Making Oil and Gas Mineral Rights Work for You

by | Apr 2, 2015 | Business Services

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Oil and gas mineral rights are essentially the rules and regulations of gas and mineral ownership and. Since surface land ownership does not always include mineral rights for the same land, ownership of the mineral rights can be available to a buyer. It is a question of who already owns the rights and if they are willing to sell them or keep them as an investment. Additionally, a mineral rights owner may lease the resources, such as gas or oil, to the lessee of choice. There are different ways to go about gaining production value from oil and gas minerals.

Getting the Most Out of Oil and Gas Rights

A mining company might do well to purchase a property entirely, including oil and gas mineral rights. Employing the services of a well-established land and mineral company with experts to assess potential helps determine value of the oil and gas on the land. This appraisal will be essential in making the right choices to either purchase the mineral rights outright or lease the land for a period of time, mining the mineral for production value. The later could be a better option.

If the appraisal reveals high potential for massive oil and gas deposits, purchase of all the land, including the surface land, gives mining companies complete oil and gas mineral rights. It will also give the companies rights to access the minerals using any means they see fit. This can be better than having to contend with surface land owners when it comes to extraction issues.

The Mutual Benefit of Leasing

Leasing mineral supplies from a land owner with mineral rights to the land is often a good option. This is particularly the case if the quantity and quality of the minerals is uncertain. With a lease, the company seeking to benefit from the mineral production value can be assured they do not end up owning rights which turn out to be more limited than expected.

The lease option is beneficial for mining companies and land owners, as owners receive royalties during a lease period. At the end of the lease, the mining company can either choose to purchase the rights completely, extend the lease, or terminate the agreement. This is all determined by how successful the mining is in terms of yield, quality, and production value.

There will be other considerations influencing how to go about leveraging the mineral rights through either lease or purchase. Different states present various laws concerning extraction methods and rights of surface land owners above where the oil and gas is. Land owners have different rights depending on the State zoning falls regulations. These issues can all become complicated in terms of logistics for both buyer and seller. Employ a land and mineral service to assist with the development of decisions, avoiding confusion.

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