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Started By
Message
O&G baws--do investment firms buy mineral rights?
Posted on 3/29/25 at 1:51 pm
Posted on 3/29/25 at 1:51 pm
Someone I know said they got called about selling their shares of mineral rights, im told a few others with differing share positions in the same group have already supposedly sold theirs to this same organization.
From what I understand, the person that was approached was under the impression that the "organization" is a major investment firms buying mineral rights from some sort of ETF.
Do they really.The individual im talking about is 100% sure that the others in the group had legitimate transactions and got paid.
From what I understand, the person that was approached was under the impression that the "organization" is a major investment firms buying mineral rights from some sort of ETF.
Do they really.The individual im talking about is 100% sure that the others in the group had legitimate transactions and got paid.
8
Posted on 3/29/25 at 1:53 pm to El Segundo Guy
Relatedly, do your mineral rights go all the way to the earths core?
Posted on 3/29/25 at 1:53 pm to El Segundo Guy
How else would an o&g company make money
Posted on 3/29/25 at 1:55 pm to El Segundo Guy
Yes
Posted on 3/29/25 at 1:58 pm to El Segundo Guy
I have a small piece of some minerals in an active area. Get calls and letters regularly from outfits wanting to buy. Some are brokers who could flip it to who knows, others are O&G companies that operate in the area and want to increase their percentage in a unit.
Posted on 3/29/25 at 1:58 pm to OysterPoBoy
quote:
Relatedly, do your mineral rights go all the way to the earths core?
And the Karman line?
Posted on 3/29/25 at 1:59 pm to El Segundo Guy
Yes. I know of some PE firms who offer limited partnership interests in a "pool" of mineral rights. You hold the investment for a period and the rights are sold at a profit. LP's share in those profits.
This is considered fairly speculative investing.
This is considered fairly speculative investing.
Posted on 3/29/25 at 2:01 pm to OysterPoBoy
quote:This is probably detailed in the original easement and probably has to abide by the state's property code.
Relatedly, do your mineral rights go all the way to the earths core?
Most of the time when you buy residential property, it does not include the mineral rights because the grantor of the deed (seller) never owned them in the first place.
This post was edited on 3/29/25 at 2:07 pm
Posted on 3/29/25 at 2:06 pm to OysterPoBoy
quote:“surface to China”, baw, sometimes.
Relatedly, do your mineral rights go all the way to the earths core?
Posted on 3/29/25 at 2:10 pm to OysterPoBoy
quote:
Relatedly, do your mineral rights go all the way to the earths core?
Yes and your surface rights go all the way into space
Posted on 3/29/25 at 2:55 pm to biglego
Short answer yes…
FYI
Originally all the way down but someone in the past may have sold particular depths .. fwiw if selling try to sell depths specific or zone with a little around it..
Much of the resource plays are the tight zones that produce oil and seeped into the preferred zones that would then flow on their own.. those reservoirs were considered conventional exploration and what we chased.. if you were fortunate and in the past ( 50 years ago…) you may have sold the conventional zone and not necessarily the other zones not considered valuable back then… now with new technology able to sell that stuff and now valued..
Most states have separated surface right from mineral rights.
As mentioned in different thread.. if you have a disposal zone that companies want to inject waste water in that is considered “damage” and the surface owner gets it ( usually x amount per barrel disposed)
Louisiana is one of the few states that do it right.. and why so many people in subdivision were given royalties
“In Louisiana, if mineral rights are not exercised (leased or actively mined) for 10 years, they may revert to the surface owner, a concept known as "prescription of nonuse”
Landmen are very sneaky and will try to include ridiculous “boundaries “ on the zone.. like surface to china.. also if they are paying surface rights for a pipeline they will have the track laid out and try to include way way out from the line to capture as much of the surface land as possible..
It is their job.. they make Gordon and Bart looks respectable..
FYI
Originally all the way down but someone in the past may have sold particular depths .. fwiw if selling try to sell depths specific or zone with a little around it..
Much of the resource plays are the tight zones that produce oil and seeped into the preferred zones that would then flow on their own.. those reservoirs were considered conventional exploration and what we chased.. if you were fortunate and in the past ( 50 years ago…) you may have sold the conventional zone and not necessarily the other zones not considered valuable back then… now with new technology able to sell that stuff and now valued..
Most states have separated surface right from mineral rights.
As mentioned in different thread.. if you have a disposal zone that companies want to inject waste water in that is considered “damage” and the surface owner gets it ( usually x amount per barrel disposed)
Louisiana is one of the few states that do it right.. and why so many people in subdivision were given royalties
“In Louisiana, if mineral rights are not exercised (leased or actively mined) for 10 years, they may revert to the surface owner, a concept known as "prescription of nonuse”
Landmen are very sneaky and will try to include ridiculous “boundaries “ on the zone.. like surface to china.. also if they are paying surface rights for a pipeline they will have the track laid out and try to include way way out from the line to capture as much of the surface land as possible..
It is their job.. they make Gordon and Bart looks respectable..
Posted on 3/29/25 at 2:59 pm to Thecoz
quote:leasing alone will not stop prescription.
In Louisiana, if mineral rights are not exercised (leased or actively mined) for 10 years, they may revert to the surface owner, a concept known as "prescription of nonuse”
Posted on 3/29/25 at 2:59 pm to El Segundo Guy
Uhhh yeah?
Posted on 3/29/25 at 3:00 pm to OysterPoBoy
quote:
Relatedly, do your mineral rights go all the way to the earths core?
Yeah but the size of the pie is quite small there.
Posted on 3/29/25 at 3:09 pm to White Bear
quote:
quote:
In Louisiana, if mineral rights are not exercised (leased or actively mined) for 10 years, they may revert to the surface owner, a concept known as "prescription of nonuse”
leasing alone will not stop prescription.
What about Texas?
Posted on 3/29/25 at 3:15 pm to Born to be a Tiger1
In Texas it is probably separate.. it was included at one time but unless you are king ranch someone probably separated them long time ago and has been handed down to kids and split to heck..they do not revert back.
Is Louisiana after ten years on non activity( building on op comment.. I believe you need to discover and start producing)… the minerals usually revert back to the surface owner.. makes it a lot easier to chase down minerals ownership .
Is Louisiana after ten years on non activity( building on op comment.. I believe you need to discover and start producing)… the minerals usually revert back to the surface owner.. makes it a lot easier to chase down minerals ownership .
This post was edited on 3/29/25 at 3:17 pm
Posted on 3/29/25 at 3:16 pm to Born to be a Tiger1
quote:prescription of nonuse does not exist in Tx.
What about Texas?
Posted on 3/29/25 at 3:20 pm to El Segundo Guy
They do…and unless you are some hard luck dude who needs anything you can get, don’t sell ! The majority of these offers are literally pennies on the dollar.
Posted on 3/29/25 at 3:27 pm to Thecoz
Thanks
Posted on 3/29/25 at 3:27 pm to White Bear
Thanks
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