selling mineral rights

How to Buy Mineral Rights & Royalties in the United States

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Mineral rights are defined as the property rights to exploit an area of land for the minerals that it harbors.  Buying mineral rights or royalties is a highly profitable investment if done correctly. We’ve created this quick guide to help you understand the purchasing process, however, the best way to learn about how to buy mineral rights or royalties in the United States would be to talk to an expert at Ranger Minerals.

Find Potential Mineral Rights Sellers

Finding the right seller for mineral rights or oil and gas royalties is often the hardest part of the process.  There are few resources, such as Mineral Owners, specifically for Texas that break down land by county available for oil and gas investment.  At Ranger Minerals, we have a strong portfolio of cash flow properties,

Make Offers

Once you have calculated the percentage of the royalty you would like to own, what’s next? Now you can begin to contact the mineral rights owner with offers to purchase.  Buying mineral rights can require a Marlon Brando-like proposition of an offer that cannot be refused. This is eue to the highly profitable nature of oil and gas royalties. If the acquisition is particularly high, the purchasing process may start with a declaration of interest, rather than a valued offer.  You can skip the hassle of finding and bargaining with mineral rights owners by working directly with Ranger Minerals.

Verify and Strike a Deal

The response rate for mineral rights and royalty offers is very low.  However, once you begin speaking with an owner, it is best practice to verify the revenue stream by asking for the past few months of royalty stubs.  Of course, if you are working with Ranger Minerals, you will not have to worry about a low response rate or verification, as each property is pre-vetted and our process is fully streamlined. If all looks well and good, draw up the contract and sign the agreement.

File the Paperwork

Once the deed is signed, the paperwork must be filed both with the local courthouse and the existing oil company.  If you are buying mineral rights independently, it is crucial to have the appropriate legal counsel to approve and verify the legitimacy of all of the paperwork.  Once everything is official, you should begin receiving royalty payments in as little as three months.

If you have further questions on how to buy mineral rights, feel free to reach out to us here. 

Ohio’s Shale Energy Industry Attracts $74B in Investment

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Total investment in Ohio’s resource-rich shale energy sector has reached $74 billion. It was since tracking began in 2011, according to a Cleveland State University study.

Prepared for JobsOhio, the report represents the most recent data available. It covers shale investment through the first half of 2018. It comes just weeks after IHS Markit released estimates that by 2040. The Utica and Marcellus shale region, of which Ohio is a significant part, will supply nearly half of all U.S. natural gas production.

The study from CSU’s Energy Policy Center at the Maxine Goodman Levin College of Urban Affairs. It was shown that drilling activity slowed but remained significant in Ohio from January to June 2018. During the first half of the year, investment in Ohio’s upstream, midstream, and downstream energy ecosystem totaled $4.6 billion, the study showed.

Upstream activities, such as drilling or royalties, accounted for more than $3.4 billion of this total. According to the Ohio Department of Natural Resources, 157 wells were listed as “drilled, drilling or producing” in Ohio. It is with Belmont, Monroe, and Jefferson counties represent the most active areas.

Investment continued in Ohio’s midstream assets. This include assets such as pipelines, processing plants, and storage, in the first six months of 2018. The investment included nearly $400 million worth of construction starts for processing plants, which represent the compression, dehydration and fractionation necessary in the processing of natural gas resources.

However, the period saw more limited investment in transmission lines, largely due to the recognition of the Nexus pipeline investment being attributed completely to the second half of 2017.

Read the full article here
Source: Construction Equipment Guide

If you have further questions, feel free to reach out to us here.