Oil and gas mineral owners don’t have to look very far to sell their minerals—usually no further than their mailbox. For those who are interested in selling their minerals, the process seems fairly simple. You get a few offers, pick the highest one, sign some documents, and collect your money. But how do you know when oil and gas mineral sales go off the rails?
Unfortunately, the process isn’t as simple as many mineral buyers would have you believe. The selling process is fraught with risks that even the most experienced mineral owner can fall prey to. Falling into one of these pitfalls can have a serious and lasting impact years after the mineral sale takes place.
Don’t become a victim when oil and gas mineral sales go off the rails. Gold, Khourey & Turak has oil and gas attorneys that can help you with your mineral sale questions. Know what you’re getting into by asking yourself these three questions:
1. Should you sell your oil and gas mineral rights?
This is the first question I ask when mineral rights owners come into my office with the decision to sell. The answer is never an easy one and is dependent upon any number of factors. While market conditions play a large role in any determination, the most important factor by far is you and your family’s personal situation.
Selling your mineral rights might not be the best long-term financial decision for you, but it might be the best decision if you need money to pay off medical bills or send a child or grandchild to college. It could also be in your best interest to sell only some of your mineral rights. Whatever your situation, it’s important to make the decision that best benefits you.
2. Are you getting the best price for your mineral rights?
You’ve decided that selling your oil and gas mineral rights is the best decision for you. How do you know you’re getting top dollar?
Most mineral rights buyers are really brokers acting as middlemen between you and the actual buyer. These middlemen get a cut of the sale—meaning a percentage of the money owed to you. Even then, cutting out the middleman and dealing directly with buyers isn’t enough. Offers can vary widely from buyer to buyer for any number of reasons. That is why the oil and gas mineral rights attorneys at GKT work with a network of trusted, legitimate buyers to ensure that our clients receive the best available price.
3. Are your mineral sale documents protecting you?
You’ve made the decision to sell and you have the best price. All that’s left to do is sign, right? Surprisingly, this isn’t so. The usual sale will involve two separate but very important documents: the deed and the purchase and sale agreement. Improperly negotiated, these documents could lead to post-sale scenarios that leave you vulnerable to unfair lawsuits.
During the sales process, the buyer typically requires you, the seller, to warrant title to the minerals. If it turns out that you unknowingly don’t own the minerals, you could be sued. In the event the true owner of the minerals decides to sue the buyer, the buyer then may force you, according to the negotiated documents, to defend them and demand repayment of the money he or she paid you.
I have represented clients in these exact scenarios, and they occur more often than they should. Despite what sellers may be telling you, selling your oil and gas mineral rights is anything but a straightforward process. There is always a twist or a turn along the way.
If you’re interested in selling your minerals and looking for guidance, the oil and gas lawyers at GKT can assist you. We will help you make the right decision that is best for you; ensure you receive the best price; and, negotiate and draft your agreement documents in a way that protects you above all else. Our oil and gas experience and proven track record is unparalleled in the community, so you can rest easy knowing you and your family’s interests are our first priority. Call us at (304) 845-9750 to schedule your free consultation or live chat with us 24/7 at GKT.com.