Your mineral rights may be your land's biggest hidden asset.
If you own land over an active or producing basin — Permian, Bakken, Marcellus, SCOOP/STACK — your mineral rights can be worth more than the surface. Signing bonuses range from a few hundred dollars to over $25,000 per acre.
How it works
- 1Verify ownership
Mineral rights are often severed from surface rights in older deeds. Pull your deed (or order a title search) to confirm what you actually own.
- 2Lease offer
An operator approaches you with a lease offer: signing bonus per acre + royalty percentage on production (typically 12.5%-25%) + 3-5 year primary term.
- 3Negotiate
Hire an oil & gas attorney. Key terms: bonus, royalty %, term, depth severance, Pugh clause, post-production cost deductions.
- 4Royalty payments
If the well produces, you get monthly royalty checks (gross production × royalty % × your acreage / total drilling unit acreage).
Deal structures
Most common. You keep ownership; operator gets right to drill for 3-5 years primary term, extended by production.
Sell your minerals for a lump sum. Trades long-term royalty upside for immediate certainty.
Sell a portion of future royalties (e.g., 50%) while keeping the rest. Niche but useful for diversification.
Frequently asked
Look at your deed for severance language. Order a title search if unclear — a one-time investment that can prevent costly mistakes.
Lease if you want long-term royalty income and believe in the basin. Sell if you want immediate cash, want to diversify, or your area is past peak production.
12.5% is the historical floor; 18.75%-25% is achievable in hot basins like the Permian. Always negotiate.
Generally no, unless your lease allows the operator to deduct post-production costs (transport, treating, marketing) from your royalty — try to negotiate a 'no deductions' clause.
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