Lower taxes now and in the future
Many of our mineral sellers tell us that they are choosing to sell their mineral interests, so that they don’t have to deal with the extra work of record keeping and filing taxes on the income received every year. In addition to the Federal Income Tax royalty revenues incur each year, you could also experience a Severance Tax and Ad Valorem Tax. Based on the mineral volume or value, most oil and gas producing states impose a Severance Tax to mineral producers and anyone with royalty interest for extracting a nonrenewable resource.
Receive a quick, lump sum cash payment for the valuation of you mineral estate
The cash can be used to pay off debt, finance college, save for your retirement, invest – however you want to use it. Overtime, depleting oil & gas interests can eventually become worthless. To benefit from the current value of your royalties and capitalize on high commodity prices today, contact Momentum to receive an immediate cash payment. By selling us your rights, you can use that cash lump sum to invest in assets that are far likelier to appreciate (real estate, bonds, etc.)
Eliminate the uncertainty of future royalty streams
You won’t be at the mercy of market changes or the decisions of the production company. Mineral rights owners experience uncertainty in valuing the long-term returns to be gained from holding onto mineral rights. The value of your royalties are often out of your control, so it can be difficult to plan for your financial future. Selling Momentum your mineral rights and royalties is a fast, reliable way to be certain of your financial assets.
Easy step-by-step process for how to sell your mineral rights allows for a hassle-free experience. After learning more about your rights or royalties, the land and the current market value, our experts will offer you a fair appraisal and close quickly so that you can receive your lump sum.
Frequently Asked Questions
A non-participating royalty interest owner has a right to all or a portion of the royalty from gross production, but does not have the right to execute a lease, receive a bonus or any delay rentals. An NPRI owner also does not have the right to produce the minerals by himself, and they are not responsible for the operational costs associated with production or drilling. An NPRI has fewer rights than a ‘regular’ mineral rights owner as they do not have the right to make decisions related to the execution of leases. Other mineral rights owners generally participate in at least one of the previously mentioned activities.
There are several situations when creating or assigning an NPRI may be appropriate. One such example is allocating inheritance. NPRI’s can be assigned as inheritance so that the receiver benefits from a steady stream of income from the royalties, but does not have to deal with negotiations of leases or make decisions concerning the wells. An NPRI can also be helpful in negotiations during land transactions. A seller of the land may reserve the mineral rights but assign a portion of the royalties to the buyer by using a NPRI. This way, the buyer can also benefit from future production and drilling but not partake in decision making. Conversely, if the buyer of the land is also acquiring the mineral rights, he or she may assign an NPRI to the seller as additional compensation.
If you own the surface rights to an area of land, it does not necessarily mean you own the minerals below that land. In areas of the country where drilling or mining occurs, the ownership between the surface of the land and the minerals beneath it are often severed. As solely a surface rights owner, this means you have no royalty rights to the minerals that are extracted from beneath your land. However, depending on the state, there are laws to help protect surface owners and make them feel more comfortable with oil companies drilling on their land.
If you are solely a mineral rights owner, you earn the royalties that come from extracting the minerals from the land in question. You do not have control over what occurs on the surface. As the mineral rights owner, you can sell, mine or produce the gas or oil below the surface. When it comes time to drill, you also have a right to as much of the land surface as is reasonably necessary to access the minerals, but there are some states with laws that protect surface owners’ rights.
Our Process
How to Sell Your Mineral Rights
Our team has trusted experience in appraising and purchasing Oil and Gas Minerals. Our customers can trust us in knowing they are receiving the best offer and the best service.
RECEIVING AN APPRAISAL
Easy step-by-step process for how to how to sell your mineral and royalty to allows for a hassle-free experience. After learning more about your rights or royalties, the land and the current market value, our experts will offer you a fair appraisal and close quickly so that you can receive your lump sum.
Gather Information
Typically includes recent check stubs, copies of leases, assignments or conveyances, and maps if you have them. A big portion of our initial mineral rights analysis can be done with your check stubs alone. This gives us a better understanding of what you own, where it is located and who is paying you.
Evaluation of Mineral/Royalty Rights
Once we’ve received the necessary data, we give the information to our evaluation team. Our landmen, engineers and geologists will review and analyze to determine the value of your interest.
Make an Offer
After all data is reviewed our team will be able to determine the best cost for both parties. A mutually agreed upon price is reached, our team will schedule a closing date and begin negotiating a purchase and sale agreement.
TIPS FOR SELLING YOUR MINERAL RIGHTS
- Have your documentation (deed, lease agreement, maps, division order, royalty check stubs, etc.)
- Let us help you. Whether it’s determining what rights you own, evaluating your mineral rights, or weighing the options of buying vs. leasing, use the experts we have on hand to help solve all your needs.
CALL TODAY or REQUEST AN OFFER to find out more about how our process works and for a mineral rights appraisal.