- Selling your mineral rights can be a difficult decision. Maybe your mineral rights have been in your family for generations. You may have an emotional attachment to them. Maybe you have difficulty selling because conventional wisdom tells you not to. All of these reasons are valid, but circumstances are different for each person, and for some, selling is the best option.
Bigger Payout Upfront
Instead of waiting for your royalty checks to roll in, selling your interests would provide a lump sum payment up front. Divesting all or a portion of your interests could ease financial burdens, introduce new opportunities, or even give you the capital you need for a down payment on that house you’ve always wanted.
The paperwork and financial record keeping associated with owning oil and gas properties can be cumbersome and tedious for anyone not dedicated to this type of asset management. Selling one's oil and gas properties can eliminate the need for keeping up with all the information and documents necessary for mineral rights ownership.
Division of Interest
Although leaving mineral rights and royalties to your heirs may sound like the best solution, after being divided several times, the actual cash flow that your heirs may receive is trivial. However, they still hold all the responsibilities of any other mineral rights or royalty owner. Selling your interests would relieve you and your heirs from the obligation of transferring or maintaining the oil and gas property.
The oil and gas industry can be unpredictable and sometimes risky. Royalty checks can be sporadic and difficult to count on. In addition, most oil and gas properties are depreciating assets. Instead of waiting for the production to eventually cease, selling your interests eradicates the uncertainty surrounding these types of assets.