Four Deadly Sins that Landowners Do When Selling Mineral Rights

Selling Mineral Rights

The energy requirements have never seen a downfall and have always been rocketing towards sky. With the advent of technology, new gadgets and gizmos, space explorations, defense requirements and others, the need for oil and gas and other energy minerals have witnessed the peak point in recent times. Therefore, the requirement to explore and drill lands in quest for these minerals has increased consequently.

And the opportunities to earn cash and generate money from lands without having to move and work have emerged for landowners. Now that landowners have the right to earn money from the minerals that may or may not lie beneath their surface land, they can extend this right to royalty buyers and earn money. However, before signing the contract with any company, there are four common mistakes that landowners do when they are up to sell oil royalty. If you are selling oil royalties or mineral rights, this article will serve to be of great importance to avoid these mistakes. Following are the five common blunders to avoid at all costs.

1.     Don’t sign your very first offer

As soon you start inquiring about the bid price, you are likely to receive offers in as short as two days. However, you should refrain from signing your first offer then and there. Instead, watch out for the offering and value you are receiving for it. Contact more royalty buyers and evaluate each bid carefully.

2.     Don’t act to be spendthrift without having to earn a dime

This is what most people would do upon having to sign an agreement. As a landowner, you must know that your will earn most of your income through mineral leasing if and only there is an abundance of mineral beneath your land. There are many dry holes and wells that bring no fruit out of the agreement.

3.     Talk to the royalty buying firms in full

Whether it is the issue of use of unrestricted water or the mineral rights issue, you must know about all that are your concerns. Don’t settle for a low bid just because you are in haste. This process takes guts of patience and persistence in order to receive a fruitful offer. Therefore, firmly state all the issues and rights that you are extending and ones that you are not.

4.     Read the agreement paper with eagle’s eyes

Once you have decided to lease your mineral rights and have received the agreement at your desk, don’t just rush to sign it. Even if you have negotiated the offer or accepted their offer with a handshake, all that starts is with your sign upon the agreement. So, once you receive the agreement read it carefully and make sure there are no liabilities upon you, ambiguous statements and misrepresentation of figures.

To pull if all together, getting the right offer with a trustworthy royalty buyer may be a hard nut to crack but it is not impossible with www.uniroyalties.com. Call 1-888-916-0220 for free quotation

Sell Mineral Rights – Know Your Options When Selling Gas and Oil Royalties

People often think of how can they sell mineral rights or gas and oil royalties but the procedure is even simpler than you would think of and stress over the whole subject. If you are currently getting royalty checks and then you choose to give away your oil & gas royalties for a huge sum of cash straightaway, then you can expect an offer that bulks up to aprobable 20 to 75 months of checks.

If you are wondering that you have not received a royalty check, so can you still sell mineral rights?The answer is ‘Yes,absolutely’. However, it depends on the locality of your minerals and any scheduled drilling in that location, which can help you earn a decent amount per acre, an amount ranging from hundreds to possible thousands of dollars. A number of businesses also offer a free evaluation of land, which allows you to have multiple proposals awaiting your approval so you can select the best option.

When you are selling mineral rights, you need to understand that it is not the land that is on sale, but only the minerals underneath it. Moreover, you can also sell only a slice of the minerals from your land. For example, you could maintain 25% interest for the prospective drillings by selling only 75% of the minerals on your land, subjectto the presence of oil.

Minerals Decrease in Value as Time Passes By

The situations can go in two directions that are poles apart if you choose to hold back your minerals and either position can cause several problems for mineral proprietors.

·         Firstly, it is possible that the land will be drilled and you will enjoy the monthly incoming royalty checks but eventually you will stop receiving them and most probably, they will decline on a monthly basis.

·         Secondly, if you have received an offer against your property that is up for sale, for $500,000, your mind will start exploring other possibilities because if one party is offering $500,000 then the property might be worth more and agreeing on the first offer that arrives would be a big mistake.

However, after you have refused to take up the petroleum management company’s offer and they buy the land that stands next to your property, begin extraction and drilling and then find out that they have significantly over-estimated the mineral quantity in that area. This scenario will have a negative impact on your land’s value rendering it worthless.

Companies that buy mineral rights or / and oil & gas royalties are involved in a high-risk game. They may earn that money back after some years, which they are paying to you or they may never get it back. This means that these oil and gas firms are basically gambling on better production, which is erratic.

The last point to consider before you sell mineral rights or oil & gas royalties is all the prospective problems that are related to the upkeep of the property. You would have to pay the property taxes, worry on the variable income amounts, and dealing with a number of oil and gas firms on a regular basis.

