Information: First Time Investors New To Purchasing Mineral Right’s


SURFACE RIGHTS VS. MINERAL RIGHTS: WHAT’S THE DIFFERENCE?

Whether you have interest in selling your land or have been approached by a buyer, you should always know exactly what’s included in the transaction. When you own land, there are two levels of ownership that you may possess: surface rights and mineral rights. Do you know the difference?

 

What Are Surface Rights?

When you moved into your home, it was obvious that the physical structures — house, garage, barn, storage shed and yard were included. But, just how deep down into the soil does your actual ownership stretch? Sure, you can plant a garden or trees, but when it comes to drilling for oil and gas deep below your property, do you know who owns that space? It’s probably not you.

In some states where mineral deposits are plentiful, including Colorado, Louisiana, New Mexico, Oklahoma, Pennsylvania and Texas, a property owner’s rights are severed, or split into two distinct zones. This means you may own what’s on the surface of the land, but not what’s beneath the topsoil.

Surface rights specifically refer to the ownership of the surface of the land. This includes dwellings, buildings, the right to till the land for crops and even the ability to dig into the land to bury underground storage tanks, such as wells or septic systems.

Land that is owned under a surface rights contract may be sold, transferred or manipulated by the owner, within the guidelines of the governing city or county.

However, a person with surface rights to land cannot lease or sell their land to an oil or gas company for exploration and extraction purposes. This is because the owner doesn’t have legal ownership over the mineral deposits below their property.

What Are Mineral Rights?

Dig below the surface of a property and you’ll reach the zone where mineral rights take effect. In the United States, those with mineral rights ownership of land have the legal ability to explore, extract and sell naturally occurring deposits found beneath the land surface.

In addition to oil and gas, mineral rights typically allow landowners to also excavate for gold, silver, coal, copper, iron, uranium and scandium.

Like surface rights, mineral rights can be bought, leased and sold in accordance with the local and federal laws. Payments can be made outright or paid through a royalty system, based on what can be extracted from the land.

Both mineral and surface rights can also have co-ownership. If the surface rights owner wants to retain a partial stake in the mineral rights below their property, they have the option to only sell off a percentage of their mineral rights. Or, they can sell the mineral rights to multiple buyers, giving each a specific section of land.

Do Surface and Mineral Rights Overlap?

Now that we understand the two possible types of land ownership, it’s easy to wonder how they work together. Some property owners may own both surface and mineral rights on their property, which is known as a fee simple deed.

But, what if they don’t?

For example, if a person or company who owns the mineral rights to the land beneath your home wishes to drill for oil, can they place equipment in your yard — within the surface rights zone — that you legally own? Yes.

When selling mineral rights below the land in which you own the surface rights to, often a small area of the surface-level property is included in the transaction. This allows the mineral rights owner to set up a workspace for drilling rigs, outdoor storage areas, containment ponds, roads, fences and water treatment facilities that are necessary to safely access the mineral deposits below.

If you’re not sure what ownership you have of your land, it’s best to review your mortgage details or the property deed. Then, contact a lawyer who regularly works with landowners who buy and sell the rights to their property. Just be aware that there is no one-size-fits-all solution. The depth of land included in surface rights contracts and the specific minerals that are allowed to be extracted from a mineral rights parcel varies from state to state.

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Financial Investments with Oil and Gas


Oklahoma Attorney General Scott Pruitt testifying at a Jan. 18 confirmation hearing on his nomination as administrator of the U.S. Environmental Protection Agency.


With Pruitt Leading EPA, Oklahoma Oil Firm Gains Ground in Fight Against Regulation

Shortly after taking over as head of the U.S. Environmental Protection Agency, former Oklahoma Attorney General Scott Pruitt started a roll-back of Obama-era environmental regulations, an effort that has provided big benefits to one of his home state’s largest independent oil and gas companies, the New York Times reports. Pruitt has long maintained a close […] Full Story

Oklahoma Energy News & Companies, Oil & Gas | News OK

newsok.com/business/energy: Electricity customers of Oklahoma Gas and Electric Co. will see higher bills starting this … Oklahoma oilprices and drilling report for Monday, July 17, 2017.

OCC Oil and Gas Data Files – Oklahoma Corporation Commission

 

 

Quotes  by Adam Wilmoth Of  NewsOK :

All the executives boasted of reduced debt and improved techniques and processes designed to cut costs and increase oil and natural gas production. Executives from all four companies said they plan to boost drilling efforts in Oklahoma in 2017 and into the future.

Oklahoma Business Briefs: Oklahoma oil prices and drilling report for Monday, July 17, 2017Futures File: Grain, gasoline and geopolitics top commodity market weekly roundup

“These are the best wells we’ve drilled in our careers,” Jack Stark, Continental Resources’ president and chief operating officer, said of some of the company’s new wells in central Oklahoma.

Production costs have tumbled in the downturn to the point where producers in many cases are making more money today at $50 oil than they did three years ago when oil sold for $100 a barrel.

“Looking beyond 2017, we expect significant annual production growth over the next few years,” said John Hart, Continental Resources’ senior vice president and chief financial officer. “We should be able to grow production 20 percent annually and remain cash neutral at $60 to $65 oil.”   READ FULL ARTICLE

Some feel now that Trump has lifted the ban on Drilling for Oil and Gas, purchasing Mineral Right’s should be a winner for investing in 2017

CGG Land (U.S.) Inc. is conducting A 150 MILE (radius) 3D Seismic Mineral Surveys which Grady and Caddo counties of Oklahoma are included. The testing of over 150 miles in the two counties listed means production is starting to ramp up. Oil companies are looking to pump oil and gas. This is the best time to acquire the mineral rights for your financial future. The US Oil and Gas supplies are enormous and continues to be a vital commodity.

This investment can be passed down through generations, from your children, to your Grandchildren and to their children. Creates a monthly income and every 3 year lease re-sign, gets you a lump sum check.

Invest in Oil and Gas, and not just a promise note from the Stock exchange. We have already experienced the downfall of the stock market. Don’t wait for the next one before you broaden your portfolio. My Grandfather always told me “not to put all my eggs into one basket”.

Mineral owners survived the crash, the Scams and the Fraud. They still have what they brought to the table. Unfortunately, that is not true for the stocks. Owning mineral rights is a great way to invest in your future and financial security. Always has been and always will be.

 

UP FOR SALE

GRADY AND CADDO COUNTIES, OKLAHOMA

150 nma in Sec 31-Township 8-Range 8(Grady) and Section 25-Township 8-Range 9 (Caddo)

                                      Leased @ 3/16 (to Turner and Blue Ribbon)

                                     Starting Bid: $5500/ac

 

 

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