Transactions concerning mineral rights are generally a matter of public record, and you should be able to confirm ownership of these rights. If you are buying “surface” property in an area known for potential mineral development, you will need to determine if the mineral rights have already been sold. The buyer of a property should hire an attorney who can do this research. [2] X Research source

These ten states contain 80% of the oil and gas reserves in the U.
S.
Texas, North Dakota, Alaska, California, New Mexico, Oklahoma, Wyoming (oil only), Colorado (large deposits of coal as well), Utah and Louisiana. A mineral that will be in high demand now and the near future is lithium, used in most electronics that require batteries. Three countries have half the world’s lithium deposits: Argentina, Bolivia, and Chile. [4] X Research source

Companies usually contact the property owner to purchase mineral rights after a geologist or other professional has a reason to believe that the desired mineral exist in the area.

For example, in 2004 the United States Supreme Court ruled that sand and gravel are not considered minerals.

For example, “fracking,” the mining of natural gas, is banned in New York state while it is permitted in Pennsylvania. Hydrocarbons such as oil and natural gas are generally included under the term “mineral rights. " Although laws governing mineral rights are usually uniform among regions, it’s possible the laws governing mining and specific oil and gas regulations can vary greatly between states.

In most mineral rights transactions the buyer has the most say in how the mining will be conducted, when it will take place, how and what will be done, if anything, to fix the property afterwards. If the seller wants any control when the mining starts, he must think about what could go wrong and develop a contract that will cover his wishes, and that of future generations. [6] X Research source

Include access to fresh water in the agreement. Oil and gas mining requires a large quantity of fresh water during the mining process. If you can have access to nearby water, it will save you a lot of money. [7] X Research source Confirm both access, price, and any limits to use of water. The agreement should cover a long time period as you may not want to begin mining right away.

Do not attempt to write up the mineral rights lease yourself. Contact an attorney experienced in mineral rights leasing. Some states have laws that require mining and drilling companies to pay a minimum royalty percentage to property owners.

Oil and gas have the ability to cross property boundaries underground. Some states require drilling companies to specify how oil and gas royalties will be shared among adjacent property owners. [8] X Research source

Like other assets, oil and gas royalties can be bought, sold or transferred. The royalty income lasts for as long as the well produces, which may be several decades.

Note that if you are merely receiving royalties and are not the majority owner of the mineral rights, you have no say in the production schedule. If the majority owner decides prices are too low, they may cease production at any time, which will stop the flow of royalties.