MineralRightsBuyer.org

If you are a mineral owner, be advised that we here at MineralRightsBuyer.org buy mineral rights and royalty rights in various oil and gas regions of the USA. First, the basics.

What are mineral rights?

In this discussion, we are talking about oil rights and gas rights, meaning hydrocarbons — oil and gas.

Mineral rights are rights enjoyed by a mineral owner, including the right to drill and explore for crude oil, natural gas and associated liquid hydrocarbons. If a mineral owner is wealthy enough and gambler enough, he can drill and explore his property by drilling an oil/gas well to produce oil and gas. But, few people fit that description. Now, owning mineral rights includes the right to grant an oil, gas and mineral lease to another. In the vast majority of instances, this is what a mineral owner does to develop his mineral rights. A mineral owner will sign a contract with an oil and gas exploration company, an Oil, Gas & Mineral Lease.

Oil Gas & Mineral Lease

An oil lease or gas lease, typically, includes a lease bonus, a “signing bonus” for executing the bonus. This is consideration, a payment in dollars per acre, for executing the lease. It can also include annual rental payments, but rental payments are not very common any more. The oil and gas lease also provides for a royalty. These royalties are expressed either in a fraction, such as 1/8th, 1/6th, 3/16ths, 1/5 or 1/4th, or a percentage, such as 12.5%, or 22.5%. This is the amount of production that a mineral owner will draw an oil check or gas check on, proportionate to his mineral rights ownership within the production unit.

What is a production unit? When an oil company drills a well, they form a drilling unit. This is an area of land that they anticipate will share in the hoped-for oil/gas production. Once they complete the well, a production unit is formed. In the vast majority of cases, the production unit is identical to the drilling unit. But, a production unit can, in certain cases, be a different configuration than the drilling unit.

Drilling and production units are established according to the oil and gas regulations of the state in which the well is drilled. The unit size varies, typically, from ten acres in size to 640 acres. With today’s horizontal drilling technology, units of 1,280 acres or more are sometimes formed. Say the unit is 640 acres and you own 100 acres. Your part of the unit is equal to 100/640ths, which amounts to .15625 of the unit. If you are leased, say, at a royalty of 3/16ths, to find out exactly how much your royalty check is based on, multiply .15625 by .1875 (3/16ths). This provides your decimal interest, the division order interest, which, in this case, is .02929688. So, for every barrel of crude oil and every thousand cubic feet (mcf) of natural gas produced, you would be paid .02929688 of that amount. You would then multiply that decimal by the price for the produced product (oil, gas and natural gas liquids). Bearing in mind that some wells produce only dry gas or only crude oil.

Sell Mineral Rights

So, those who own mineral rights can grant an oil and gas lease to an oil company to drill, explore and produce his minerals. If a well is drilled and if it strikes oil/gas, he will enjoy royalties on the well. However, he may wish, for various reasons, to sell his mineral interest. This is where a mineral rights buyer comes in. A mineral rights buyer can buy his mineral rights and the ownership of the right to drill and explore and also the royalty rights, which are transferred to the mineral rights buyer with a mineral deed.

Mineral rights have been bought and sold ever since the oil business began well over 100 years ago. Why does anyone sell minerals? For many reasons, such as, they need or want cash for something. To buy a home, a car, a vacation or perhaps they are just wanting an infusion of cash to make ends meet. Or to provide for retirement. Some people sell minerals because they are tired of dealing with the paperwork involved in owning mineral rights. Or, because they understand the tremendous risk in oil and gas exploration. Perhaps they realize that not selling, and enjoying a big cash payday, is too risky to pass up. There are many reasons to sell mineral rights.

Selling Mineral Rights

At MineralRightsBuyer.org, a sale of mineral rights is not complicated. First, you contact us to evaluate your property. You give us enough information such that we can assess it. When we come to an agreement on the selling price, we draw up a buy/sell agreement such as that used in real estate. This gives us time to check title on your mineral rights. We have to make sure you do, in fact, own the oil rights and gas rights for the subject property. We have to hire a professional, highly-experienced landman to check all of the county records for that property, usually, back to the 1800′s. Once we approve title, we draw up a mineral deed and arrange for the closing. So, it’s basically a 3-step process to sell mineral rights. (1. Provide the info to us… 2. We evaluate and strike a deal with you… 3. Close the deal by signing a mineral deed.)

At the closing, the mineral deed is executed, transferring ownership. We then give you a check for the sale proceeds. Here are websites that explain more — why sell mineral rights and also selling mineral rights.

Areas Of Interest

Where are we interested in buying mineral rights? First, we can buy any property that is producing oil or gas. If you are receiving a recurring royalty check, an oil check or gas check, we are interested in buying mineral rights for that property. But, if your mineral rights are non-producing, we might also be interested enough to buy minerals for it, as well. Each deal is different and has to be evaluated on its own merits. What we are buying is risk and potential. We add your property to our large mineral rights portfolio, which allows us to spread risk among many thousands of acres, across several states. Thus, if one property is a stinker and does not produce any income for us, others might do better. If we are good enough and lucky enough, we make a profit in the long haul.

We are especially interested in talking to you if you own mineral rights in a shale play. Such as the Haynesville shale, the Eagle Ford shale or the new play, the Tuscaloosa shale (the Tuscaloosa Marine shale). The Haynesville shale is in northwest Louisiana and east Texas. The Eagle Ford shale is in south Texas. The Tuscaloosa shale, a.k.a. Tuscaloosa Marine shale, is in central Louisiana, extending into Mississippi. And there are others, such as the Marcellus shale, the Utica shale, Bakken shale, Niobrara shale, Leonard shale or Avalon shale, Cana shale, Woodford shale, Monterey shale, etc.

How To Sell Mineral Rights

If you are interested and want to sell mineral rights, contact us. Tell us about your property. You will need to describe to us where it is and various things about your ownership. We can then evaluate it. We’ll be professional and courteous every step of the way.

Lastly, you might also want to review how to sell mineral rights.