Why would an owner sell his or her mineral rights?
Mineral rights are often severed from surface ownership when a family farm or ranch is sold. The rights continue to pass from generation to generation, becoming more and more fractionalized as decades pass. At the same time, oil and gas exploration results in production on a very small percentage of non-leased or leased property throughout the United States. You may decide that your mineral rights are more valuable to you as available cash than as a piece of paper. The decision to sell may depend on the owner’s current needs, the number of net acres owned, the owner’s age, and many other considerations. For many owners, it makes sense to sell their mineral rights now and invest the proceeds in a more immediate need. Sellers have used their royalties to pay for vacations, invest in real estate, purchase vehicles, pay college tuitions, or even in some cases to retire mortgages or to retire altogether.
