ABOUT MINERAL RIGHTS
Most people recognize that owning real estate is one of the most powerful investments you can make. But many people don’t know they have an
opportunity to take their real estate investments below the surface, missing out on a wealth of potential – the potential to make decades of passive monthly income, attractive returns, and build wealth for generations.
MINERAL RIGHTS
Unlike in most countries where the government owns mineral rights, in the United States, individuals can privately own the mineral rights underlying the surface real estate- straight to the Earth's core.
GENERATIONAL-WEALTH
Surface owners can differ from subsurface mineral rights owners, allowing a family to sell their home above ground and retain the mineral rights below it. Mineral rights are often passed down through families for generations.
Over time, surface and mineral rights can be separated, and hands can change repeatedly, giving individuals a unique opportunity to own the minerals to the Earth's core.
LEASED MINERAL RIGHTS
When operators drill for minerals like oil and natural gas, they lease the subsurface mineral rights from the mineral rights owner in exchange for an upfront payment and an ongoing royalty.
WHAT ROYALTIES ARE
Once a well is operational, the oil and natural gas company must pay monthly royalty payments to the mineral rights owners. These royalties, which exist so long as the well remains in production, provide a reassuring long-term security to the mineral rights owner, ensuring a steady income over time. Most wells produce for decades under current technology, and the best technology only recovers about 50% of the oil and gas in the formation.
WHAT ROYALTIES ARE NOT
Here is an important distinction: Some people invest in a "working interest" in a well or field. A working interest is an investment in development costs—including drilling and operating expenses, payments to mineral owners, and royalty interests—in exchange for a proportional share of profits. Mineral rights are not working interests. Mineral right owners assume zero risk associated with drilling and operating the wells.
INCREASING VALUE
Mineral rights progress through various stages before a producing well is established. Each stage increases the value of the mineral rights and decreases the risk.
RETURN ON INVESTMENT
Acquiring the mineral rights before the wells are officially permitted and drilled significantly increases a mineral owner's rate of return. Once the wells are drilled, production is at its highest, and investors can recapture their investment in a very short period.
Then, initial production steadily declines within the first 2-3 years, eventually leveling at an attractive rate of return for decades.
OIL & NATURAL GAS
Main Street America runs on oil and natural gas. It paves our streets, fuels our cars, and heats our homes and workplaces. It's an indispensable asset that has built generational wealth for families for hundreds of years.
OIL
According to International Energy Statistics, the United States has produced more crude oil than any nation at any time for the past six years in a row. In terms of production value,
the oil market is bigger than the
top 10 metal markets combined -