Do you want to know how much the mineral rights on your Colorado land are worth? That’s what LandGate is here to help you do. Please reference our comprehensive guide below to understand what mineral rights are, how to obtain them, and how to estimate their value.
Do you own mineral rights in the U.S.? LandGate provides mineral owners with free estimates for the lease and sale value of their minerals in our free property reports. Get your free property report on our map below:
Understanding Mineral Rights in Colorado
The first step in the mineral rights process is trying to understand who owns them. A question we get asked frequently is “if I own the surface, don't I automatically own the mineral rights”? The answer would be NO, not automatically. Their next question is “I bought the property and the deed says I am receiving all right, title, and interest of the seller.” If the seller owned the minerals, then the minerals were also conveyed to you along with the surface. If the seller did not own the minerals, then all you received was the surface. Yes, it's complicated, but there are a couple of things you should know.
Mineral Reservation in a Deed
A Deed is used to transfer ownership of property. If you find the following language in the Deed, the minerals have been severed from the surface.
Notwithstanding anything contained herein to the contrary, the Grantor reserves all of the Grantor’s right, title, and interest in and to all the oil, gas, and other minerals in, on and under the described lands, (the “Mineral Rights”).*
This language acts to create a Surface Estate and a Mineral Estate. The owner of the Surface Estate is entitled to use the surface only. The owner of the Mineral Estate has the right to use a reasonable amount of the surface to explore for oil and gas or grant a lease to an oil and gas company.
Who owns the right to Lease for Solar Farms - Surface Owner
Who owns the right to Lease for Wind Farms - Surface Owner
Who owns the right to Lease for Oil & Gas - Mineral Owner
In Colorado, it’s common for surface rights and mineral rights to be severed and owned by different people. As the mineral estate is the dominant estate, the surface owner must accommodate the mineral owner by providing a reasonable amount of surface to be used for oil and gas drilling. Before an oil and gas company begins drilling, they will notify the surface owner of upcoming drilling operations and coordinate a satisfactory drill site location, compensation for surface damages restoring the land to its original condition when operations are complete.
How to Buy Mineral Rights in Colorado
If you want to acquire mineral rights in Colorado, you can log into LandGate.com, where you will see many listings of Minerals for Sale for free. You can make offers directly to the mineral owner.
How to Find a Mineral Rights Owner in Colorado
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.
Calculating the Value of Mineral Rights in Colorado
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 estimate for the value of mineral rights. 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.
What Are the Different Types of Mineral Rights That Might Be for Sale?
Leased Non-Producing Mineral Rights
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
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.
Unleased Mineral Rights
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.
Sell Your Colorado Mineral Rights With LandGate
If you’re ready to sell mineral rights on your Colorado property, LandGate is the name you can trust. As the industry's #1 marketplace for leasing and selling mineral rights, we will help you secure the highest bid for your land. Start the process today by a) finding your property on our map to view your estimated values or estimated potential dividends or b) listing with us for free.