Buying Mineral Rights From Non-Profits
We buy oil and gas royalties and mineral rights throughout the United States.
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Why Mineral Rights are a Burden for Non-Profits
Many non-profits have a portfolio of mineral rights, which were donated by well-meaning supporters over a period of time. Although the idea of a steady (albeit declining) revenue may be attractive, many non-profits find that they lack the expertise, time, and desire to acquire and manage mineral rights.
Some non-profit organizations are large enough to have a whole department dedicated to mineral management, while others outsource the task.
Many small and mid-size non-profits opt to liquidate the mineral rights so they can focus on their core mission.
These are some of the main reasons that churches, religious orginizations and non-profits choose to liquidate donated mineral rights:
- Lack of mineral management expertise.
- Requires significant time to acquire and manage.
- Frequent need for costly legal services.
- Distracts from the non-profit’s core mission.
- Lack of bandwidth/resources to deal with minerals
How to Donate or Sell to Blue Mesa Minerals
Blue Mesa Minerals would be happy to relieve non-profits from the burden of owning mineral rights. We purchase many mineral rights 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, so you can dedicate all your time and resources to your core mission.
Our 4-Step Process
We won’t pressure you to sell your mineral rights. We are here to give you information so you can make an informed decision.
1. Inquire About Donating or Request an Offer
Request an offer. We we’ll be happy to evaluate your mineral rights and present you with an offer.
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.
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.
Two Ways for Non-Profits to Liquidate Mineral Rights
Donate Mineral Rights
The fastest and easiest way to liquidate low-value mineral rights is to donate them to Blue Mesa Minerals. We aim to provide a turn-key solution to take mineral rights off your hands with minimal effort on your part. We accept 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.
Sell Mineral Rights
Blue Mesa Minerals buys oil and gas mineral rights throughout the United States. We would be happy to evaluate your mineral portfolio and potentially extend an offer. We work with multiple trusts and non-profits and can acquire minerals in bulk or in a one-off scenario (as they are donated or bequeathed to your organization).
Mineral Sale or Donation Timeframe
How long does it take to donate or sell mineral rights?
The amount of time it takes to sell or donate mineral rights depends on who you sell or donate them to. Sometimes larger companies have a long process, and it can take months to sell or donate your mineral rights (especially if there are title issues that must be resolved first).
Blue Mesa Minerals can usually close on donated minerals in one to two weeks.
Portfolio vs On-Demand
How long does it take to donate or sell mineral rights?
Blue Mesa Minerals can take mineral rights off your place in bulk or in a one-off scenario (as they are donated to your non-profit).
Bulk:
We can acquire your entire mineral portfolio with minimal effort on your part. We will do the research, valuation, document preparation, and closing.
One-Off:
We can acquire minerals as they are donated to your organization. Simply notify us of your new donation, provide a bit of information, and we can take care of the rest.
What Documentation is Needed?
How long does it take to donate or sell mineral rights?
In order to sell or donate your mineral rights, you need documentation about the minerals. The most helpful documentation includes royalty statements, property deeds, probate documents, oil and gas leases, and tax bills.
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 get the necessary documents (or we can work around it).
Types of Mineral Rights We Acquire
Blue Mesa Minerals buys mineral interest (MI), royalty interest (RI), non-participating royalty interest (NPRI), or overriding royalty interest (ORRI). The only type of mineral rights that we don’t buy is working interest (WI). We acquire mineral rights from individuals, family trusts, and non-profit organizations that would rather focus on their core mission rather than mineral management.
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.
Where We Buy Mineral Rights
We buy both producing and non-producing minerals in all oil and gas states. However, we are especially interested in Texas and Kansas mineral rights.
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We even buy minerals in more obscure states, such as Michigan and Illinois, which produce a very little oil and gas compared to other states.
How We Value Mineral Rights
There are many factors that play into the value of mineral rights. These include location, producing vs. non-producing properties, current oil and gas prices, well production figures, lease terms, and even the operator of the well or wells. We also look at the risks of buying and owning minerals that you are interested in selling.
Location
Minerals in the hottest shale plays are more valuable than those in older fields with conventional wells.
Producing vs. Non-Producing
Producing minerals are often worth more than non-producing minerals because they are generating revenue.
Oil & Gas Prices
When oil and gas prices drop, revenue drops, and sometimes operators are unable to continue operating the well.
Production
Highly productive wells (and off-set wells) can increase the value of your minerals.
Lease Terms
Favorable lease terms (such as a 25% royalty reservation) positively impact the value of the leased minerals.
Operator
A small number of operators are unethical, and their reputation automatically devalues your minerals.
Why Sell?
Why People Sell Their Mineral Rights
I am putting my affairs in order. I don’t want to burden my kids with the hassle of transferring ownership and managing small mineral rights. When my sister passed away, my niece and nephew had to hire an attorney to help them with the minerals. I don’t want my kids to go through that.
I inherited my mineral rights so they were sentimental, but I don’t really want to bother with managing them and filing extra tax returns. I decided to sell and use the money as a down payment on my house.
I had no idea how fast the oil production would decline. My checks are only 20% of what they were a few years ago. I should have sold my mineral rights when the wells were brand new and still generating huge royalties.
My oil wells have been producing for decades and the reserves are almost depleted. Once the wells are plugged, the value will be significantly lower. I’d rather cash out now.
I inherited mineral rights, but don’t want to be involved with fracking and fossil fuels. I would prefer to support renewable energy and do my part to reverse climate change.
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Frequently Asked Questions (FAQ)
How Long does it take to sell my mineral rights?
It depends. We can often provide an offer within a few days and close in a week, but that depends where the minerals are located and how easy it is to verify a clean title. In some areas, records are online and we can move quickly. Other areas require that title records be sent via mail. In some cases there is a title defect that must be corrected before we can close.
The bottom line is that we try our best to close within a week or two. It rarely takes longer and sometimes, we can close in a matter of days – especaially in cases where the mineral owner is near death and the family needs to get the minerals out of their estate to avoide costly probate proceedings.
Do all mineral rights lose value over time?
Yes. Oil and gas are finite resources, and all petroleum reservoirs will eventually be depleted, some faster than others. Additional wells can temporarily increase royalty income. However, as technology advances and operators pull oil and gas from the ground faster, decline curves accelerate, shortening the productive life of a well.
Many mineral owners choose to sell their minerals while the value is still high. That money can be invested in other ways, used to improve your lifestyle (new car, new house, remodel, vacation, wedding, solar panels, or any number of other options).
What raises the value of my mineral rights?
The following factors will increase the value of your mineral rights:
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- Clear title
- Permitted wells onsite
- Newer wells (but not too new)
- Flatter decline curve
- Favorable lease terms
- High oil and gas prices
- Operator with a good reputation
- Potential for additional wells
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What lowers the value of my mineral rights?
Here are some of the following factors that can decrease the value of your mineral rights:
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- Title Problems
- Non-producing minerals
- Property that is held by production (HBP) by low-producing wells
- Leases that hold excessive non-producing acreage
- Steep decline curves
- Poor offset production (for non-producing properties)
- Low oil and gas prices
Operator with a bad reputation - Leases that allow operators to have free use of oil and gas
- Poor economy or recession
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I'm not sure I want to sell everything. Can I sell part of my mineral rights?
Absolutely. You can sell any percentage of your mineral rights (it is common to sell 50%). You can even sell the royalty interest and keep your mineral interest. Selling only the royalty interest is a way to get a lump sum of money now and still keep the mineral interest in your family.