Mineral rights can be a complicated topic. That’s why we want all our partners to best understand the nuances involved with mineral rights ownership. At its core, owning mineral rights means that someone has the legal ability to explore, extract, and profit from minerals below the surface of their land. However, depending on ownership type, folks could see vast variations in how much they can extract, where they can extract, who can manage extraction, and how much they can actually profit from their ownership.

Why Understanding the Differences is Important

If you’re interesting in selling your mineral rights or understanding their worth, contact the experts at Retama Minerals today.

Making an informed decision about how to handle the selling, operational management, and upkeep of your mineral rights could mean the difference between smooth, passive income and a bit of a headache. When looking into the different types of ownership, here are 5 factors that everyone should consider.

• Financial Implications
  Different rights come with different financial benefits and responsibilities. Knowing what you own (or what you’re buying) can make a huge difference in your revenue and liabilities.
• Decision Making
  Some mineral rights give you a say in how the resources are managed and extracted, while others do not. If you want control, it’s essential to know what type of rights you have.
• Property Value
  Mineral rights can significantly influence the value of a property. If you’re buying or selling land, it’s crucial to understand what rights come with it.
• Legal Implications
  The ownership and extraction of minerals comes with various legal obligations and potential disputes, especially if the rights are severed. Understanding your rights helps in navigating legal issues.
• Concern Management
  If you have concerns about the environment or certain extraction methods, owning and understanding your rights can give you more control over how minerals are extracted from your property.

The Types of Mineral Rights Ownership

1. Full Mineral Rights
   This refers to the total ownership of all the minerals below the surface of a given property. If you own full mineral rights, you possess both the surface rights (the right to what’s on the surface of the land) and the rights to the minerals below. This allows you the most control and potential profit from any resources found and extracted.
   
   If you’re interested in selling your mineral rights, contact Retama Minerals for an expert quote to get the maximum value for your assets.
2. Split Estate (Severed Rights)
   This is where the surface rights and mineral rights are owned by separate entities. The owner of the mineral rights has the right to extract minerals, but they typically must provide compensation for any damage to the surface property. This can lead to potential disputes, as the interests of the surface owner and mineral rights owner might conflict.
3. Royalty Interest
   This refers to the rights of an individual or entity to receive a portion of the profits from the sale of the minerals, but they don’t have the right to make decisions regarding the lease or extraction of the minerals. If you have a royalty interest, you benefit financially when minerals are produced but don’t shoulder the costs of production.
4. Working or Operating Interest
   Those who have this type of ownership have a percentage of the costs associated with exploration, drilling, and production. They also get a share of the profits. This interest comes with potential rewards and risks. If the venture is profitable, they benefit, but they are also on the hook for a share of the costs.
5. Non-Participating Royalty Interest (NPRI)
   Owners with NPRI have a right to a portion of the royalties from mineral production. However, they don’t have any rights in leasing decisions or operations. Essentially, they get a share of profits but have no say in the production or leasing of the minerals.
6. Overriding Royalty Interest (ORRI)
   This is similar to NPRI, but it’s typically a temporary interest that expires after a certain event or time. Once it expires, it reverts to the working interest owner. ORRIs are often used as compensation in oil and gas ventures.

Your Mineral Ownership Type Matters

Mineral rights are an intricate party of property ownership that can have major financial and legal implications. Not understanding your rights as an owner could cause issues tomorrow or years down the road when a family member inherits stewardship of your land.

If you’re interested in selling, or further understanding your mineral rights, contact Retama Minerals to speak to an expert.