate the mineral rights owner is willing to pay.

You can determine whether you could make a huge profit from the underground minerals in your residential property via a simple equation. Determine the product of the land area, the average density of the mineral in question, and 1,800 tons (being equal to 1 acre-foot of mineral). It is possible for a 100-acre land with minerals around 7 feet thick to give 1.26 million tons of the mineral involved. However, for underground mining, only half could be gathered for safety reasons. Know more. 

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Why Selling Your Mineral Rights May Be Better Than Leasing

If you are planning to own/lease or if you are unclear about the benefits of selling mineral rights, below are five benefits you need to consider:

1. Selling is more beneficial than leasing
Compared to leasing, industry experts believe that selling is more beneficial for the following reasons:

-Receive 2-5 times the monetary benefit from selling vs. leasing
-Collect cash infusion immediately instead of waiting many years out for production
-Hedge the risk of non-producing assets
-No hassle, eliminate accounting, and prevent tax and income implications
-Avert impact of fluctuations in oil and gas prices

2. Knowledge on state laws
If you are considering mineral extraction, you need to have a good knowledge of mineral extraction laws in your state. Most states have laws that govern mining and drilling activities that vary from one state to another. In addition, there are also many legal issues to be aware of on ownership and production on mineral rights.

3. Reputation and track record of the leasing company
This is a very important consideration while you are leasing your mineral rights. Many companies that lease do not intend to drill well stranding owners with a nonperforming lease that they cannot escape. Potentially they may receive little or no income throughout the lease. Even if drilling occurs, it can sometimes take several years to benefit the owner making it better to sell your rights and eliminate all risks related to ownership.

4. Understanding the agreement
In most transactions, the leasing company prepares a contract for your signature. Leasing documents contain many clauses which are difficult for those not in the business to understand. There can be many potential pitfalls that can affect the owners by signing a bad lease. Mistakes can be made by an uninformed mineral owner in these agreements. Again selling eliminates the risks associated with signing bad leases.

5. Rights of surface owner
In many cases, mineral rights and surface rights are owned by two different parties. If you own both surface and mineral rights, you can benefit by selling the mineral rights but keeping the surface ownership. Basic rights are provided by the state laws. You will have sufficient protection for crops, livestock, buildings and personal property. This can help to bring in cash for the current needs but retain ownership in the surface for the long run. Read more here. 

If you only own the minerals you can sell the minerals and eliminate having to deal with any issues that arise with the surface owner.

Now that you are aware of the benefits of selling mineral rights over leasing make a wise informed decision. If you do sell your mineral rights, make sure that you approach a reliable company that helps you in closing the deal at a fair price without any hassles. Visit site to know more.