April 27, 2018

Mineral Rights Glossary of Terms – Mineral Rights Definition

Are you looking for a mineral rights definition? Ferrari Energy takes pride in providing landowners with educational resources surrounding mineral rights. Explore our glossary of terms, below:

Mineral Rights Glossary

Basin

According to the Oxford Dictionaries, a basin is:

  • “a circular or oval valley or natural depression on the earth’s surface, especially one containing water.”
  • In the mineral rights industry, basins are often the source of mineral-rich deposits, such as oil and gas.

Landowner

According to Merriam-Webster, a landowner is:

  • “a person who owns land”
  • At Ferrari Energy, we work with landowners who own mineral acres on or under their property.

Lease Agreement

  • A legally-binding contract that contains the terms and conditions for developing land.
  • A lease agreement typically outlines mineral interest payments, effective date range and additional information about the land, minerals and royalties.

Mineral Acres

  • A measurement of mineral interest expressed as one acre of land.
  • Contact Ferrari Energy if you’re not quite sure how to value mineral rights using mineral acres.

Mineral Deed

  • A document that indicates the completion of a transaction  with mineral rights ownership belonging to the buyer.
  • Get in touch with Ferrari Energy if you need help locating a mineral deed for your land.

Mineral Interest

According to the USLegal.com:

  • “Refers to a possessor’s interest over the minerals buried in the property.”
  • Gas, minerals or oil that resides below the surface.

Mineral Owner

  • An individual or entity, typically the landowner, that is listed on a mineral deed as the current owner of mineral interests.
  • Are you a mineral owner interested in learning how to sell mineral rights? Contact Ferrari Energy to get started!

Minerals

According to BHC.edu:

  • “Minerals are defined as naturally occurring, inorganic, solids with a definite chemical composition and a regular, internal crystalline structure.”
  • Ferrari Energy helps landowners earn royalties on minerals that reside below the surface, such as oil and gas deposits.

Production Type

  • Deposits are generally categorized as a gas or oil well.
  • When selling mineral rights, the current and historical production can affect the royalties (e.g.; producing vs. non-producing).

Purchaser

  • The agent authorized under purchase and sales agreement to convert, market, trade or transport the oil.
  • As mineral rights purchasers — also known as mineral rights buyers — Ferrari Energy pays mineral owners for the sale of mineral interests.

Purchase and Sales Agreement

  • A contract, also known as PSA, required by law to outline each party’s obligations to the transaction.
  • When you work with Ferrari Energy, our team manages virtually every aspect of your mineral rights transactions.

Qualified Buyer

According to Investor Words:

  • “An individual or company who is in the market and displays some evidence of being financially able to buy a home or property within a specific price range.”
  • Request a consultation from Ferrari Energy when you’re ready to enter into a mineral rights sale.

Royalties

According to the Cornell Law School:

  • “A form of compensation based on a percentage of revenue or unit sales generated under an agreement, typically a patent or copyright licensing contract.”
  • The expert team at Ferrari Energy is here to help you sell oil and gas royalties for the highest possible value.

Title Verification

  • The process by which a landowner determines if she / he owns the mineral rights found on the property without any legal restriction, lien or levy.
  • Title verification enables landowners to answer the questions, “do I own the mineral rights to my property?