Why Auction Mineral Rights?

The US is one of the few countries where minerals are not sovereign territory. In most countries, property owners have rights only to the surface land; the government owns any minerals that may be present underneath. In the US, property owners may own the mineral rights to their land if it had not been severed, or have also bought the severed mineral rights when they bought the surface land.
Mineral rights are essentially the prerogative of the owner to profit from whatever minerals, natural gas, or other substances that may be found under the surface land that has market value. This may be through development of the land by the mineral rights owner, the leasehold and royalties from renting out the mineral rights to speculators and developers, or by selling the rights outright. According to The Mineral Auction website, there are many willing buyers out there for those with the right connections.

There are several advantages to selling the mineral rights. The most important thing is that the landowner gets a large amount of money all at once. Those who buy mineral rights are not certain that there is anything of value below the surface. It is a gamble where the odds are calculated based on the location and geographic makeup of the property. If the surrounding areas have yielded profitable amounts of marketable deposits, there is a good chance that the property may have similar characteristics.  However, it is possible that there is nothing there, in which case the gamble is lost. When that happens, the mineral rights go from a significant sum to absolute zero. A mineral rights owner who passes up an opportunity to sell only to find out there is nothing to be made under the surface will not be given the same chance again.

The mineral rights owner also takes a chance. If there is anything valuable there, the owner misses on the chance to make even more money in the long run because selling the mineral rights means no royalties. The trick is to sell at a good price so that any potential shortfall will be minimized. The way to do this is to auction the mineral rights through a well-connected company specializing in such sales. This will ensure that the best possible deal is struck based on the circumstances of the mineral rights for sale.