Knowledge is Power in Dealing With Your Mineral Rights Lease

By Joseph O. Dubose

You may have been offered a deal by a company to buy your mineral rights lease for the property you own. What do you do next? There are a number of things you should understand before you agree to any proposal, so the last thing you should do is be impatient, or make too quick of a decision.

Your biggest enemy now is yourself. That means you don't jump on the first proposal that lands on your lap without first familiarizing yourself on the types of leases, federal and county laws and what your property holds (oil or gas, gold, copper, silver, etc.). The common mistake landowners make is sell their mineral rights all together, only to find out later that they can actually deal each of their minerals separately to different companies. Splitting up the mineral rights separately and with different companies can pay a much higher yield.

If we were to make an analogy, think of your mineral rights lease as a tree, and you can sell the fruits to a food processor, the wood to a lumber company, and maybe the leaves to a herbal manufacturer. In the same manner, you can deal your oil to an oil company and your gas to a gas company. There can also be the problem of ownership: some landowners only find out later after they were contacted that they only own the surface rights and not the minerals below it.

In your eagerness to make money, you may have hired a lawyer right away which could be another mistake. In a perfect world, the lawyer would answer your questions without asking for a fee. Just as there are unscrupulous speculators, there are also greedy lawyers. In a most unfortunate situation, should you chance upon one, you'll be paying him on a retainer without knowing the true value of your mineral rights lease first. In the end, you may find yourself in a mountain of debt with nothing to show for it.

The value of your mineral rights lease varies according to its proximity to the presence of hydrocarbons, because that will determine the production capacity of your mineral rights lease. If it's non-producing but located in an area where there's historical production of oil, gas or other minerals, it will also yield some value but not always as much as you think. The size of your property will also be factored into the total signing bonus, royalty terms and the selling amount. Naturally, the smaller the property the lesser the amount.

Lastly, don't live beyond your means, especially if your mineral rights lease has not yet yielded returns. So, cancel that reservation in a posh hotel for your celebration, or delay the purchase of that car you have been dreaming of. Be sensible. Wait until you have a payout on your mineral rights lease first.

UniRoyalties, Ltd. is the leading source to evaluate your oil and gas lease to maximize your asset withdrawal. UniRoyalties, Ltd specializes in fast evaluation and processing of your oil and gas investments lease and provides a complete solution working on behalf of the investor. Protect yourmineral rights lease by getting the best and the most beneficial deal ever which you can positively count on in UniRoyalties. Article Source: http://EzineArticles.com/?expert=Joseph_O._Dubose