Common Mineral Owner Questions and Answers

As a mineral owners, it can be difficult to find reliable and trustworthy information about your mineral rights.   At US Mineral Exchange, our goal is to provide accurate information that a mineral owner can rely on.   After spending years helping mineral owners sell mineral rights, there are a number of common mineral owner questions and answers.  We have compiled all of these questions below to help you gain a better understand your mineral rights.  Whether you decide to sell mineral rights at US Mineral Exchange or not, the questions and answers below should be a valuable resource.

Find the section below that best describes your question:

Most Common Questions

There are many different factors that will affect the value of your mineral rights. All of these factors will play a role in determining the value of mineral rights. Here are just a few of the factors that will affect mineral rights value:

  • State & County
  • Location within the County
  • Whether the property is producing royalties
  • Whether the property is leased
  • Oil and Gas Prices
  • Surrounding Production
  • Lease Terms
  • Mineral Rights Buyers

The truth is that it’s extremely difficult to determine the exact value of mineral rights until they are put up for sale. When you sell mineral rights and get the property in front of a large audience of buyers, it allows the market to determine the true value of your property. For additional information regarding the value of mineral rights, please read the articles below:

Value of Selling Mineral Rights
Value of Selling Royalties

If you want to sell mineral rights for the maximum value possible, the only way to do this is get the property in front of a large audience of buyers. Why is that important? When you get your property in front of a large network of mineral rights buyer, they will compete against one another to pay the highest price. This allows you to carefully evaluate each offer that comes in and then determine which offer best meets your needs.
The most common mistake a mineral owner makes is accepting the first offer they receive. Many mineral owners are afraid that they will lose out if they don’t accept the offer in their hand. The reality is that you can often get substantially more by shopping your property around and finding the buyer who is willing to pay the highest amount. Don’t be pressured into quickly signing anything or selling before you are ready. Your mineral rights may be extremely valuable and you want to make sure you get the maximum value when you sell mineral rights.
You basically have two options when it comes to selling mineral rights. You can either:

1) Choose to sell mineral rights yourself. This will require you to search out individual buyers on your own and hope that you find the one who can pay the highest amount. In addition, you will need to be careful that you are working with a reputable buyer.

2) Choose to sell mineral rights with US Mineral Exchange. Our company is 100% dedicated to helping mineral owners sell mineral rights for the highest possible price. We only work with reputable mineral rights buyers and we have a massive network of buyers who make offers on properties.

You can sign up to sell mineral rights with US Mineral Exchange here: Create Sellers Account

Questions? Fill out the free consultation form and we’ll be in touch: Free Consultation

If you received an offer to sell mineral rights, that’s great news! It means there is demand for your property and there will likely be other buyers who are also interested in making an offer on your property.

The first thing you should do is ask for the offer in writing. A reputable company would be willing to put the offer in writing and give you some time to evaluate the offer. With one offer in hand, you now have a starting point for how much your mineral rights are worth.

The next thing you should do is create a listing at US Mineral Exchange and see what other buyers are willing to pay. Let’s pretend that you received an offer to sell mineral rights for $1,000/acre. Once you list at US Mineral Exchange, you’ll get offers from other buyers which will help you determine if $1,000/acre is a fair price. You may get a few offers in that all fall under $1,000/acre which tells you that the offer is a good one and you should accept it. However, many mineral owners find that after listing at US Mineral Exchange they get offers that are significantly higher than the initial offer they received.

You can sign up to sell mineral rights with US Mineral Exchange here: Create Sellers Account

Questions? Fill out the free consultation form and we’ll be in touch: Free Consultation

Mineral Rights Value

If you have non-producing mineral rights, it means that your mineral rights are NOT currently producing and you do not receive royalties. Just because your mineral rights are non-producing does not mean they don’t have value. In fact, your mineral rights could still have a lot of value. Unfortunately, it’s very difficult to value non-producing mineral rights because it can vary significantly even within a singe county. For example, your non-producing mineral rights could be worth just a couple hundred dollars per acre of $10,000/acre depending on where they are located.

If you have questions about the value of your mineral rights, fill out the free evaluation form. We can help give you some idea of the value: Free Consultation

The only way to know for sure how much mineral non-producing mineral rights are worth is to put them for sale and see what buyers are willing to pay. When you sell mineral rights and get the property in front of a large network of buyers, it allows the market to price the value of your property and ensures you get fair market value.

If you are currently receiving monthly royalty checks, it’s much easier to determine the value. The value of royalties is typically based on the monthly amount you receive from your royalties. As a general guideline, you could expect to get anywhere from 4 years to 6 years times the average amount you receive each month.

Use the calculator below to quickly get an estimate of the value of royalties:

Keep in mind that the range of values provided above may be significantly less than the true value if there is additional drilling opportunities for your property. Many mineral owners receive multiple offers when they list royalties for sale.

If you specific questions about your property, contact us using the free consultation form below. We speak with mineral owners every day about their specific property and help them get a better understanding of the value they will receive when selling mineral rights.

