Selling mineral rights

Do you live on a property rich in minerals, oil or gas? If so, you might consider selling your mineral rights. Mineral rights give a person the authority to access and mine all of the minerals below the surface of a property. According to The Mineral Auction, selling your rights is a major decision, and you should understand all of your options for making a profit off of these rights.

The two modes of making an income from mineral rights are selling or leasing these rights. The main difference lies in whether or not you want an immediate payout or you’re willing to play the long game by hoping to make more money from developing the land. In order to get the best deal possible, The Mineral Auction recommends hiring a professional broker to represent you.

There are a number of reasons why someone might put their mineral rights up for sale. Some people want to have more liquidity while others look to the favorable tax savings. Regardless of your reason for leasing or selling your mineral rights, brokerages like The Mineral Auction are available to help you get the best price from your mineral rights without a lot of effort.

In recent news, a North Dakota family is ecstatic about the North Dakota Supreme Court ruling that said the North Dakota Board of University and School Lands did not have mineral rights to the Wilkinson family land. The Wilkinson family argued that North Dakota took their “mineral rights from property acquired by the federal government for the construction of the Garrison Dam” and had documentation going back more than 80 years to prove that the state did not own these rights. Furthermore, the Supreme Court upheld recent legislation clarifying who has mineral rights under a man-made lake.

Attorney General Wayne Stenehjem explains that “The Supreme Court’s decision is not wholly unexpected, given that the Legislature took action to require a review survey of the historical ordinary high water mark of the Missouri River bed channel by the Department of Mineral Resources while this case was still before the court.”

Unfortunately, the family spent around $400,000 on legal costs to fight the state and two oil companies. Jon Patch, a Wilkinson grandson, explains that this ruling supports private property rights.

As the Director of the Department of Mineral Resources Lynn Helms explains, “The Wilkinson case illustrates how complex these cases are and why the Legislature decided to get involved.”

This Supreme Court decision also affected Edward P. Lynch, a neighbor of the Wilkinsons. While the Supreme Court did agree that the state had made “an unconstitutional land grab,” the upper court did rule that the state would have to compensate both the Lynchs and Wilkinsons for their mineral rights.

Mineral rights are an excellent asset to have. If you have mineral rights, you have the option of either selling or leasing them to oil and gas companies for further development. The recent North Dakota Supreme Court ruling upheld private property rights and had been watched by a number of oil and gas companies as well as states.