Uni Royalties Limited is your trusted buyer of mineral royalties. We not only help you meet with potential oil and gas firms, but as a reputed royalty purchaser, we also buy mineral rights offering you the best deals that no other competitor could offer. If you are ready to sell mineral rights then we are here to buy them in exchange for a unique offer. Secure your future with us. Visit www.uniroyalties.com. 

The Right Time to Sell Mineral Rights

If you are fortunate enough to own some piece of land, your property might be of much value than the standard price of an acre in the area. You can be sitting on a gold mine, you never know. That is why an option to sell mineral rights might become viable.

It is recommended to check beforehand whether the previous owner of the land sold out the mineral rights or not. Most of the times, the land purchase includes the right to the minerals that maybe beneath the land. Rarely, the precious owner of the land may chose to sell out only the rights of the surface, in these cases the seller makes it clear to the potential buyers about their intentions regarding keeping their mineral rights.

Generally, the process of liquidating minerals is quite simple and is expected to be completed with a literally no or a very small expense on the behalf of the seller. A few of the companies offer to evaluate your land for free and they make an offer of the money they would pay you in return. Some of the companies before evaluating your land for free bind you to an agreement. According to agreement, you are bound to decline every other offer made to you except the company, which is evaluating your land.

Make sure that you do not agree to any such agreement. If previously you leased your land, you own a loyalty that is productive, or the location of your property is at such a place that it is within a few miles of a producing well; your property can be easily evaluated. Even if your property does not fall in above-mentioned properties, it is a possibility that there would still be buyers of your land in the market.

Before you put your land for sale, it is advised that you gather certain documents regarding it. For instance, documents that may help are mineral deed, division order, lease agreement, check stubs, plat maps, production records, geological record, etc. Virtually any document or record related to your land should be present and may assist you when a company is evaluating your land. Almost every company requires you to provide one or more legal documents before the company starts the evaluation process.

If you opt to sell mineral rights of your land, the company, which is going to buy, has the rights to take up as much land the extraction and evaluation process requires. This right does not gives them the ownership of your land, but what is beneath your land. Most of the companies are flexible regarding this and do not allow any activity within 200-500 yards of a dwelling etc.

7 Things to Know about Selling Mineral Rights

Selling mineral rights and earning oil and gas royalties is becoming increasingly popular with landowners. In USA, more than a million leases selling mineral rights have been signed from 2001 to 2011 by landowners for royalties, and many more are landowners are likely to follow suit (Journal of Accountancy). Are you considering selling the mineral rights on your land and earning a royalty? Here are seven things you need to know:

Sell Mineral Rights for Royalties

Mineral rights can be sold by landowners for earning handsome royalties. A royalty in the oil and gas extraction context is a percentage of profit that the lessee shares with the land owner or lessor from the production of the land. It is the percent of profits generated by the minerals extracted from a landowner’s property.

Gas and Oil Royalty Yield Handsome Profit

 Selling mineral rights to oil and gas companies can help you earn a minimum royalty of 12.5 percentage. Great negotiation skills, a property’s value and intense competition amongst the various oil and gas companies may raise this percentage to 15 percent, 20 percent, 25 percent or more.

Share Only Profit and Not Expenses

When you sell mineral rights of your land to a company, you do not have to contribute anything to the production expenditures while still retaining your share in the profit. This means that whatever the lessee has to spend on the exploration or extraction, you, the owner, will not have to bear any of the cost.

Bonus Culminating into Royalty

You can also lease the mineral rights to your land for a short term. Landowners are also paid up front, a signing up bonus for leasing their property for a short-term period. This bonus culminates into royalties if the lessee company is able to find the oil, gas, minerals it is looking for.

Ownership Details

 Before selling mineral rights to your land, get its ownership details and prior leasing agreements (if any) in order from the courthouse. Get the paperwork in order related to your ownership such as deeds, trust, maps, wills, previous leases, etc, before seeking or responding to buyers.

Expenditures and Processing Fees

Oil and gas royalties come with taxes of different kinds. If you are weary of expenditures and processing fees that would incur during the leasing and royalty settlement process, you would be amazed to know that leasing company may even bear certain transaction fees.

Legal Help

When drawing out a contract with a mining company, get the necessary legal help. Hire an attorney, with expertise in mineral transactions, who can review the contract to make sure it is fair and just. He should be able to negotiate and educate you about the potential risks and implications in your and protection from damage on your property.

UniRoyalties, Ltd. is a professional company that can review and process your lease and help you capitalize on your assets. A qualified company like UniRoyalties, Ltd. takes the guesswork out of selling mineral rights of your land.

Selling Mineral Rights for Profit

What are Mineral Rights?

