Who Owns the Mineral Rights on Your Property?
By Space Coast Daily // June 25, 2021
Mineral rights give access to the owner over anything that lies beneath the surface in a piece of land they have a claim on. If a property owner gets a land piece and later discovers a resource or mineral, they fully control the mineral resource.
Mineral rights are subdivided into surface rights, mineral rights, royalty rights, and oil and gas rights. If an individual owns the property and has no interest in exploring the minerals themselves, they can delegate their mineral rights to other individuals.
If an individual is prospecting a mineral and traces it to your background, you have the power to sell your mineral rights to the individual.
Therefore any taxes or responsibilities that come with the person interested in mineral exploitation fall on their laps while you enjoy the privileges of owning the piece of property. You can agree with your lawyer on the compensation according to the mineral’s value or not.
Property ownership and mineral rights
Citizens own all rights to buying property in the USA. Different privileges depend on the states, and both surface rights and mineral rights matter primarily. In some states, the property owner has rights to groundwater, while some groundwater rights may be convoluted to even the property owner.
However, the only way to explore any resource is ownership of the mineral rights. Non-citizens from the US can also be allowed to own property, but the process is easier to follow through when you have cash in hand.
As a non-citizen, you qualify to sell your mineral right if you fully paid a mortgage loan to purchase this property. Lenders don’t get rights over anything concerning the property as long as it has higher authority.
Selling your mineral rights is dependent on whether you give both surface and mineral rights to one individual or different ones. There are three ways to dispatch rights.
First, as a landowner, you may buy surface rights by purchasing the surface rights land and underground resource/mineral rights. Second, if you own property, you have the option to sell your mineral rights but retain the surface rights. Lastly, the property owner may sell the surface rights to one person and the mineral rights to another.
The mineral rights, however, have their limits. Licenses accompany any exploration by several grants that consider nearby environs and taxes. If the government is also prospecting, your mineral rights get stripped off, and it offers compensation.
They do this by providing rights to companies and investors if they can buy off the landowners. The fitting procedure in this situation is to involve the local attorney for guidance and the best compensation offers.
Profiting from mineral rights
If you are not sure to sell your mineral rights, the other option is to lease your mineral rights for a specific period. The leasing can be divided into continuous payments and also receive the bonus before the exploitation begins.
The local attorney will guide you on the process and maximizing your mineral rights. If the company can provide a way to profit from both surface and mineral rights, then the owner profits from surface rights. It is your call to determine whether the invasion of space is worth your property. Education on the history of area mineral exploration would be an excellent place to start.
If you purchased property before confirming who owned the mineral rights, check always to see if they can sell these rights to you. Rights to resource exploration may not be valuable to you, but the ability to dell your mineral rights is an excellent source of passive income, and must you must sell your rights.
However, if the person gives n offer to you and includes the mineral rights as a selling point, you can forfeit it and buy only surface rights as a bargaining point depending on your package.
The only disadvantage to owning mineral rights is mining oil and gas. To sell your rights, you will have to adhere to taxes associated with oil and gas. Numerous people in business will take advantage of you, like selling cheap deals but know that you must always reject the first offer.
There is always better knowledge to understand. Consulting a reservoir engineer or geologist will help you see the worth of your ores and how much you can sell your rights. If you ever get the opportunity to profit from a resource in your property, take this opportunity and sell your mineral rights.