Natural Gas Mineral Rights Explained

Here at H&M Land and Mineral, we know all there is about natural gas mineral rights. After all, we have been involved in the sale and purchasing of the rights for approximately 35+ years. Therefore, it isn’t exactly a foreign subject to us. Natural gas mineral rights reference the right of a property owner to sell or mine a mineral beneath a plot of land. Mineral rights owners then own a mineral estate of land.

The Definition of a Mineral Estate

A mineral estate may include such inorganic and organic substances as natural gas, oil, coal or precious metals. Some minerals are part of a surface estate and therefore do not meet the criteria of being a mineral estate. These minerals include such products as limestone, sand, gravel and even subsurface water.

Special Privileges

Mineral estates are distinguished from surface estates as a mineral estate allows a property owner to hold special natural gas mineral rights as well as the right to access hydrocarbon resources. Therefore, if you are a landowner who possesses natural gas mineral rights, you are also entitled to receive royalties and leasing privileges if you opt to sell a portion or all of the mineral estate.

Most countries will not recognize the natural gas mineral rights of property owners. Therefore, we know we are indeed lucky here at H&M Land and Mineral to avail property owners with the opportunity to sell their natural gas mineral rights to us. Landowners should review their mineral right holdings to make a determination as how to best optimize their rights and any related transactions. If you want to get the most for your money, you need to be well-versed in your rights in this respect.

A Fee Simple Interest

One of the basic types of mineral rights is a fee simple interest. A fee simple allows landowners to own anything that resides above or below a property’s surface. A landowner can choose to maintain his rights or sell them to another party. The mineral interest can also be traded, sold or transferred to another party. Once a landowner sells a piece of land with a mineral estate, he loses his mineral rights and holdings.

Typically, oil and gas companies prefer to lease mineral rights instead of extracting a mineral outright. However, the process is only facilitated if the company determines that a property meets the criteria for exploration. Extraction will take place if a drilling company finds a large amount of minerals to unearth. Landowners usually receive a royalty from the amount of minerals that are removed from their land.

Here at H&M Land and Mineral, we can help you see how best to optimize your resources in this regard. Every situation is different. Visit our website to learn more about how selling natural gas mineral rights may be in your best interest.

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    Author: Phineas Gray

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