Mineral Rights Value in Colorado

//Mineral Rights Value in Colorado

Mineral Rights Value in Colorado

By |2019-06-27T22:49:12-05:00June 27th, 2019|Mineral Rights Value|

Mineral Rights Value in Colorado

Many mineral owners contact us asking about mineral rights value in Colorado.   It may seem impossible to determine mineral rights value in Colorado!  This article will help you better understand mineral rights value.  We will walk you through how to estimate mineral rights value in Colorado, how to get maximum value, and how to sell for the highest price.

Please keep in mind that the information below is provided only as an estimate.  The only way to determine the exact mineral rights value in Colorado is to sell mineral rights.  When you sell mineral rights in a competitive environment.   When you sell mineral rights at US Mineral Exchange we ensure you get the highest market value possible.

The information we have below is a good rule of thumb or ball park guess of mineral rights value in Colorado.   There are simply too many factors to estimate mineral rights value in Colorado with 100% accuracy.

Estimate Mineral Rights Value in Colorado

The most important thing to understand about estimating mineral rights value in Colorado is that there are no “comps.”   Most of us are familiar with real estate comps.  By looking at surrounding homes in your are you can compare square footage, year built, etc, against the sales price and roughly determine the value of your home.  In the mineral rights market many mineral owners try to do the same thing.  Unfortunately comps do not work in mineral rights.  There are simply too many factors that play a role so each property is unique.  What someone in your county sold for is irrelevant to the value of your mineral rights.  Check out our article on estimating mineral rights value to learn more about those factors.

Even though comps are not a good way to estimate value, there are some rules of thumb we can use to get an estimate.   To estimate the value of mineral rights in Colorado we first need to determine what phase of the drilling process your mineral rights are in.   There are three different phases for a mineral owner.  The mineral rights value in Colorado will vary depending on the status.  Your mineral rights can be one of the following:

Producing Mineral Rights:  If you get a monthly royalty check, you have producing mineral rights.   Note: Your property is also considered leased until you no longer receive royalty income.

Leased Mineral Rights:  If your property has an active lease but you do not get any royalty income, your property is leased.

Non-Leased Mineral Rights:  If you own mineral rights that do not generate any royalty income and you do not have an active lease, you have non-producing mineral rights.

Once you determine what phase your mineral rights are in, continue reading below to learn more about mineral rights value in Colorado.

Producing Mineral Rights Value in Colorado

If you have producing mineral rights you can use 4 year to 6 years times your average monthly income as an estimate.   To determine mineral rights value in Colorado for producing minerals, simply take the three most recent check stubs and add them together.  Then divide the total by three to get a monthly average.   Simply plug this number into the calculator below to see the approximate estimated mineral rights value for producing mineral rights.

It is important to note that this estimate does not take into account future wells.   If there are more wells to be drilled, the value could be substantially higher than this calculator is estimating.  This calculator also does not account for flush production.  If a lot of wells were recently (within the last 3 years) drilled on your mineral rights and there is no more drilling possible, you have flush production.   Oil and gas production will decline quickly over the first 3 years meaning your royalty checks will go down.   If this describes you situation, you should expect to sell mineral rights at the lower end of the range provided.

Leased Mineral Rights Value in Colorado

If you have an active oil and gas lease you can expect to sell for 2x to 3x the amount of your lease bonus.  When you signed the oil and gas lease with an operator you were paid a lease bonus.  This lease bonus was a one time payment giving the operator the right (but not the obligation) to drill.  As a general rule of thumb, the mineral rights value in Colorado for leased mineral rights is 2x to 3x the total amount of your lease bonus.  For example, if you leased your mineral rights for $100,000 you could expect to sell for $200,000 to $300,000.

As mentioned before, there are many other factors that play a role.  You may sell mineral rights in Colorado for above or below this range depending on market conditions.

Non-Producing Mineral Rights Value in Colorado

If you do not receive royalty income and do not have an active lease this will negatively effect the value of mineral rights.  Mineral buyers are looking for a return on investment.   If your property is not generating royalty income and there is no lease this means it’s unlikely there will be any return on investment soon.   Mineral buyers try to avoid these types of properties.  You can expect to sell non-producing mineral rights for under $1,000/acre.  The value typically falls in the $0 to $250/acre range.

Offer to Sell Mineral Rights?

Do you have an offer to sell mineral rights in Colorado?  If so, carefully consider your options before accepting.  Even if the offer you have in hand is for more than the estimates above do not accept the offer!  It is very important to get competitive bids to ensure the best pricing.   Many mineral owners take the shotgun approach and sell mineral rights below market value.   If you have an offer to sell mineral rights in Colorado we highly recommend listing the mineral rights to get competitive bids.

Maximize Mineral Rights Value in Colorado

If you want to sell mineral rights in Colorado for maximum value competition is the key!  If you speak to just a handful of mineral buyers and accept the highest offer you are leaving money on the table.   A fair offer to sell mineral rights is very hard to find on your own because there are thousands of buyers out there.  These mineral buyers know that you can only reach out to so many on your own.   All they need to do is be higher than the other buyers and they walk away with a steal!  Don’t fall for this trap.

To get maximum value when selling mineral rights in Colorado you need to get your minerals in front of thousands of buyers.  Allowing these buyers to compete and drive the price higher is the key to getting the best price.

Sell Mineral Rights in Colorado at US Mineral Exchange

When you sell mineral rights at US Mineral Exchange we can help ensure the highest price.   We have spent years building relationships with thousands of mineral buyers across the country.  When you list at US Mineral Exchange you will quickly get in front of thousands of qualified buyers.  These buyers will compete against each other to drive the price up and put more cash in your pocket!  We even allow you to bring us your best offer in writing and we have to beat the offer or we don’t get paid.  This makes listing a risk free way to verify the offer in hand is truly the best market price available.

The mineral rights value in Colorado comes down to finding the right buyer.   This is exactly what US Mineral Exchange can help you with.

Contact US Mineral Exchange

If you have questions about mineral rights value in Colorado fill out the form below.  We would be happy to help answer any questions you have.  One of our team members will be in touch shortly!

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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 required documents to list, 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.

We typically respond to inquiries in less than 12 hours and usually within hours of submitting the contact form. At US Mineral Exchange our goal is to be available to mineral owners as a resource so we pride ourselves on quickly replying and communicating with mineral owners.

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 market value because they felt pressure to sell.   There is nearly always a better price available.

We have two types of listings available to help you sell mineral rights for the best price:

Auction Listing – 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.  Learn more about our auction listings.

Standard Listing – 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.  Learn more about our standard listings.

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 cost to list 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 ever.  We only get paid if we can get you a better price than the current offer you have in hand.