Mineral rights are basically the rights of the owner to extract, mine, produce minerals from a piece of land. Selling mineral rights to companies (lessee) makes the landowners (lessors) get a chance to earn profit from the minerals found under their land. A land may contain hidden precious metals and minerals like,

•           Gold
•           Gas
•          Oil
•           Coal
•          Ores of metals
•          Gem stones
•          Salt

Leasing and Bonus

•          Instead of purchasing the entire land before mineral extraction, a company firstly may want to explore the potential of that land.
•          The owner of the land will then share with or lease the property to a mining or exploration company for a certain amount of money called bonus.
•         This lease will give the company the right to enter the property during a certain time period and conduct tests to determine the potential of minerals found there.
•          If the company is able to find what it’s looking for then it will buy, rent or lease the property to extract minerals and the owner will be selling mineral rights to that company.

Royalties

Once the minerals are extracted from the leased property, the company will pay royalty to the landowner. This amount can be fixed or based on a percentage of the yield. A contract is drawn to determine the royalty percentage.  

How to Sell Mineral Rights

Selling mineral rights can be a lucrative deal for land owners; however, they must possess the necessary knowledge and expertise related to minerals in order to strike a fair deal with a mining company.  In case you do not happen to have this kind of insight, then consider hiring the expertise of professionals for this purpose. It is beneficial to hire the services of professional companies as they:

•          Have the knowledge about the exploration type to draw minerals (drilling, mining, extracting, etc). 
•          Hold knowledge of state and federal regulations regarding mineral exploration.
•          Settle royalty/ profit percentage between the lease owner and the lessee.
•          Have awareness of implications of mineral extraction on the environment and the land owner’s lifestyle.

Hire the Professionals

•          Owners of land selling mineral rights must bear in mind that the buyer gets the right to explore the property and get the right to access and enter the property and extract the resources any time in the near future.
•          In majority of the contracts, the lessor cannot control when and how the extraction will take place; what kind of machinery and equipment would enter the property; and how the damage to the property will get fixed.
•          Thus, the seller and all future owners have to accept and live with the consequences of entering a legal binding contract. Thus, it is crucial to hire a professional company before you sell your land’s mineral rights.

UniRoyalties, Ltd. is a professional company capable of reviewing your oil and gas investment lease and helping you draw a lucrative contract on your land’s mineral assets. If you are thinking about selling the mineral rights of your land, seek assessment from a professional company like UniRoyalties, Ltd.    

Importance of Understanding About Royalties When Dealing With Oil Companies

In any business activity or a task, experience is always of prime importance because we are always surrounded by those people who are always looking to make benefit from other people’s weaknesses so to have information about any venture before you involve youself in it is very important. Therefore, you should always be aware of such people that make offers that are too good to be true and to pass such offers is not that easy because you need to have experience and knowledge to really identify such frauds.

It is very important that you choose the right person to get any advice. Take the example of oil royalties, if you are looking to sell oil royalties but you do not have enough knowledge about the proper ways and methods in which you should sell it then you should probably look around your neighbors. Because if you suspect that your property contains minerals then it is most probably possible that your neighbors or surroundings also have such minerals. Your neighbors might already have oil royalties and they have gained the proper experience and knowledge regarding selling mineral rights.

If it is not possible to get good and honest advice from your neighborhood then you should probably hire an oil or gas attorney that would give you really a good advice. In some areas, you are required to hire a lawyer in order to do everything legally and to get good bonuses and sell oil royalties properly. Some states have different rules and regulations that are not understood by you so for that reason you should hire a lawyer or attorney to make wise choices and decisions. This way you will properly understand Mineral rights, mineral interest and more about oil and gas firms.

If you do not trust lawyers or attorneys and you think that you can handle it by yourself then you can get the help of internet, from internet, you can get sample forms from oil and gas firms. They give systematic guidance about selling mineral rights, how to sell oil royalties, sell gas royalties, or buying gas royalties, buying oil royalties. However, always remember that this is a critical work and you should gather every necessary knowledge and information before stepping in.

Some oil and gas companies that give you sample forms; they will also give you a good assessment and evaluation regarding your property, its estimated worth and future worth by giving you evaluation curves. The geologist and engineers working for these companies prepare this information. They provide you decline curves that show how much decline the value of your property will face. All this information proves to be very helpful. Visit us

Contact Us

UNI Royalties, Ltd. 

P.O. Box 1959

Parker CO 80134

Phone:(720) 663-1187

Toll Free Phone: 1-888-916-0220

Toll Free Fax: 1-888-491-8525

Local Phone: 1-720-663-1187

Local Fax: 1-720-746-2899

E-mail: sellroyalties[at]gmail.com