Can I sell my mineral rights even though they are currently under lease?
Yes, you can still sell your mineral interest no matter if it is leased, open, or producing. Mountain Front Resources purchases all types of mineral interests.
Can I sell a portion of my mineral interest but still retain part of my acreage?
Yes, you can sell a portion of your mineral interest while still retaining ownership of the balance of your acreage. This strategy appeals to many mineral owners. One good reason for selling a portion of minerals and retaining a portion would be diversification of assets as the proceeds from a partial mineral sale can be reinvested in other assets. Another common reason owners pursue a partial sell would be to raise money for expenses or family needs while still having an ownership interest in the minerals for the future.
How is a partial sell of mineral interest accomplished?
Because of the clarity and concise format our mineral deed provides, this is easily done. For example, if you own twenty (20.00) mineral acres but only want to sell ten (10.00) mineral acres, we will prepare the mineral deed to very clearly display that you are selling ten (10.00) mineral acres only. On our mineral deeds, the number of acres a mineral owner is selling is always listed specifically on the deed so that there are no concerns as to what is being transferred.
How long does the process normally take if I choose to sell my mineral interest?
Most of Mountain Front Resources, LLC’s mineral purchase transactions are completed within 2 to 4 weeks from the initial conversation with the owner.
How are the sale of minerals treated for tax purposes?
In general, the proceeds from the sale of mineral interests are usually taxed on a long-term capital gain basis. This is usually a significant savings over the income tax rate. However, please consult with your tax adviser for a detailed explanation on how the sale of your mineral interest will affect your taxes.
Why should I not sign a mineral deed that only states that I am selling “all rights, title, and interest?”
It is not wise to sign a mineral deed that does not state how many acres you are selling and simply says you are selling all rights, title, and interest. Let’s say you believed you owned twenty (20.00) mineral acres in a section and someone approached you to purchase the acreage. Next, after they examined the title, let’s assume they told you all you owned was fifteen (15.00) mineral acres and they subsequently provided you a mineral deed to sign that stated you were selling all rights, title, and interest in the section and there was no mention anywhere on the deed of the number of acres being sold. If you sign that mineral deed and they file it of record with the county, you have transferred everything you own in that section. If you did indeed own twenty (20.00) acres in the section, you no longer have the remaining five (5.00) acres. It is not advisable to sign an all rights, title, and interest mineral deed when selling your minerals.
My grandparents told me never to sell my mineral rights. Why should I consider selling?
Mineral rights are an asset and the primary purpose of an asset is to generate a return or deliver some measurable good for the owner. Many owners hold on to their mineral rights just because that’s what they have always been told to do. That is not always the best idea. When grandparents and parents told younger generations in the past not to ever sell mineral rights, many times prices were nothing close to the level they are at today. If selling your mineral rights would improve your standard of living, payoff mounting debts, or help a family member that is in a financial bind, then it should definitely be a consideration. Mineral owners need to know that with the prices being paid for mineral rights in many areas in today’s oil and gas environment, it may be several years, if ever, that a mineral owner would realize the same amount of money from their minerals through either production or lease bonuses or both. Because Mountain Front Resources, LLC has a diversified portfolio of mineral interests in various states, we are in a better position to buy mineral rights that may take a long time to payout.