The Basics of Selling Your Minerals
The typical landowner is not all that interested in their mineral rights until an oil company approaches him or her to lease them! At this point, getting educated about what you own and why you are being offered a lease becomes crucial. This is why the Tower Rock Oil & Gas Service exists: we are The Rights Resource and can help you make informed decisions through education and awareness. Oil companies lease minerals because they believe there is oil and gas to be found there. Once a lease is successfully negotiated between the mineral owner and the oil company, a royalty is created which entitles the mineral owner to a percentage of the value of the oil and gas sold once a well is drilled and starts to produce. Please contact us and we will be glad to provide you with additional reading material that would be helpful in your lease negotiation.
In many cases, mineral rights have been severed from the surface and often are owned by various individuals or entities. This fractionalization occurs when minerals are inherited and/or sold. At any point in time you can sell all or a portion of your minerals.
Primarily crude oil and natural gas, but may also include any element or chemical compound that has been formed as a result of a geological process such as gemstones, coal, ores of metals, etc.
Rights to oil, gas, and other minerals at or below the surface of a tract of land. Any or all of these rights may be conveyed by the owner. They include:
1. the right to develop
2. the right to lease the mineral rights
3. the right to receive lease bonus consideration
4. the right to receive delay rentals and
5. the right to receive royalty payments
The value of these mineral rights vary by:
oil and gas volumes being produced
anticipated performance of the well or wells
commodity pricing and market outlook
tract size (acreage)
various other factors