Sell Utah Mineral Rights FAST

Production of oil and gas in Uintah occurs mostly in the Uintah Basin, primarily in Duchesne County and Uintah County. Production is many decades old. The first commercial production was in 1948 and, gradually, exploration built an industry that hit a peak in 1984. From 2003 to 2014, a resurgence of oil and gas production occurred but since, it's fallen off the cliff, falling to where it was in the mid-eighties.

Sell Utah mineral rights?

Some are fortunate to own mineral rights, and this article is speaking of oil and gas rights, not hard minerals such as sand, gravel or coal. Mineral rights are typically leased to an oil company (oil and/or gas company) because drilling oil and gas wells is hugely expensive. Modern oil/gas wells cost several million dollars apiece just to find out if anything is there down below, and millions more to complete and establish production in commercial quantities.

If one owns mineral rights or royalties and drilling has occurred, royalty checks starting coming in from the production. The oil company drills and operates the well(s), the royalty owner (mineral rights owner) enjoys a royalty check from time to time, often monthly. This royalty varies between one-eighth to one-quarter of the value of the oil/gas produced. It is likely to come from one of several active companies in Duchesne County or Uintah County, Utah. Companies include:

• Bill Barrett Corp
• Crescent Point
• EP Energy (El Paso)
• Finley Resources
• Kerr McGee
• Newfield Production Company
• Ultra Resources

The companies listed above are not mineral rights buyers, they are exploration and production companies, commonly called 'operators' in the oil and gas industry.

A search of production records reveals that all wells drilled since mid-2017 from the operators above have yielded both oil and natural gas. A lot of modern wells produce a pretty balanced mix. Most modern wells in this part of Utah utilize 'horizontal drilling' and 'fracking' to extract oil and gas from various formations deep below ground. Without these two techniques, oil and gas production would be a fraction of what it is today. It is largely a safe practice, having been perfected over several decades involving tens of thousands of very expensive wells!

So, what should one do, is selling Utah mineral rights a good idea? Each case is different and many factors come into play for someone who owns mineral rightss but suffice to say, cash money in hand, rather than a hope and a prayer, has real world value, today. People sell for many reasons.

Perhaps they inherited it and really don't understand oil and gas royalties, it's confusing. It could be because they are tired of dealing with the attendant paperwork, or just too much hassle. Often, it's because they want to buy this or that with the cash settlement, the lump sum, rather than wait for royalty checks to dribble in. Or they want to settle up their estate, as they are elderly. As for getting a lump sum check, it's especially appealing if the royalty checks have dwindled. Sometimes, selling royalty rights can bring a nice payday, it depends on the potential for future profit for the buyer. But dwindling royalty checks is a common reason to sell. Such is the plight of oil and gas royalties... over time, they always decline, because oil and gas wells are depleting assets from day one.

A big reason for to sell Utah mineral rights (or any mineral rights) is because it removes all risk. Oil and gas exploration and production is anything but certain. Plans (for oil companies) change. Things sometimes go wrong. Exploration or production in an area might present unforeseen problems at the time drilling initially occurred. Things happen. So, taking a lump sum payout removes all risk because nothing is more certain than cash money. Believe me, not all purchases turn out well for the buyer. It's a gambler's game.

If you wish to sell mineral rights in Utah, contact me, and we can get a sale completed really quickly after you provide information about what you own. It's not a difficult process if you're dealing with a professional with a lot of experience, and I have a lot... over forty years at this! I don't know why I keep doing it, I can only say that I like doing it, I like dealing with people and giving them money, lol. I can complete a sale quickly, it is much, much faster than doing a real estate deal. We just have to pass some papers back and forth to transfer ownership and get you your lump sum cash paycheck.

More information about selling Utah mineral rights, especially Duchesne county mineral rights or Uintah county mineral rights, can be found here.