Mineral Rights in Texas
The state of Texas is home to the largest number of mineral rights owners in the United States. With such a huge mass of land, mineral rights in Texas can be worth from as little as $50 per acre to upwards of $5,000 per acre. Obviously, the amount of minerals in the earth is going to be the number one factor in determining the value of minerals rights in Texas and elsewhere. However, In order to determine the mineral rights value of a plot of land in Texas, there are additional internal and external factors that come into play.
Mineral Rights History
Unlike in home buying, past transactions for purchasing mineral rights are not public record. This makes it difficult to track the value of specific mineral rights, and ultimately makes the value of mineral rights in Texas as much as the buyer is willing to pay. If the property is yet to produce mineral rights, a professional valuation must be done to determine the estimated production levels of the subsurface.
Exact Location of Mineral Rights in Texas
The location of your mineral rights within Texas plays a huge factor in valuation. Oil and gas companies look at the accessibility of the land as well as the proximity to other resources, such as water, in calculating the profitability of extracting minerals. Your mineral rights in Texas value will be influenced by which companies are operating in the area, by virtue of their specific lease terms for your property.
Producing vs. Non-Producing Mineral Rights
Producing mineral rights generate oil and gas royalties on a monthly basis. By already having an existing cash flow, producing mineral rights are going to be valued higher than non-producing mineral rights. That being said, non-producing mineral rights can still be worth a lot of value, as it has the potential to produce oil and gas royalties in the future.
There are also many factors that extend beyond Texas’s state lines that affect the price of mineral rights. Timing is by far the largest. The price of oil varies just like any other commodity, so the current dollar amount per barrel plays a large part in determining the mineral rights in Texas value. Although this is most apparent in producing mineral rights, long-term industry trends also affect mineral rights from land that is currently not producing.