Frequently
Asked
Questions

Top FAQ's
Owner FAQ's

Inheriting mineral rights

Mineral rights & land ownership

Mineral rights appraisal

Transferring (conveying) mineral rights

Mineral rights value

Reserving & severing mineral rights

Selling mineral rights

Leasing mineral rights

Buying mineral rights

Claiming unclaimed oil, gas, and mineral royalties

General FAQ's

Mineral rights explained

Net mineral acre & net royalty acre

Mineral deed & transfer forms

Mineral rights title

Recording mineral rights

Mineral rights taxes

Mineral rights & 1031 Exchange

What are mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

2

What does it mean if you have mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

3

Why are mineral rights important?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

4

Are mineral rights tangible or intangible?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

5

How do mineral rights work?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

6

Do mineral rights expire?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

7

Where do mineral rights start?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Mineral Rights
Explained

Net Mineral Acre &
Net Royalty Acre

What is a mineral acre?

Referred to as a Net Mineral Acre, or NMA, is a representation of the net acreage owned by a mineral owner from under the gross acres of a particular parcel or tract of land.  For example: If the gross acres of a tract of land are 40 gross acres and you are stated to own half of the minerals in that particular tract of land, then your net mineral acres owned are equal to 20 net mineral acres.

2

What is a net royalty acre?

A Net Royalty Acre, or NRA, is similar but different to that of a net mineral acre but are very much related.  A net royalty acre is a net mineral acre that is subject to an oil, gas, and mineral lease and has a certain royalty granted and provided for within that lease.  A net royalty acre can only come about once a mineral interest has be leased, otherwise it is simply a net mineral acre.  Net royalty acre is the most common term used today for mineral buyers, so it is very important to understand the math behind figuring net royalty acres. See our detailed explanation.

Mineral Deed &
Transfer Forms

What is a mineral rights deed?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

2

What is a mineral rights transfer form?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

3

What is a quit claim deed? Does it transfer mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Mineral Rights
Title

What is a mineral rights title search?

"Running title" is the act of conducting due diligence to

Running title is a mandatory process done by an oil and gas professional during the buying and selling of minerals and royalties.

2

Where can I do a mineral rights title search?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

3

Why would a mineral rights title search be necessary or beneficial?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Recording
Mineral Rights

Are mineral rights public record?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

2

Is there a mineral rights database?

There is not a public mineral rights database per se, but there are paid subscriptions

What does mineral rights convey mean?

A mineral rights conveyance is the legal process of transferring certain property or interests from one person to another, or Grantor to Grantee.  During the conveyance of the property, oftentimes the person transferring the property, the Grantor, will reserve certain rights attached to the property being conveyed.

2

How are mineral rights transferred?

Transferring mineral rights is the same thing as a conveyance.

Transferring (Conveying)
Mineral Rights

Mineral Rights &
Land Ownership

Do I own mineral rights on my land?

The best way to find out if you own mineral rights on your property is to  Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

2

Who owns mineral rights on my property?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

3

Are mineral rights considered real estate?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

4

Can you own mineral rights without owning the land?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

5

Are mineral rights real or personal property?

People also ask if mineral rights are tangible or intangible property. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

6

What do I need to know about mineral rights when buying land?
 

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Reserving & Severing
Mineral Rights

What does it mean if my mineral rights were severed? 

If you own the surface rights to an area of land it does not necessarily mean you own the minerals below that land.  In areas of the country where drilling or mining occurs, the ownership between the surface of the land and the minerals beneath it are often severed.  As a sole surface rights owner, this means you have no rights to the minerals, or the royalty rights attached to the minerals that are extracted from beneath your land.  

2

What does mineral rights reserved mean?

Reserving mineral rights occurs when an mineral owner reserves, a particular royalty rate or percentage, from what is produced and sold from the land. This can occur when an oil and gas lease is conveyed by the mineral owner, the Lessor, to an oil and gas company, the Lessee, of the mineral estate for a specific time frame, or “term”.

3

Can mineral rights be reserved by the Seller?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Leasing
Mineral Rights

What is a mineral rights lease? 

In Texas, an oil and gas lease is a conveyance by the mineral owner, the Lessor, to the oil and gas company, the Lessee, of the mineral estate for a specific time frame, or “term”, and thereby the oil company grants to the mineral owner, or the mineral owner reserves, a particular royalty rate or percentage, from what is produced and sold from the land.  

