A few decades ago, drilling for oil and gas in Colorado was considered a threat to the landscape of properties. However, the development of the oil and gas industry combined with the frantic pace of the real estate market in Colorado caused the rapid sale of lands and their rights, both surface and mineral.
How To Buy Mineral Rights In Colorado
Lots of Colorado property owners know that mineral rights are different from land-owning rights meaning an individual could buy/own property while an oil/mining company or even an investor would own the rights to the minerals under the soil.
However, ownership of these rights is extremely fragmented as lots of properties usually have one or two ownership rights unrecorded or dozens and hundreds of rights owners can be associated with one small-sized ranch so you have to do proper due diligence on any property before you complete a purchase.
People who own surface rights are allowed to practice crop farming on the land as well as erect structures the way they like. You can also dig the land to set up your septic system or underground storage tanks.
If you as an owner of the land are not sure what the ownership of yours includes, you have to go check the title of the insurance policy or the vesting deeds. There you will find all the references to mineral rights in your land.
They should be open to providing you with the necessary information about the current owners and use of mineral rights. When you want to carry out this research, you have to go with a real estate lawyer with a speciality in such area matters.
This is because most times there are references that exclude the mineral rights or even remove insurance over some minerals. You have to thoroughly understand each clause before making any decision on any property.
You can also use the services of companies and individuals who specialize in researching such cases and submit a detailed report on the ownership of all associate rights. They will charge you based on your location of the property, time budget, the complexity of ownership, and constraints of the land mineral rights.
The state of Colorado declared in Public interest that mineral right holders foster and regulate the balanced, and responsible, production, development and uses of the natural resources in the state of Colorado in a manner that matches the protection of public health, welfare, and safety including protection of wildlife resources and our environment.
You can lease your mineral rights values to someone else to sell. This comes after they that if a mineral lease expires on a property, the property is said to be open and cost as much as $0 to a few hundred/acres.
If you want to buy mineral rights in Colorado, Pheasant Energy is one of the most trustworthy brokers with more than 75 years of experience. With our vast experience in the business, we are able to properly value your mineral rights, royalty interests and oil and gas royalties to the best affordable price.
You can wake up tomorrow and discover that your mineral rights cost absolutely nothing or that it could cost more in the future because the mineral became more valuable. The only sure thing about mineral rights is the cash at hand which makes it important to conduct a sale.
If you own mineral rights and want to sell them, you can come over to Pheasant. Our team can help you determine the value of the mineral rights before putting it on the market. Regardless of the reason for your sale, we will help you make the right decision in your situation.
Owning and leasing mineral rights in Colorado has become a lucrative business. With recent innovations in technology, areas that had little or no activity are now seeing wells spring up all over the land.
Buying a property without mineral rights is not a bad idea as you stand to gain as the owner if anytime soon, they decide to explore the mineral rights of your property. You can sell for whatever price you want which would compensate for all the times the land was lying around idle.
The only individuals who are sure of owning rights t their properties are those who inherited the properties from their family and even in this scenario, it is not 100% clear as many properties do have one clause or the other tied to the mineral rights.
Today we have 990 active oil and gas leases covering approximately 400,000 acres of mineral estate. These leases resulted in approximately $1.5 billion earned for trust beneficiaries -- Colorado schoolchildren -- in the past 15 years.
State leases do not have a pooling provision. In order to join state trust minerals with other minerals outside the lease (including a second state trust lease), a Communitization Agreement must be approved by the State Land Board. Communitization Agreement Guidelines and the Communitization Agreement form are available under Forms and Instructions.
A subsurface easement allows non-productive oil and gas wellbore to travel through the State Land Board's pore space. If you are drilling a well and your pipe will enter state trust lands (surface or mineral estate) you should contact our office. The contact for subsurface easements is Catie Stitt, Oil & Gas Specialist: catie.stitt@state.co.us or 303-866-3454 x 3326.
We publish a quarterly newsletter called Field Notes to share stories about our lessees, our land, and how our work helps fund public schools. Sign up to receive the newsletter, or read past issues. Check out featured stories about mineral extraction:
If you want to find a mineral rights owner in Colorado, you will likely need to hire a professional landman to research the records in the county courthouse where the minerals are located. This process can be very expensive and take a lot of time. Some counties have online records which can save time and money but will still require the services of a professional landman.
Our team uses advanced data to calculate the value of your mineral rights prior to and after drilling has occurred. We use a public data list and a secondary data list to provide you with the most accurate LandGate LandEstimate TM. If you want to calculate the value of your mineral rights, all you have to do is find your property on the map and claim ownership to see your amount per acre numbers.
Leased non-producing mineral rights refer to the fact that the mineral owner has granted an oil and gas lease, but the lessee (Oil and Gas Company) has not drilled a well that is producing. There will be no guarantee that a producing well will be drilled. And if not, the lease will eventually expire.
Leased producing mineral rights refer to the fact that the mineral owner has granted an oil and gas lease to a company that has successfully drilled a well. The mineral owners should be receiving a royalty check each month. The buyer will want to see a copy of a monthly pay stub to verify the net decimal interest of the mineral owner.
This means that the mineral rights owner is offering minerals for sale with the minerals not being subject to an oil and gas lease. Just because the minerals are not leased does not mean they are not valuable. On LandGate.com, we will know if there is any drilling activity in the area. Some mineral buyers prefer to buy unleased minerals. This will allow them to negotiate a lease with terms and provisions they prefer.
A buyer using the Contract to Buy and Sell Real Estate, approved by the Colorado Real Estate Commission, will notice an ALL CAPS disclaimer pertaining to mineral ownership and oil and gas activity.[1] The Contract warns buyers that the surface of a property may be owned separately from the minerals found below. This could mean that a third party might have a right to access the property to develop the mineral rights. It further warns that a surface use agreement could be recorded against a property and that oil and gas activity may occur on or adjacent to the property. The contract disclaimer concludes by advising the buyer to seek additional information regarding oil and gas activity on the property, but where exactly should a buyer go to get answers to the uncertainty surrounding oil and gas activity?
Do you own the mineral rights for your property? In Colorado, that is a very complex question that will likely require assistance from an attorney or other property expert. In Colorado, there is a difference between ownership of the surface rights of the property and ownership of the minerals beneath the property. For example, you may own the surface rights and own a house on the property, but someone else owns the minerals beneath it.
The process for determining who owns the mineral rights for a particular property is difficult and often time consuming. Sometimes, the title information from the closing of a home sale will include information regarding ownership of the mineral rights, but that information may not always be accurate and should be confirmed.
Yes. The general rule of thumb is that minerals run with the land so the mineral ownership and rights to existing royalty payments (if any) pass with the land to the new owner. A landowner must actively reserve or convey the minerals to avoid passing them to a new owner.
An owner can convey her property and reserve the mineral rights in just one deed, known as a reservation, or convey the mineral rights in one deed then convey the remaining surface and improvements in another one. The subsections below explain the difference between a reservation and a conveyance of minerals.
Just as there are different ways to retain your mineral rights, there are also different types of rights to reserve. The sub-sections below explore different reservation options available to an owner.
Up to this point, this article has contemplated retention of minerals in-place, which means the owner retains ownership of the minerals and all the rights associated therewith. An owner that retains the minerals in-place has the right to sign an oil and gas lease, permit entrance on the property to develop the minerals, and collect any royalties.
O is not required to reserve or convey 100%, or 8/8ths in oil and gas lingo, of the minerals. Assuming she owns 8/8ths of the interest, she may reserve any fraction of her mineral rights. O may reserve Â, and conveys the remaining  to B.
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