If you’ve ever thought that oil, gas and mineral rights royalties were complex or difficult to understand – Clear Fork Royalty has some facts and stats for you!
Oil and gas royalties are fairly simple when explained plainly – let’s explore together.
1. Understanding Surface Rights
Surface rights are exactly what they sound like - you still own the surface of the property, but the rights of the minerals beneath the surface can belong to another party (someone you sell those rights to).
By law, surface rights are separate from mineral rights, meaning the actual ground can be owned by you, while the resources are owned by another. This gives the mineral rights owner (currently you) priority over the profit of the property.
State laws vary, but mainly, there are required protections for the mineral rights owner. This is why your contract or written agreement is important, because you want to keep protections for your surface rights, or property rights, even after you sell your mineral rights.
2. Know Exactly What You Own
When you are selling your mineral rights, you need to know exactly what you are selling. This might seem too simple to mention, but you would be surprised how often we have clients who aren’t fully aware of what they own, or what they are looking to sell.
“Minerals” are any material in the ground that can be mined. This includes oil, natural gas, metals, coal, and more matters. And your mineral rights royalties are the money or payments you receive for those minerals.
Now that we have the definitions understood, let’s move on to what you need to know before you sell.
Before you sell your mineral rights, it is imperative for you to confirm that you are the owner, especially if the land has been passed down to you. Next, make sure you know what minerals are currently within your land by an estimate or audit.
Now you have the information needed for the next step: knowing your mineral’s worth.
3. Know the Worth (& a Fair Price) for Your Mineral Rights
Before you can consider selling your mineral rights and gaining mineral rights royalties, you need to understand pricing, the unpredictability of oil and gas pricing, and the risks (and benefits) involved in selling.
Maybe you are offered a certain price that seems low – because the price of oil and gas is low. Will you wait until prices rise and you can receive a better payment, or will you sell immediately because you prefer having the money now instead of waiting an unspecified time?
This is why getting estimates is so important. Check with Clear Fork Royalty for a free, no-obligation offer today, and know your options (and your value).
Know the Timeline for Mineral Rights Sales
Some companies claim to get you money that same day – but make sure you understand that paperwork and doing things the right way takes time. We aren’t saying that your mineral rights royalty buying company should drag their feet and take weeks – absolutely not!
But if you are feeling pressured into selling immediately or if they are cutting corners on paperwork – you might end up paying for your instant gratification in the future.
First Person to File VS First Person to Sign
Did you know that the first person to file their purchase of mineral rights is the owner, not the first person to sign in Texas? That means it is a literal ‘race’ to the filing office to determine who gets the purchase.
Make sure you understand the specific laws and state-by-state regulations of your area by working with a mineral rights buying company who actually resides in your area.
If you are working with a company from California or New Mexico, then slip-ups can happen, and maybe your sale can go sideways. Cover all your bases by choosing a local mineral rights buying company near you who will know local laws and be able to guide you through the process of selling easily and surprise-free.
Don’t Be Confused by Mineral Rights Royalties or Sales – Call Clear Fork Royalty Instead!
Clear Fork Royalty is your transparent, awarded, and local mineral rights buyer. We treat you and all of our sellers like friends, giving you the advice, information and time you need to make the decision you’ll be happy with (and we make offers you’ll be happy with too).
If you are considering selling your mineral rights, then contact Clear Fork Royalty for your very own free, no-obligation offer today.