How to Buy Mineral Rights
Find out if the mineral rights are available for purchase., Research which minerals are considered the most lucrative., Find mineral rights that are for sale., Define which "mineral" is in the area where the property is located., Learn the specific...
Step-by-Step Guide
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Step 1: Find out if the mineral rights are available for purchase.
Go to the local county courthouse to research who owns the mineral rights for a particular piece of property.
The property’s deed might not include information about mineral rights, because states often record mineral rights ownership in a separate Mineral Rights deed book separate from the book recording surface rights.Transactions concerning mineral rights are generally a matter of public record, and you should be able to confirm ownership of these rights.
If you are buying "surface" property in an area known for potential mineral development, you will need to determine if the mineral rights have already been sold.
The buyer of a property should hire an attorney who can do this research. -
Step 2: Research which minerals are considered the most lucrative.
The top 5 in the world are oil and gas, gold, copper, diamonds, and coal.
In the U.S., oil and gas are the most prevalent minerals for mining.These ten states contain 80% of the oil and gas reserves in the U.S.:
Texas, North Dakota, Alaska, California, New Mexico, Oklahoma, Wyoming (oil only), Colorado (large deposits of coal as well), Utah and Louisiana.
A mineral that will be in high demand now and the near future is lithium, used in most electronics that require batteries.
Three countries have half the world's lithium deposits:
Argentina, Bolivia, and Chile., You should be able to find websites that list mineral rights for sale or for lease throughout the U.S. and Canada.
You may, however, need to subscribe to the service if you are a buyer.
Companies usually contact the property owner to purchase mineral rights after a geologist or other professional has a reason to believe that the desired mineral exist in the area. , Determine if the material is actually a mineral as defined by the state or federal government.
Although this may sound like a simple task, the definition may vary from state to state or from one situation to another.For example, in 2004 the United States Supreme Court ruled that sand and gravel are not considered minerals. , Each state abides by certain mining and drilling regulations that affect both surface and mineral property sales.
These laws are often similar with slight variations.
For example, "fracking," the mining of natural gas, is banned in New York state while it is permitted in Pennsylvania.
Hydrocarbons such as oil and natural gas are generally included under the term "mineral rights." Although laws governing mineral rights are usually uniform among regions, it's possible the laws governing mining and specific oil and gas regulations can vary greatly between states. -
Step 3: Find mineral rights that are for sale.
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Step 4: Define which "mineral" is in the area where the property is located.
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Step 5: Learn the specific state laws that govern the sale of mineral rights.
Detailed Guide
Go to the local county courthouse to research who owns the mineral rights for a particular piece of property.
The property’s deed might not include information about mineral rights, because states often record mineral rights ownership in a separate Mineral Rights deed book separate from the book recording surface rights.Transactions concerning mineral rights are generally a matter of public record, and you should be able to confirm ownership of these rights.
If you are buying "surface" property in an area known for potential mineral development, you will need to determine if the mineral rights have already been sold.
The buyer of a property should hire an attorney who can do this research.
The top 5 in the world are oil and gas, gold, copper, diamonds, and coal.
In the U.S., oil and gas are the most prevalent minerals for mining.These ten states contain 80% of the oil and gas reserves in the U.S.:
Texas, North Dakota, Alaska, California, New Mexico, Oklahoma, Wyoming (oil only), Colorado (large deposits of coal as well), Utah and Louisiana.
A mineral that will be in high demand now and the near future is lithium, used in most electronics that require batteries.
Three countries have half the world's lithium deposits:
Argentina, Bolivia, and Chile., You should be able to find websites that list mineral rights for sale or for lease throughout the U.S. and Canada.
You may, however, need to subscribe to the service if you are a buyer.
Companies usually contact the property owner to purchase mineral rights after a geologist or other professional has a reason to believe that the desired mineral exist in the area. , Determine if the material is actually a mineral as defined by the state or federal government.
Although this may sound like a simple task, the definition may vary from state to state or from one situation to another.For example, in 2004 the United States Supreme Court ruled that sand and gravel are not considered minerals. , Each state abides by certain mining and drilling regulations that affect both surface and mineral property sales.
These laws are often similar with slight variations.
For example, "fracking," the mining of natural gas, is banned in New York state while it is permitted in Pennsylvania.
Hydrocarbons such as oil and natural gas are generally included under the term "mineral rights." Although laws governing mineral rights are usually uniform among regions, it's possible the laws governing mining and specific oil and gas regulations can vary greatly between states.
About the Author
Frank Young
Creates helpful guides on lifestyle to inspire and educate readers.
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