SALEM, Ohio — There are those who say selling your mineral rights can be a good thing, depending on your situation.
Eugene Kiko, Realtor and auctioneer for Kiko Auctioneers, said the shale boom has created an interest in mineral rights sales, and the mineral rights market right now is paying more than the $3,000 or even $5,000 many landowners received when they leased their land.
“Every potential mineral rights seller has to look at their options,” said Kiko.
Kiko recently sold mineral rights for a seller who was retiring from a small farm in Carroll County. The person was single and decided to no longer farm and wanted to travel instead.
This seller had leased the farm acreage previously to a gas drilling company. The land was sold with 25 percent of the mineral rights, and the other 75 percent was sold to a different buyer.
“It’s fairly easy to do when the lease is already in effect. It’s not as easy if it isn’t leased,” said Kiko.
Kiko said there are many options for people wanting to sell their mineral rights. A seller can choose to keep some of the interest in the mineral rights, sell only partial with the land or sell the mineral rights entirely.
Based on his experience, Kiko said he doesn’t like seeing the mineral rights totally separated from the land because he doesn’t want to see a driller decide to drill on a piece of property when the surface owner has no rights.
Kiko said the mineral rights buyers have to pay with cash since they cannot obtain financing for mineral rights purchases because of the speculatory nature of the purchase.
To read why it may be best to
STAY INFORMED. SIGN UP!
Up-to-date agriculture news in your inbox!