Making Money From Your Mineral Rights

People who are lucky enough to own land containing valuable mineral deposits should always consult with a mineral rights broker before making any decisions about selling their mineral rights. That’s a lot of times to say the word “mineral,” but it’s true. Much like any other kind of auction, the first bid is going to be low. People who own mineral rights may be easily swept off their feet by the first offer that comes their way, but more likely than not, that offer is significantly less than what they could get elsewhere.

In Texas, the mineral estate and surface estate are understood to be two separate things. This means that while most of the time, the owners of the surface estate (the land that you can see) also own the mineral estate (the mineral deposits under the land), the mineral estate can be sold or rented separately from the surface estate. This has the tendency to lead to conflict and confusion over who actually owns what and who has access to the mineral estate.

When it’s really confusing, a lawyer who specializes in mineral, oil, and gas rights is usually required to help sort out the situation. Complicated mineral estate situations can end up in court, and the party that comes out victorious may need further help if they’re looking to sell or lease their newly won mineral rights. 

Austin-based mineral rights brokers at this firm say that many of their clients come to them after they’ve already been made an offer for their mineral rights. These people are looking for guidance on what to do, and their first question is always “how much are my mineral rights worth?” The answer to that question is dependent, of course, on how much people are willing to pay. 

In 2019, someone could make a lot of money selling their mineral rights, and they could make it quickly. However, that might not always be the case. It is likely a good idea to sell while the market is hot instead of waiting for it to get even better, because it might never improve to the levels you want it to be at? No one knows for sure what will happen in a few years or even a few months’ time, so if you need cash soon, and you’re sitting on a valuable mineral estate, you may want to consider selling. 

The emergence of cleaner, renewable sources of fuel and energy are likely to push nonrenewable coal and oil out of the picture at some point in the near future, meaning that the price of mineral rights will decrease. Because of this, it’s better to sell soon while there’s a competitive market than to wait and miss out on making bank.

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