As a property owner in Texas, you may have mineral rights on your land, especially if there is oil found below your land. Mineral rights can be profitable, but it is important to understand your rights in order to best protect your interests and make the most of them. Many landowners do not fully understand the productiveness and capacity of their mineral rights, especially if they inherited a family property. In this case, the other parties interested in leasing the land may have an advantage because they know more about the value of your rights.
Watch out for under-reporting and underpayment
Some oil companies do not deal honestly with landowners. They may under-report the productivity of wells on the land held by a mineral rights owner. In some cases, they may sell the output to their own subsidiaries before further trading in order to lower the amount owed to the rights holder. Getting a full understanding of your property and its capacity may help you to be a better-informed negotiator. In addition, people who newly come into mineral rights may not fully know the value of their land. They may not read the contract in full or may be unaware of the prices being paid to other mineral rights holders.
Research your land and its value
There are many ways to educate yourself about mineral rights and the value of your property. You may follow up on your land documents at the county courthouse or search for data on the Railroad Commission of Texas website, which deals with mineral rights.
Owning land with significant mineral rights can be a very profitable experience, especially if you have all the information you need to make a beneficial agreement with oil companies. A real estate attorney might provide knowledgeable advice and representation to protect your mineral rights.