Free Consultation

When you want to find the value of your home, you just head over to Zillow for a quick estimate. Unfortunately there is no Zillow of mineral rights. The reason is that mineral rights value is typically kept private when a sale occurs so there is no public information to pull from.
There are a few reasons why it’s so difficult to find out the value of mineral rights:

Location: Your location will have a huge impact on the value of mineral rights. There is no way to give a specific value for mineral rights without knowing the exact state, county, and even the location within the county. Even then, every buyer values a property differently.

Oil and Gas Prices: With the recent decline in oil and gas prices, mineral rights value has been affected. While buyers realize that the price goes up and down, they do pay close attention to the price of oil and gas when making a decision to purchase mineral rights.

Timing: The price of oil and gas, geopolitical issues, new information about production in the area, and many other factors affect the value. We have seen many mineral owners who declined offers because they believed the value would increase over time. A drop in oil and gas prices or a few bad wells drilled in their area and they can no longer get offers anywhere near what they received in the past.

Individual Buyers: Every buyer is going to value a property differently. In fact, the difference between what one buyer offers and the next can be significant. One buyer may believe a property is worth $1,000/acre and the next believes it’s worth $2,000/acre. You want to make sure you find the buyer who is willing to pay the highest value.

Limited Information: One of the main reasons it’s so difficult to value mineral rights is that the information is not public. There is no way to know what properties are selling for unless you were directly involved in a specific mineral rights sale.

All of these items make valuing mineral rights very difficult. Your best bet is to fill out the free consultation form below and we can talk about your specific property. While we can’t give you an exact value, we can help you estimate the value of your mineral rights:

Free Consultation

Selling Mineral Rights at US Mineral Exchange

To get the process started, gather as much documentation as you have an head over to the “Create Seller’s Account” link below. There you will be able to create an account and set up your listing. Alternatively, you can fax your documentation to us at 888-833-8391 and we can set up the listing for you.

You can sign up to sell mineral rights with US Mineral Exchange here: Create Sellers Account

Questions? Fill out the free consultation form and we’ll be in touch: Free Consultation

If you want to sell mineral rights for the highest possible value, it’s important to have documentation that proves your ownership. Buyers will be significantly more interested in your property if they have some documentation to review. The following documentation is helpful:

Lease Agreement
Previous Lease Agreement
Mineral Deed
Royalty Checks
Previous Year(s) 1099
Division Orders
Tax Documentation

The more information you can provide the better!

Nothing!

There are absolutely no costs to list your property. We operate using a success-based fee. Meaning that if we cannot get your property sold, you owe us absolutely nothing. All offers we present to you are net of our commission. If you accept an offer presented, the buyer or the buyers closing agent pays us our commission directly at closing. You never have any out of pocket expenses – EVER.

Absolutely not! When you get an offer through US Mineral Exchange, there is no obligation at all. In fact, if we don’t believe the offer represents fair market value we will recommend declining the offer. You will never be pressured to accept any offer you receive at US Mineral Exchange. Our goal is to help you find the right buyer for your property so we don’t believe a mineral owner should be forced into accepting anything that doesn’t meet their needs.
Many mineral owners have an offer in hand when they find US Mineral Exchange. They want to know if it’s a fair deal and whether they should accept it. We always recommend that they list their property with US Mineral Exchange and see what our large network of buyers is willing to offer. If you have an offer in hand, listing is beneficial because one of two things will happen:

1. You will not receive an offer above the one you have in your hand. However, you can feel confident that you are working with the buyer who was willing to pay you the highest price.

2. You will receive an offer above the one you have in you hand. This allows you to receive more cash for your mineral rights. Many mineral owners get offers that are significantly higher than the offer they have in hand.

We require you to list your property for a minimum of 30 days. After 30 days you can have your listing removed with no obligation to us. The reason we require 30 days is that listing for less than 30 days does not give buyers enough time to evaluate properties. Buyers prefer US Mineral Exchange because the listings we post are from mineral owners who are serious about getting their property sold. Committing to list your property for 30 days shows buyers you are serious, and in turn, means more buyers will evaluate your property and you’ll end up making more money!
At US Mineral Exchange, we take privacy very seriously! Our system was designed so that none of your information is available publicly online. Only registered buyers can see the details of your property. We manually review each and every buyer that signs up at US Mineral Exchange to ensure they are a reputable mineral rights buyer before they can access our system.
Every sale will happen a little differently but you can expect the following:

1. Create a listing
2. Once the listing is activated, we will start marketing the property to our large network of buyers.
3. Buyers will start making offers on your property. We will present these offers to you and work with you directly to help you understand the offer and weigh whether it’s a good decision for you.
4. Once an offer has been accepted, you will sign a purchase and sale agreement (PSA) that starts the formal due diligence process. This allows the buyer time to run title (at their expense) to ensure you own the property.
5. Once due diligence is complete, a mineral deed will be signed and notarized by you which officially transfers the ownership to the buyer.
6. We will facilitate the closing process where the deed will be delivered to the buyer and you will immediately receive payment.

We’ll be there every step of the way! As we work through the process of selling mineral rights our team will be there to answer your questions.

It really depends on your specific property. If you are selling royalties or own mineral rights in a prime area, you might start receiving offers immediately after listing. On average, mineral owners start receiving offers within 1 to 2 weeks after listing for properties that are in active oil and gas areas.