Have you wondered if it is better to sell or lease your mineral rights? In most cases, you will enjoy a much higher cash result from selling than from selling. lease. Not everyone has the same reasons for selling their mineral rights. Some can be sold for a lump sum or instant cash infusion; some make the decision to make better investments while others feel there are too many complex laws to consider. Regardless of the reason, you may have a higher chance of making more money selling than selling. lease.

If you are planning to own/lease or are unclear about the benefits of selling mineral rights, here are 5 benefits to consider:

1. Selling is more profitable than leasing:
Compared to leasing, industry experts believe selling is more beneficial for the following reasons:

• Receive 2 to 5 times the monetary benefit of selling vs. lease
• Collect cash infusion immediately instead of waiting many years for production
• Cover the risk of non-productive assets
• Hassle-free, eliminate bookkeeping and avoid tax and revenue implications
• Warn about the impact of fluctuations in oil and gas prices.

2. Knowledge of state laws:
If you are considering mineral extraction, you should have a good understanding of the mineral extraction laws in your state. Most states have laws governing mining and drilling activities that vary from state to state. In addition, there are also many legal issues to consider regarding the ownership and production of mineral rights.

3. Reputation and track record of the leasing company:
This is a very important consideration when leasing your mineral rights. Many leasing companies have no intention of drilling a well, leaving owners stranded with a delinquent lease they can’t escape. They may potentially receive little or no income during the lease. Even if drilling is done, it can sometimes take several years before the owner benefits, making it better to sell your rights and remove all risks associated with the property.

4. Understand the agreement:
In most transactions, the leasing company prepares a contract for you to sign. Leasing documents contain many clauses that are difficult for those who are not in the business to understand. There can be many potential pitfalls that landlords can get into by signing a bad lease. Uninformed mineral owners can make mistakes in these deals. Once again, the sale eliminates the risks associated with signing bad leases.

5. Rights of the owner of the surface:
In many cases, mineral rights and surface rights belong to two different parties. If you own both rights, you can benefit by selling the mineral rights but retaining ownership of the surface. Basic rights are provided by state laws. You will have enough protection for crops, livestock, buildings and personal property. This can help generate cash for current needs, but preserves surface ownership for the long term.

If you only own the minerals, you can sell them and avoid having to deal with any issues that arise with the owner of the surface.

Now that you know the benefits of selling mineral rights over the lease, make a wise and informed decision. If you sell your mineral rights, be sure to approach a reputable company that will help you close the deal at a fair price and without hassle.