What Is Involved In Selling Mineral Rights?

If you own mineral rights, especially in resource rich states like Colorado, North Dakota, Wyoming or Utah, and are interested in monetizing them, it is important to understand how the sale process works. Your first question will undoubtedly be, “What are my minerals worth?”, quickly followed by who is interested in buying them from me? Both of these questions can be readily answered by contacting The Petram Group. The sales process of mineral rights is very straight-forward, especially when compared to a typical real estate transaction.

Most transactions, when dealing with legitimate and competent buyers, will involve three basic steps: execute a contract, buyer performs due diligence, exchange deed for payment. That’s it!

Often, the due diligence phase of the transaction will take some time as it involves running a chain of title from today all the way back to when the property was deeded out from the U.S. government. Complications can be discovered that can either take significant amount of time to resolve or result in acreage adjustments. An experienced mineral buying company like The Petram Group will be able to help you resolve any potential title complications.

Before you agree to sell your minerals, an important question to ask is if you are selling to an end-buyer or a broker. Most parties will hold themselves out as buyers, but are actually acting as a middle-men between you and an end-buyer. These brokers earn their living by paying you less than what they turnaround and sell your minerals to the end buyer for. Obviously, it is advantageous for you as a seller to work directly with the end-buyer like TPG Energy, so you can capture the spread that would otherwise go to the broker.