Playbook #076: Mineral Rights

🖼️ The Big Picture

However you feel about oil & gas, we can all agree that lease and royalty income that comes in regularly, while you do nothing, is a beautiful thing. If your Investor DNA is tied to land or minerals and you like “mailbox money,” then you might want to look into mineral rights.

Mineral rights grant ownership of minerals in the ground, such as gas, coal, oil, lithium, cobalt, and some metals. They generally don't include water or surface minerals like gravel or sand (which are typically sold in high volume at a low price.)

In the U.S, if you own property… you also own the mineral rights, unless they’ve been sold to someone else.

There are many different types of mineral rights, but landowners with mineral rights (or standalone mineral rights owners) will most commonly get a “signing bonus” when a lease is initiated with one or more utility companies… followed by royalties later when the company extracts minerals.

How much you make will vary depending on the terms of the lease. Mineral rights owners can keep the rights for cash flow, sell them in a lump sum at a discount, or even sell a percentage of the rights.

🔢 By The Numbers

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