Leasing vs. Selling Mineral Rights in Texas

If you own the subsurface rights of your land, you might be curious about just how you can profit from the minerals underground. Most of the time, you’ll have two different options when it comes to working with an extraction company – either selling or leasing your mineral rights in Texas.

To help you better understand the difference between these two options and which is right for you, our Enfield Minerals team has created this guide.

Leasing Your Rights

When you lease your mineral rights, you’re basically signing an agreement that allows an oil or gas company to rent your land and drill on it for a set period of time, typically around three to five years. You’ll still keep all of your mineral rights when the lease expires, and if the company finds any valuable minerals you’ll be properly compensated.

However, there are some downsides to leasing your mineral rights. If no minerals are found, you won’t be making much money off of the lease other than a signing bonus. Also, your property might lose a portion of its value once the minerals have been completely extracted.

Selling Your Rights

The other option you have is to sell your mineral rights altogether. This completely transfers the rights to the oil or gas company you’re working with, but in return, you’ll receive a large cash sum. This is your simplest option if you’re looking to profit off your subsurface minerals because the payment is based on land and not the minerals found.

There are a few issues with selling your mineral rights, namely the fact that these minerals might go up in value over time after you’ve already been paid. You also likely won’t be able to profit off of any oil or gas that’s extracted.

Visit Enfield Minerals to Learn More

If you have any additional questions concerning how to sell or lease your mineral rights, contact our extraction company in Houston, TX, today. We are currently looking for property throughout Texas, Oklahoma, Louisiana, and other states.

Once you’ve decided on how to proceed, we’ll be happy to work out a deal. Come see us or schedule an appointment online