Mineral rights do not just simply mean you own the minerals, but you also own the rocks, oil, and gas that may be found below the earth’s surface. Anything above the surface of the ground belongs to the property owner. A buyer does have the option to lease or buy mineral rights. If you purchase mineral rights, you have outright ownership immediately until you decide to sell. If you lease, then it is only for a certain period of time. These are both very important factors to consider when purchasing mineral rights, and hopefully the guide below will help you to make the right decision for you.
Find Out What Is for Sale
Sometimes the property deed may include some basic information on mineral rights, but more often than not, you have to do some digging. All you have to do is call your local government office to find current mineral rights owners. This is a matter of public record, so this should not be an issue when you choose to purchase mineral rights. Make sure you do a lot of research regarding the ownership of mineral rights as most of the rules have changed and evolved over time.
What Is a Mineral?
I am sure you know what a mineral is, but you need to ask the state in which you live what they consider to be a mineral. When deciding to purchase mineral rights it is important to remember that every state has different laws, do not ever assume what the rules are. As far as the state is concerned, you also want to make sure you know if there are specific laws concerning the sale of mineral rights. Every state has different drilling and mining regulations that you will want to study.
Negotiate the Terms
This is where you may want to get an attorney involved. Your attorney can look over the agreement terms, make sure everything is legitimate, and determine exactly how you should word the contract. You must make sure that the type of minerals that you will own are documented within the agreement, as well as property access, damage, and any other legal or financial matters. Once the agreement is drawn up, you and the attorneys involved must make sure that all terms are understood and agreed on completely. This will save a lot of headaches and inconveniences later down the road.
Once you have completed all of these tasks, you are officially a mineral rights owner. When you decide to purchase mineral rights it is crucial to remember that every state handles these transactions differently, so please contact your state government offices to find out more about the rules and guidelines involved when purchasing mineral rights.