Sell Mineral Rights Owned by a Trust

We buy oil and gas royalties and mineral rights owned by both family and institutional trusts.

Donate Your Mineral Rights

Why Trusts Sell Mineral Rights

Invariably, there comes a time when trusts must liquidate the assets and distribute the proceeds to the beneficiaries. This usually happens when the trustee passes away, but can also happen for estate (and eldercare) planning reasons, or because the mineral rights need to be sold while they still hold value.

These are some of the reasons mineral rights are liquidated from trusts:

  • The Trustee passed away so the assets must be sold and the proceeds distributed to the beneficiaries.
  • Mineral rights are too small to logically be distributed among beneficiaries.
  • Estate planning and elder care purposes.
  • Mineral rights are not producing much, and it’s better to sell before they stop producing.
  • The trust assets do not produce enough income to support the trust management fees.
oil and gas producing states map

Two Ways for Trusts to Liquidate Mineral Rights

 

Sell Mineral Rights

Blue Mesa Minerals buys oil and gas mineral rights throughout the United States. We would be happy to evaluate the trust’s mineral rights and potentially extend an offer. We aim to provide a turn-key solution to acquire mineral rights with minimal effort on your part. We work with individuals, family and institutional trusts, and non-profits to liquidate their mineral rights. We are not brokers or flippers, so we keep what we buy.

Donate Mineral Rights

Not all mineral rights have significant value. The value of mineral rights depends on 7 factors, and it can be difficult to sell low-value minerals. Rather than spending weeks or months trying to get an minimal offer, you can donate these minerals. We accept donations of hard-to-sell mineral rights, including small (or even tiny) minerals, non-producing minerals, minimally producing minerals, mineral rights in unproductive areas, minerals with title issues, and more.

How to Sell to Blue Mesa Minerals

Blue Mesa Minerals would be happy to make an offer and acquire your mineral rights. We purchase mineral rights from individuals and trusts, but also accept donations of non-producing, minimally-producing, and low-value mineral rights and even those with title issues) that are nearly impossible to sell. Mineral management can be a time and money sink. We can take most mineral rights off your hands in a timely manner.

Our 4-Step Process

We would be delighted to acquire mineral rights owned by individuals or trusts.

The only types of mineral right we do not accept are Working Interests (WI) and those with too high of a debt burden (tax lien, mortgage, etc).

We don’t mind putting in the work to research your minerals, draft deeds, pay the recording fees, and transfer the ownership. We do this every day and welcome each new property into our portfolio (we don’t flip minerals).

1. Request an Offer

Request an offer.  We we’ll be happy to evaluate your mineral rights and present you with an offer.

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2. Submit Supporting Documents

Send us the last few months of royalty statements and any supporting documents (leases, deeds, division orders etc.).

3. Review and Accept Offer

We will review and appraise your mineral rights and provide you with a competitive offer.

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4. Sign Deed and Receive Payment

Once we agree on a price, a closing date will be scheduled. You will sign and notarize the document. When we receive the paperwork, we will immediately wire the funds.

Types of Mineral Rights That We Acquire

We accept donations of mineral interest (MI), royalty interest (RI), non-participating royalty interest (NPRI), or overriding royalty interest (ORRI).

Mineral Interest (MI)

Mineral Interest owners have the right to explore, develop, and produce the minerals below the surface of a tract of land, including the right to enter into a lease.

Royalty Interest (RI)

Royalty Interest includes the right to receive revenue from well production, without the obligation to pay for drilling, operating, or plugging expenses.

Non-Participating Royalty Interest (NPRI)

Non-Participating Royalty Interest (NPRI) includes rights to oil and gas production revenue but no rights to enter into a lease.

Overriding Royalty Interest (ORRI)

Overriding Royalty Interest is an interest in the proceeds from the sale of minerals rather than an interest in the actual minerals. ORRIs are also called overrides.

Conveying Mineral Rights from a Trust

Mineral rights owned by a trust can be conveyed (usually with a deed or assignment) to another party.  If the mineral rights are divided among the beneficiaries, the Trust will need to hire an attorney to create the conveyance.

If the mineral rights are sold, the buyer will create the deed at the buyer’s expense.  Typically, the proceeds from the sale of mineral rights would be divided among the beneficiaries according to the trust agreement.

ORRI assinment example

What Documentation is Needed?

 

In order to sell or donate trust-owned mineral rights, you need documentation about the minerals.

Any of the following documents can help us figure out what you own and how to properly draft the deed:

  • Royalty Statement
  • Mineral Deeds
  • Oil & Gas Leases
  • Probate Documents
  • Ad Valorem Tax Bills

Don’t have documentation? Don’t worry – we can either help you get the documents or locate them ourselves (or we can work around the limitations).

Selling Mineral Rights from a Trust FAQs

It’s very common for trusts to divest the oil and gas royalties and mineral rights.

Who Decides if a Trust Sells the Mineral Rights?

The decision to sell mineral rights owned by a trust resides within the trustee (or co-trustees).  Minerals are conveyed by the Trustee and the trustee will sign the conveyance instrument.  

Should we divided the minerals among beneficiaries or sell?

When a trust closes and liquidates the assets, the trustee must decide if the assets will be split among the beneficiaries or sold to another party.  If the mineral rights are small, it may not make sense to divide them among the beneficiaries, particularly if it just obligates the new owners to a management and tax burden.  

What happens if a beneficiary disagrees with the decision to sell?

The decision to sell the trust-owned mineral rights resides with the trustee (or co-trustees).  Even if beneficiaries disagree, the trustee can still sell the mineral rights if the decision aligns with the terms of the trust and the fiduciary duty of the Trustee.

How does a Trust Determine the Value of Mineral Rights?

If the mineral rights are valuable (i.e., the royalty checks are high), the trust may want to get a formal mineral appraisal, which could cost between $1,000 and $50,000.  Getting a formal appraisal for small mineral rights may not be worthwhile.  

How are proceeds from the sale distributed?

Proceeds are distributed according to the terms of the trust agreement. This could be in equal shares, specific proportions, or as otherwise stipulated in the trust document.

Can a Trustee reinvest the proceeds from the sale of mineral rights?

Yes, the trustee can reinvest the proceeds into other assets, as guided by the trust’s investment policy and objectives.