How to Utilize Minerals as a Surface Rights Owner?

investing in mineral rights

Investing in mineral rights is amassing a heap of interest around the globe, especially in the U.S. For the U.S. citizens, the property and the mineral right ownership come together. This is actually one of the rare countries where the citizens are provided with this facility to trade in mineral rights which are not declared as government property. Then why do people have to face otherwise? The reason is their ignorance towards getting a clear idea on the surface right and the mineral right separately.

Surface right is what exactly it sounds like. This is your right to own the surface of a land. You can use it for your purpose. Depending on the type of land you own, you also have the provision to develop the land according to your need and preference. Mineral right is all about underneath the surface. The right may be applied on your ownership to all the minerals present there. It may include coal, gas, copper, iron and any other. If you don’t invest in mineral rights separately, you will not own the control over it and you will have no right in these minerals.

If you are interested in mineral right ownership, you need to go through some points before investing in the land for it.

  • If the area is full of energy resources and you are willing to invest on the minerals, you need to know whether the sale includes both the surface and the mineral right or only the land.
  • It is not possible that the whole land has a plethora of all mineral underneath it. There are certain areas that must be with this quality. You have to find it out. There are several lists published on the mineral-rich areas. Decide your mineral to be traded on and get the latest list to make your mind.
  • You need to know about the profit at first. It is lame to keep on investing without a good return. Mineral rights give you options to get profits from it in two ways. You can sell them at a higher price after some years and invest the amount in another business. Or you can arrange for a recurring return. You can give it in a lease and get a royalty. For both the cases, you have to expose your mineral rights in front of large potential buyers, so that you can get the best deal. Both leasing and selling have pros and cons. Based on those, you have to decide on the most suited one for you.
  • If you don’t own a mineral right what would happen? The land still has its value as the minerals underneath it has to be transferred to someone who will trade in it. In that case, you can get benefits as the surface land-owner. You can claim the compensation as well for damage to your land for mining.
investing in mineral rights

You can get an organization to handle all the deals pertaining to mineral rights. It would make it easier for investing in mineral rights and also for getting benefits as a land-owner. Call Ten31 Minerals for more details, such as a hassle-free buying, selling or business process.