A lot of factors should first be considered and looked into before selling your mineral rights. Aside from knowing the total area of the property you own and its boundaries, you have to be sure you own the mineral rights and not just the surface rights of the property. Not having a long history of family property ownership can cause complications when you are considering selling your mineral rights.
The fragmentation of land – the division of land into smaller ownership parts – makes the administrative oversight that is required for small interests is often the reason why many landowners choose to sell their mineral rights as well as inherited mineral interests. In order to determine whether you own the mineral rights of an inherited property, you may need to hire the help of an oil or gas landman. The landman is often and independent contractor whose role is to research and identify the ownership or mineral rights. Because a hired landman is a third party between the mineral rights owner and the buyer (either oil or gas companies or other private individuals), establishing an open and honest relationship – one without conflict of interest involved – to ensure fair and just negotiations.
One thing you should consider when thinking about selling your mineral rights, if you are legally permitted to, is its future value. Selling your mineral rights is a huge gamble, especially if over time the value far exceeds the upfront sales value given to you. Next, since mineral rights can be inherited, it should be considered in estate planning. Passing on your mineral rights to your children can ensure their future. Lastly, if you sell mineral rights but still have surface rights, you might have portions of your property that will be damaged or deemed unusable. Although there is compensation for such property damage, it might not be enough to cover for the whole loss.
State laws regarding mineral rights can vary from each state and it’s a complicated asset to liquidize. Therefore, it can be advisable to consult a broker such as the one found at the website The Mineral Auction. People who understand such laws and know how these can affect your decision in selling your mineral rights could come valuable to ensure that the negotiations are smooth and fair. With so many things at stake, finding the right people who can help you is the best way to secure your financial future.