Mineral Owners Face Difficult Choices

Photo by Dan Larson

Publication: Greeley Tribune
Issue: June 24, 2018
By Dan Larson

Mineral owners are faced with what may seem like a gusher of choices when it comes time to turn their asset into income.

Like surface real estate, mineral estates are only as valuable as what someone will pay for them. Unfortunately, the hard value of a subsurface tract is often not fully understood by the owner.

For a surface property owner, finding current market value for a house and lot in Greeley is as simple as checking one of the free online appraisal sites. Real estate professionals might argue that online appraisals can be way off the mark or simply outdated by today’s lightspeed market, but they still offer a reasonable snapshot of market value.

For the owner of a mineral estate, finding solid information on market value is difficult and can involve the purchase of a complicated software package or digging through gigabytes of public records.

Or, the owner can simply take the first offer the oil company landman lays on the table.

There is another way, says Adam Ferrari, who’s namesake energy company occupies a niche in the oil and gas industry between the companies that drill the wells and the independent brokers of the rights to mineral assets.

“Many mineral owners don’t understand that you do not have to take the oil company’s lease offer,” Ferrari said. “There are several options available, and it is important to understand the differences.”

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