3 Options For Land Rich In Minerals
Posted on: 27 January 2017
Whether it's oil, gemstones, natural gas, coal, or any other type of valuable natural resource, land that's rich in minerals can lead to a big payday for its owners. The owners of this land have something called mineral rights. This means that they are able to sell, lease, or gift the minerals on their land to whomever they choose. There are a variety of ways to go about this and each has different advantages. Here are three options for owners of land that's rich in minerals.
Selling Mineral Rights
One option for landowners is to simply sell their mineral rights. First, owners should make sure that they own both the mineral rights and the surface rights to their land. In some states where there are plenty of mineral deposits, the owner of the land may only own the surface rights and not the mineral rights. With the surface rights, the landowner owns the top of the land plus whatever structures are on it, but does not own the minerals below. For those who own both, selling the mineral rights can be lucrative. They can also retain the surface rights, but whoever buys the mineral rights will have the right to extract those minerals. The main draw of selling the mineral rights is that it leads to one lump sum payment.
Leasing Mineral Rights
Another option is to lease the mineral rights out to a company, such as Oklahoma Mineral Rights and Royalty. In this case, a company goes onto the property and mines or removes the natural resources for a set amount of time. Once that time has expired, the mineral rights revert back to the owner of the land. This is a great choice for landowners who are unsure of the quality or amount of minerals on their land. The company that leases the mineral rights pays the landowner royalties. These royalties are a percentage of the profits that the company makes off the minerals they remove.
Selling The Surface Rights
Another option for landowners is to sell their surface rights but retain their mineral rights. This may be the right choice for property owners who want to move but want to retain the ability to make money off any minerals down the road. Keeping the mineral rights allows the owner to lease them or sell them at a profit in the future. They can also profit in the short term by selling the surface rights as long as the buyer agrees to not having the mineral rights.
Having land that's right in minerals can be a big financial windfall for landowners. There are a variety of options to choose from including selling or leasing the mineral rights in order to make a profit. It's also possible to sell the surface rights while retaining the mineral rights to the property.
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