Consult a real estate lawyer to go through your draft contract before signing on the dotted lines
The demand for commodities such as oil and gas is increasing and a myriad of energy and mining companies are on the lookout for land and properties possessing minerals. With the prosperity of energy and mining companies, to buy mineral rights is undeniably emerging as a growing trend in the real estate market and energy/mining industry.
In the United States, we enjoy the right of possessing not only our property but also what lies underneath it. These rights are termed surface and mineral rights. Today, the word mineral has vast meaning as it encompasses metals and their ores, non metals like gypsum, limestone, coal, charcoal, peat, stone, gravel and oil as well as gas. With fuel and gas prices heading up, it has now become a lucrative proposition to buy mineral rights. Nevertheless, there are certain precautions that must be exercised before venturing into a deal with the intention of buying connected mineral rights.
A major problem is the severance clause. This implies that the property owner can sell the surface property exclusive of the minerals beneath it. Surface and mineral rights can therefore be traded separately. As a matter of fact, in a number of states the seller does not sell the mineral rights with the property at all. So when you are buying mineral rights, give due importance to this factor.
Before buying the mineral rights of a property, ensure that it has minerals of value beneath it. A geological survey conducted by a competent local geologist can assess this. Be conversant with the local laws governing minerals and their extraction in your area. A good oil and gas attorney should be able to advise you on the subject.
While buying mineral rights you have to know which minerals you have the right to extract, sell or lease. This is important because the owner may not like to sell you the mineral rights for all the minerals in one go. Finally, once you are satisfied with the viability of the project, its a good idea to consult a real estate lawyer to go through your draft contract before signing on the dotted lines.
Author Bio: www.royaltypurchaser.com specializes in purchasing of oil and gas royalties, oil lease royalties and mineral rights from estates and individuals. Also, buy mineral rights & oil and gas royalties in return of cash from parties in Texas, Oklahoma, Mineral rights New York, Louisiana, West Virginia, New Mexico, Michigan, California, Illinois, Montana, Canada and many other North American locations.
