What’s the Difference Between Mineral Rights and Royalty Rights?
Surface Rights, Mineral Rights, Royalty Rights, and Working Interest. These terms are becoming more prevalent in our day and age and starting to gain a lot more attention, especially by venture capitalists and institutional, private, and passive investors looking for a safe place to invest with a minimal amount of risk. These terms are often […]
Why is it so hard for buyers and sellers to agree on a price?
Calculating the Value of Mineral Rights Mineral buyers will try to entice mineral and royalty interest owners with a super fast and surprisingly simple way of valuing their assets with a “mineral and royalty calculator”. Do they really work and do they provide an accurate picture one can rely on? Sadly, no. The process […]
1031 Exchanges – Deferred Taxes, Anyone?
One way to defer capital gains tax on the sale of royalty or mineral interests is through a 1031 Exchange. 1031 refers to the section in the IRS code that allows mineral owners to defer capital gains taxes on the sale of their mineral or royalty rights when exchanged for another qualifying property. The 1031 […]
Hedging Inflation with Minerals and Royalties
Are mineral rights a good investment? Buying Mineral and Royalty Interests as a Hedge Against Inflation Many investors have started to think seriously about gobbling up any investment that could act as a hedge against inflation. It is a topic that should be on most minds, investor or not, at this juncture in time because […]
What is Working Interest?
When an oil and gas company, the Lessee, comes along and takes an oil and gas lease from a mineral owner it creates a new type of interest, the Lessee’s interest, or “working interest” as it is referred to. When the lease expires and/or the production ceases, the Lessee or operator plugs the well and […]
Understanding Net Mineral Acres and Net Royalty Acres
Welcome back, friends! I find myself explaining the differences between Net Mineral Acres (NMA) and Net Royalty Acres (NRA) to a lot of my clients and for good reason. These terms are used a lot in the industry yet most owners don’t know what they mean, if they own NMA or NRA, and how to […]