Mineral Rights Types - Mineral Rights
Understanding mineral rights ownership and your ability to extract or lease minerals.
Understanding Mineral Rights Ownership
Learn about mineral rights ownership and your ability to extract, lease, or sell minerals beneath the surface.
Table of Contents
What Are Mineral Rights?
Key Definition: A person with mineral rights owns the minerals beneath the surface of a certain piece of land. The person often does not own the land surface, but has rights to using the land surface to extract minerals.
A person with mineral rights has the ability to sell or lease those rights to someone else – or hold onto the rights and bear the risk and responsibility for extracting the minerals. This gives you significant control over the development of your mineral assets.
Your Rights and Responsibilities
✅ What You Can Do
- •Extract minerals yourself (if you have the capability)
- •Lease your mineral rights to oil and gas companies
- •Sell your mineral rights to other parties
- •Receive royalties from production
⚠️ What You're Responsible For
- •Managing lease negotiations
- •Understanding production risks
- •Handling tax implications
- •Making decisions about development
Types of Mineral Rights
Working Interest
You own the right to develop and produce minerals
This gives you the most control but also the most responsibility and risk.
Non-Participating Royalty Interest
You receive royalties but don't participate in operations
Passive income without the risks of development.
Overriding Royalty Interest
You receive a percentage of production revenue
A royalty carved out of a working interest, typically for a specific term.
Common Minerals in the Rocky Mountain West
Oil and Natural Gas
The most valuable and commonly developed minerals in the region
Coal
Traditional energy source with established markets
Uranium
Nuclear fuel with growing demand for clean energy
Rare Earth Elements
Critical for technology and renewable energy applications
Questions to Consider
- •Do you want to manage the development process yourself?
- •Are you comfortable with the risks of mineral development?
- •Would you prefer a lump sum payment or ongoing royalties?
- •How will your heirs handle mineral rights management?
How We Can Help
We can help you understand your mineral rights, evaluate their value, and explore your options for selling or leasing.
Get a Free Consultation