How to Buy Mineral Rights Without a Land Purchase

You can buy and sell mineral rights of oil, natural gas, uranium or anything else buried below the surface of a property separately from ownership of the land. Many mining companies and speculators prefer this because they have no interest in the homes, farms or whatever else might be on top of the valuable matter they crave.

Instructions

1. Find the property you want. Whether from geological survey or industry buzz, decide which piece of land has the mineral rights you want.

2. Learn who owns the rights. Just like titles to surface land, ownership of mineral rights can become complicated, and the rights may already have been sold an resold before you took an interest.

3. Review the law. States have rules on how and when minerals can be removed, and even on the definition of "mineral." You may not be planning to do any mining yourself, but you still need to know this when you negotiate the contract.

4. Negotiate a contract. A good contract doesn't just cover the rights, but goes into how the minerals will be extracted, whether there will be reclamation for damage to the environment and who's responsible for problems. Make sure you and the owner both know what you've agreed to.

5. Decide on your next step. You have to decide whether you want to make plans to drill or mine, or hang on to the rights until someone buys them from you.

Tips & Warnings

• When researching ownership, remember that sales and ownership of mineral rights are recorded separately from surface rights.

• Make sure that whoever you're dealing with can sell you the mineral rights. Research ownership as thoroughly as if you were buying a house.