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