Frequently Asked Questions

What information do I need to provide?
  1. Copies of your recent payments,
  2. W-2, or check stubs.
  3. Most recent signed division order.
  4. Location of your mineral interest. (State, County, Field, City, etc.)
  5. Legal description of the property (if known.)
  6. Other information may be necessary depending on your situation.
How much will I be offered for my interest?

Offers vary on the following evaluations:

  1. Production History - (Decline Curves and Water Rates) of the Field and/or Leases
  2. Operators Reputation - Some just get it done better than others.
  3. Reservoir Formation - Some Reservoirs have longer production histories than others
  4. Commodity Price Risk - Gas, Oil, or both - is it sour, treated, etc.
  5. Future Production and Development
  6. Interest Type - Royalty, Overriding Royalty, Mineral Rights/Interest, Non-Participating Royalty Interest, or Working Interest.
  7. Historical Cash Flows and Averages for: 12 months, 6 months, and 3 months.
  8. Tax Rates - Tax Rates for Purchase and Severance may be too high, low, or non-existent pending your state of where the interest is located, which affects a property's value and offer rate.
  9. Geographic Location and Basins - Some geographic locations and basins are preferred to others (For Example: The Permian Basin would score higher than the Gulf Coast Basin, which is known for potential water issues).
Our offers typically range 24 - 48 months depending on the above factors. We would use this information with a prediction of future revenue to offer you a fair market value while addressing pricing, production risks and any uncertainties that may be involved.
Am I obligated to sell after I receive an offer?

Absolutely Not, All offers presented are "Non-Obligation" Offers to Owners for their Oil & Gas Interest(s). Additionally, receiving an offer does not obligate you to sell.

Do all mineral and royalty interests lose value over time?

Yes. Oil and gas reserves are finite, and every oil and gas well is destined to be plugged and abandoned. So, although royalty income can increase in the short term due to rises in oil and gas prices or production enhancement projects, you can be certain that your royalty checks will decline over the long run and will one day stop coming.

How is payment made once we settle on a price?

When an agreement is reached, we will send you two copies of the legal document for you to execute. You will sign the document in front of a notary and send it back to us in the provided overnight mail envelope. You can keep the other copy for your records. When the signed document is received in our offices it will be reviewed and payment will be made to you by either a check or an ACH wire by our bank, Regions. We will then record the documents in the county courthouse. (Please note that when and where possible internet or email will be used to speed processing.)

What guaranty do you provide that I will receive my money if I decide to sell my interest to Ranch & Land Minerals?

State law dictates that no transaction is legal or complete without compensation (payment). For a reference, you can contact our banker at Regions Bank to confirm if the funds are available and our credibility.

Do all mineral and royalty interests lose value over time?

Yes. Oil and gas reserves are finite, and every oil and gas well is destined to be plugged and abandoned. So, although royalty income can increase in the short term due to rises in oil and gas prices or production enhancement projects, you can be certain that your royalty checks will decline over the long run and will one day stop coming.

How do I calculate my royalty interest?

Divide the Number of (Net) Mineral Acres You Own within the Unit by the Total Acres within the Unit, and multiply this by your royalty interest Listed in your Oil & Gas Lease.

Follow the Example Below:
Net Acre(s): 12 Acres
Unit Size: 600 acres
Royalty: 20% or 1/5th = 12 ac/600ac x .20 = .004 Royalty Interest.