2

How do I find out mineral rights lease rates?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

3

What is an average oil lease price per acre?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Claim Unclaimed
Oil, Gas, and Mineral Royalties

I got a letter in the mail wanting to buy my minerals and royalties that I didn't know I owned. What's going on?

Mineral rights can be passed down from 

Mineral Rights
Taxes

How are mineral rights taxed?

Mineral rights can be passed down from 

2

Are inherited mineral rights taxable?

There is a chance in your lifetime that you will never receive as much royalty income as you might be able to receive by selling a portion of your mineral and royalty assets for a lump sum.  A lump sum payout can help eliminate debt, purchase a new home, cover college expenses, or some other large expense.  In most cases, the tax implications are better by taking a lump sum payment than continuing to pay ordinary income tax rates on your monthly royalty income and swapping it for long term capital gains (provided, you or the potential seller has owned those assets for longer than one year).

3

Where to report mineral rights income?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Mineral Rights &
1031 Exchange

If I own mineral rights can I do a 1031 Exchange? 

Absolutely! In fact, it's a smart move as it can be a way to defer your taxes. A 1031 Exchange allows the owner to sell a property and purchase another “like-kind” property of equal or greater value using the proceeds from the initial sale without paying taxes immediately.  These taxes are deferred until the future sale of the replacement property.  Mineral and royalty interests qualify for a Section 1031 Exchange opportunity as they are considered a “like-kind” exchange.

2

What is the process of a 1031 Exchange? How long does it take?

Before a 1031 Exchange is initiated, the Exchangor is responsible for marketing his property, securing a buyer and executing a Purchase and Sale Agreement or (PSA).  The Exchangor’s obligation (the PSA) to sell the Relinquished property is then assigned, or transferred, to the 1031 Exchange Intermediary (we get to Intermediaries below).  By the assignment, the 1031 Intermediary transfers the Relinquished property to the buyer.  The 1031 Intermediary then receives the money (exchange proceeds) from the buyer for the Relinquished property.

 

Within 45 days of the Relinquished property transfer, the Exchangor must identify Replacement property to acquire.  The Exchangor negotiates the purchase terms for the Replacement property with the seller and executes a PSA.  The Exchangor’s obligation, as shown by the PSA, to buy the Replacement property is then assigned, or transferred, to the 1031 Intermediary.  The assignment allows the 1031 Exchange Intermediary to use the exchange proceeds (in addition to other funds provided by the Exchangor if the property being acquired is of greater value) to purchase the Replacement property.

 

The 1031 Intermediary is mandated by IRC 1031 to transfer the Replacement property to the Exchangor within 180 days of the Relinquished property transfer.

Inheriting
Mineral Rights

Can mineral rights be inherited or willed? 

Mineral rights can be passed down from 

2

I've inherited some mineral rights, what do I need to do?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Mineral Rights
Appraisal

Do I need a mineral appraisal?

There are two types of mineral appraisals - current and retrospective.

2

How do you come up with a mineral price?

Mineral rights can be passed down from 

3

What information do you need to create an appraisal?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

4

How can I use the information from my appraisal?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Mineral Rights
Value

Are mineral rights worth anything?

Mineral rights can be passed down from 

2

How are mineral rights valued?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

3

Is there a mineral rights value calculator?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

4

What is the average price per acre for mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

5

Is there a mineral rights value rule of thumb?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

6

How much are mineral rights worth in Texas?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Selling
Mineral Rights

Should I keep my mineral rights? 

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

2

Why should I sell my mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

3

When should you sell mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

4

Keeping mineral rights when selling property. What do I need to know?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

5

What is the going rate for mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

6

Where to sell mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

7

What is a mineral rights auction?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

8

What is a mineral rights Purchase and Sale Agreement (PSA)?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Buying
Mineral Rights

Why should I buy mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

2

Who buys mineral rights?

Many companies buy mineral rights

3

When should you buy mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

4

Where can I buy mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

5

What is the going rate for mineral rights?

This is your Services Page. It's a great opportunity to provide information about the services you provide. Double click on the text box to start editing your content and make sure to add all the relevant details you want to share with site visitors.

Wheat Field

Let's Work Together

Have more questions particular to your situation? 

Email us

Schedule a complimentary consultation

Get started on your Mineral Appraisal