The mineral rights of Oklahoma cover almost all of the abundant natural resources in the United States. Oklahoma is fifth in the country for unrefined petroleum generation. Oklahoma represents about 8% of the complete U.S. petroleum gas production. In 1927, Oklahoma became the most prominent oil-producing state in the world. With that, almost all properties in Oklahoma have mineral rights, and owners gain an advantage when they sell mineral rights in Oklahoma.
Understanding Mineral Rights in Oklahoma
In most instances, mineral estate or mineral rights can be complicated. The mineral rights of your property will include all-natural resources that form a part of the soil. These natural resources formed become useful, and it has a unique value; that is the reason why people sell mineral rights in Oklahoma.
The state of Oklahoma maintains a database of people who owns mineral rights, and it’s called the Oklahoma Mineral Owner Registry. Owners are not required by law to register, but some benefits come with registration, especially if you intend to sell your mineral rights. Oil companies who are looking for promising properties have access to the registry so they can quickly contact owners.
Selling vs. Leasing your Mineral Rights
Owners have the choice to sell their mineral rights to lease them. Here are some of the things you need to know if you’re selling or leasing your mineral rights.
- Owners who sell their mineral rights will receive the amount of their property’s value upfront.
- In most cases, owners will receive the cash value of their mineral rights regardless of the minerals that will be found in your property.
- Companies who lease your mineral rights will deplete the minerals in your property after the lease.
- Owners will also receive an upfront lump-sum amount, but royalties are not guaranteed.
Why Sell Your Mineral Rights
Selling mineral rights is beneficial to owners because of the high demand for oil and gas. Selling will have a significant financial impact on the owners. There are many reasons why owners choose to sell, and each seller is different. A large amount of money received may be used to pay mortgage, debts, or may be used to fund the education of your children.
Aside from that, here some of the reasons why you should consider selling your mineral rights:
- Lower taxes. Mineral rights owners are subject to pay an ample amount of taxes, and sometimes these can be a financial burden to the owners.
- Royalty streams are uncertain. Owners may find the idea of receiving royalties delightful, but this will not always be the case. The fee received depends on the minerals found on your land. Owners will be at the mercy of the oil company, and they decide on the value of the minerals found.
- Get cash to reinvest. A large amount of money received may be used to invest in more stable markets that generate stable earnings.
Depending on how you look at it, owning mineral rights can be beneficial; but it most cases selling it can be the best-case scenario. Every owner’s situation is unique, and selling your mineral right is a big decision. The important thing is to make a wise decision that will be advantageous to you as the owner.