Mineral Rights Property Types
As a mineral owner there are three primary types of mineral interest you may own. Which property type you own is going to play a key role in the value. It’s important that you fully understand which property type you own.
Producing Mineral Rights
The easiest type of property to identify are producing mineral rights. You own producing mineral rights when the oil and gas company has already drilled on your property. Each month you receive a royalty check for your share of the oil and gas production. This royalty check is the key indicator that you own producing mineral rights. If you do not receive a royalty check each month (or every few months) then you have non-producing mineral rights.
The nice thing about producing mineral rights is that there is a high demand for them. When you sell producing mineral rights there will be a large number of people who make offers on your property. Check out our article about the value of royalties to learn more about what your producing mineral rights could be worth. If you are interested in selling we have a standard listing or you can auction mineral rights in just 7 to 14 days.
Non-Producing Mineral Rights – Leased
If you are not receiving a royalty check each month but you have signed a lease agreement that is still active, you own non-producing mineral rights that are currently leased. This is a good situation to be in because it means that an oil and gas company intends to drill on your property in the next 3 to 5 years. In addition, it means there will be demand from buyers are who are interested in purchasing your property. You have the flexibility to sell mineral rights now or wait and see if drilling takes place and you start receiving monthly royalty checks. While being leased means there is a reasonable chance drilling will take place in the next 3 to 5 years, it’s very possible that no drilling occurs.
Note: If you have not signed a lease in 5+ years, it is safe to assume you have non-leased / non-producing mineral rights.
Non-Producing Mineral Rights – Unleased
When an oil and gas company decides they want to drill in an area, they must lease the property. If you are not receiving a royalty check each month and you have not signed a lease agreement, you have non-producing unleased mineral rights. The value of non-producing unleased mineral rights is the most difficult to determine. The reason is that there is not a high probability of any drilling taking place soon. The property will first need to be leased and then drilled on which will easily take 5+ years.
Important note: In general, we do not list non-leased / non-producing properties at US Mineral Exchange. Typically the value of non-leased / non-producing acreage is in the range of $0 to $250/acre depending on the state and county. We do make rare exceptions for clients who have a substantial (250+ net mineral acres) amount of non-leased / non-producing acreage, have a recently expired lease, or have offers in excess of $50,000. Please contact us if you are unsure about what the potential value might be and we can point you in the right direction.
Questions about Mineral Rights Property Types?
If you are unsure which property type you own, reach out to us using the free consultation form. We speak to mineral owners all the time and we are happy to discuss your property with you.
Contact US Mineral Exchange:
If you have questions about your mineral rights, we’re here to help! We speak with mineral owners every day and we look forward to hearing from you. Please don’t hesitate to fill out the form below with any questions and our friendly team will respond quickly.
Free Mineral Rights Guide
You can also check out our online guide to mineral rights ownership in 2020.
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Common Questions
The more information you can provide about your property the better! We can give you a better idea about the value of selling mineral rights if you provide more information. The most important thing we need is for you to answer the questions and provide your state and county.
If you have the <a href=”https://www.usmineralexchange.com/blog/sell-mineral-rights/required-documents-to-list-mineral-rights/”>required documents to list</a>, providing those is extremely helpful!
Absolutely not! When you inquire at US Mineral Exchange we will not be putting any pressure on you to sell. We will help answer any questions you have whether you are interested in selling or not.
At US Mineral Exchange, we take privacy very seriously. We will NEVER sell your information or use it without your consent. When you send us documentation or tell us about your property, that information does not go outside our company without your consent. Even when you list a property for sale on our website, we strictly control who has access to the information about your listing so that only legitimate buyers will be able to see property details.
Many mineral owners make the mistake of getting an offer and quickly selling. They then accept an offer far below <a href=”https://www.usmineralexchange.com/blog/mineral-rights-value/market-value-for-mineral-rights/”>market value</a> because they felt pressure to sell. There is <strong>nearly always</strong> a better price available.
We have two types of listings available to help you sell mineral rights for the best price:
<strong>Auction Listing</strong> – Our auction listings are for just 7 to 14 days. If you have an offer in hand you are seriously considering, an auction listing is a quick way to get a better offer and ensure a smooth closing process. <a href=”https://www.usmineralexchange.com/blog/auction-mineral-rights/auction-mineral-rights-at-us-mineral-exchange/”>Learn more about our auction listings</a>.
<strong>Standard Listing – </strong> Our standard listings run for 30 days. These listings are ideal if you don’t have an offer in hand or you are not in a rush to sell. <a href=”https://www.usmineralexchange.com/blog/sell-mineral-rights/list-mineral-rights-for-sale/”>Learn more about our standard listings</a>.
The reason that so many mineral owners decide to sell mineral rights at US Mineral Exchange is access to our large network of mineral rights buyers. Our goal is to help you get top dollar for selling mineral rights by getting your property in front of a huge audience of buyers. This allows buyers to compete against one another which ensures you get fair market value for selling mineral rights.
There are absolutely no <a href=”https://www.usmineralexchange.com/blog/sell-mineral-rights/cost-to-list-mineral-rights-for-sale/”>cost to list</a> your property. When you locate a buyer by listing your property with us, we are paid a commission directly by the buyers closing agent. This means you never have any out of pocket expenses <strong>ever. </strong>We only get paid if we can get you a better price than the current offer you have in hand.