Caution urged toward landowners who are considering selling their mineral rights instead of leasing them
Thursday, December 29, 2011
by Matt Warnock
The Vindicator reports that landowners run the risk of losing thousands of dollars in royalties as well as control over their land if they choose to sell their mineral rights to landmen instead of leasing them to energy companies. Most mineral-rights purchases are made with one-time payments of $2,500 an acre, which is "similar to the amount offered as bonus payments in oil and gas leases," the article said. As part of this sale, however, the seller also relinquishes all of his or her rights to royalties. For more read the full story here.