Owning Mineral Rights
Learn all about the world of mineral rights ownership with Eckard Enterprises! Eckard has a fully integrated, experienced team ready to help accredited investors understand the ins and outs of owning mineral rights.
What are the Benefits of Owning Mineral Rights?
Owning mineral rights means having ownership of subsurface resources in a specific area, which can be separate from ownership of surface land. These natural resources may be oil, natural gas, coal, metals, gemstones, or even sand. The extraction and sale of these resources can be tremendously beneficial to the mineral rights owner.
Real Property
Having mineral rights is ownership of real property, like real estate, and they are owned in perpetuity.
No Drilling Cost
Mineral rights owners pay ZERO expenses and take ZERO drilling liability in regard to drilling operations.
Paid First
Mineral rights owners are royalty owners and are paid first, before anyone else in the oil & gas chain of payment.
Monthly Checks
Royalties from the sale of oil and gas are distributed monthly to mineral rights owners. Twelve checks a year and a 1099.
Booked Reserves
Mineral rights owners are paid for every zone or reservoir that exists within their defined mineral boundary.
Multiple Wells
Modern technology has lowered drilling risk and increased production.
What Does it Mean to Own Mineral Rights?
By definition, real property includes the land and anything that is permanently attached to the land. This means buildings, roads, fences, bridges, trees, water and mineral rights are all classified as real property.
So, similarly to owning real property with a real estate investment, when you make an investment in mineral rights, you own a real and tangible property in perpetuity.
How Does Revenue From Mineral Rights Work?
Financials of Mineral Rights:
How Do You Get Paid?So, you’ve got mineral rights—congrats! That means you own the stuff under the ground, like oil, gas, or other valuable resources. But don’t worry—you don’t need a hard hat or a drilling rig to make money. Most mineral owners lease their rights to energy companies, who do all the heavy lifting (literally). Here’s the flow: First, you sign a lease. Then you might get a nice upfront payment. If the company strikes oil (or gas), you start receiving royalty checks. Simple as that—money from the ground, while you stay above it.
One-Time Payments:
Leasing Your Mineral RightsLet’s talk about the first payday: the lease bonus. This is a one-time lump sum the energy company pays you just for the right to try and find something underground. Think of it like a signing bonus—they’re locking in the rights to explore your land, and you get paid even if they never drill a single well. The bonus amount depends on things like how promising your land looks, how hot the market is, and good old-fashioned negotiation. It’s a great way to earn upfront while waiting to see what happens next.
Receiving Royalties:
Monthly PaymentsNow for the exciting part—royalty checks! If the company starts producing oil or gas, you’ll start receiving a share of the profits every month. Your royalty rate is spelled out in your lease (often somewhere between 12.5% and 25%), and your payments are based on how much was pulled from the ground and the going market rate. You’ll also get a statement showing the details—volume, prices, deductions (like transport), and your slice of the pie. It’s a little like owning stock in your own land, but with the bonus of regular cash flow.
Direct Ownership:
Underground Real EstateMuch like traditional real estate holdings, mineral rights owners own an asset in perpetuity. These assets are titled and deeded, and we provide these documents in your account on the Eckard Insight app to be referenced easily. Unlike a mineral fund, when one owns mineral rights directly they hold legal title to specific mineral rights that are tied to a particular piece of land. Mineral rights have the significant benefit of being representative of physical resources that are tied to real property, with value that is retained and can potentially grow with time as global demand for energy resources increases.
Consulting the Experts:
Eckard EnterprisesWe do the hard work of selecting mineral rights of interest, purchasing them, clearing title, and gathering them strategically in specially formulated mineral packages. We then allow qualified, accredited individuals to acquire ownership at the level they wish to participate. Revenue is distributed to owners every month on a percentage basis as oil & gas is produced on the mineral rights. The performance of owned assets are tracked on our proprietary app, Eckard Insight, in detail down to each well in the package. Reach out to our team to learn more about how mineral rights ownership works and whether it’s right for you!
How Does Revenue From Mineral Ownership Work?
Financials of Mineral Rights: How it Works
So, you’ve got mineral rights—congrats! That means you own the stuff under the ground, like oil, gas, or other valuable resources. But don’t worry—you don’t need a hard hat or a drilling rig to make money. Most mineral owners lease their rights to energy companies, who do all the heavy lifting (literally). Here’s the flow: First, you sign a lease. Then you might get a nice upfront payment. If the company strikes oil (or gas), you start receiving royalty checks. Simple as that—money from the ground, while you stay above it.
Getting a One-Time Payment for Leasing Your Mineral Rights
Let’s talk about the first payday: the lease bonus. This is a one-time lump sum the energy company pays you just for the right to try and find something underground. Think of it like a signing bonus—they’re locking in the rights to explore your land, and you get paid even if they never drill a single well. The bonus amount depends on things like how promising your land looks, how hot the market is, and good old-fashioned negotiation. It’s a great way to earn upfront while waiting to see what happens next.
Receiving Royalties: Monthly Payments
Now for the exciting part—royalty checks! If the company starts producing oil or gas, you’ll start receiving a share of the profits every month. Your royalty rate is spelled out in your lease (often somewhere between 12.5% and 25%), and your payments are based on how much was pulled from the ground and the going market rate. You’ll also get a statement showing the details—volume, prices, deductions (like transport), and your slice of the pie. It’s a little like owning stock in your own land, but with the bonus of regular cash flow.
Direct Ownership: Underground Real Estate
Much like traditional real estate holdings, mineral rights owners own an asset in perpetuity. These assets are titled and deeded, and we provide these documents in your account on the Eckard Insight app to be referenced easily. Unlike a mineral fund, when one owns mineral rights directly they hold legal title to specific mineral rights that are tied to a particular piece of land. Mineral rights have the significant benefit of being representative of physical resources that are tied to real property, with value that is retained and can potentially grow with time as global demand for energy resources increases.
Consulting the Experts: Eckard Enterprises
We do the hard work of selecting mineral rights of interest, purchasing them, clearing title, and gathering them strategically in specially formulated mineral packages. We then allow qualified, accredited individuals to acquire ownership at the level they wish to participate. Revenue is distributed to owners every month on a percentage basis as oil & gas is produced on the mineral rights. The performance of owned assets are tracked on our proprietary app, Eckard Insight, in detail down to each well in the package. Reach out to our team to learn more about how mineral rights ownership works and whether it’s right for you!
Where Do We Look For Mineral Rights?
We own mineral rights and other energy assets in major basins across the United States, but our main areas of focus are the Permian Basin in West Texas and the Anadarko Basin in Oklahoma.
* Click the regions on the map for more information
Our Main Areas of Interest
Speak to an Expert
Eckard has spent the past five years helping accredited investors own mineral rights in areas where we see the greatest potential upsides. With 40 years of oil and gas experience, Eckard has the intellectual resources and the expertise to pick the right assets. Speak to an expert today to learn more about what mineral rights have to offer.
Want to Learn More?
A member of our wealth management team would be happy to walk you through what we do in detail and provide any additional information you’d like to know.