Leasing Mineral Rights
In the Wattenberg Field of Weld County and surrounding areas the term “mineral” generally refers to oil and natural gas.
“Mineral rights” are the rights that a mineral owner has to produce the oil and gas or to lease those rights to another party for production and to receive payments in the form of royalties.
Owning land does not necessarily mean that you own mineral rights. Minerals are real property similar to the surface and can be sold and retained separately from surface rights. There are many cases in our area where the surface is owned by one person and the minerals are owned by another.
Oil and Gas Lease
An oil and gas lease a contract between the owner of minerals and a company who specializes in drilling and producing oil and gas. The lease gives the company the right to drill for oil and gas. In return the company typically pays the mineral owner an upfront bonus payment when the lease is signed and monthly royalty payments based upon a percentage of the revenue earned from the sale of oil and gas produced from the well.
An oil and gas lease has a primary term, which is the amount of time that the company has to drill a well and produce oil and gas. If a well isn’t drilled within the primary term the lease will expire and the company no longer has the right to drill a well. If the company does drill a well and produces oil and gas then the lease is effective as long as production occurs.
Oil and Gas Lease Definitions:
Lessor: Mineral Owner
Bonus Amounts and Royalty Rates
Lessee: Company who specialized in drilling and producing oil and gas
Royalty: A percentage of the revenue earned from the sale of oil and gas produced from the well that is paid to the mineral owner.
Primary Term: The amount of time a company has to drill a well and produce oil and gas. If a well is not drilled within the primary term the lease will expire and the company no longer has the right to drill a well.
Proposed bonus amounts and royalty rates can vary based on a number of important factors including the expected production results in your area, the cost and difficulty to develop your project, the size of your land and the availability and cost of drilling sites and natural gas collection lines.
Leasing with Mineral Resources, Inc.
If you own property in the City of Greeley, Evans or surrounding areas, contact us
with your name, phone number and property location. Or, call us at 970-352-9446.
Frequently Asked Questions
No, Mineral Resources does not offer either one at this time.
Checks are mailed on or about the 28th of each month. A check is issued when the owner's account has a balance of at least $50.00, except when state law directs otherwise. IRS 1099 statements are issued on January 31 of each year.
If you haven't received your check by the 5th of the following month, contact our Greeley office. Be sure to listen carefully to the menu options as they have recently changed to better serve you. If you have lost a check, contact our office by phone at 970-352-9446 or email us @ firstname.lastname@example.org to request a lost check affidavit. Once Mineral Resources receives the affidavit back from you the lost check can be voided and the funds included on your next check issued.
Please contact our office by phone at 970-352-9446 or email us @ email@example.com
You may download the change of address form or you may submit a letter to our Greeley, Colorado address with your name, payee number, old address, new address, telephone number and your tax id or social security number. All persons listed on the account must sign and date this request.
Return the stale check to our Greeley, Colorado address and request a new check. The funds will be included on your next check issued.
Mineral Resources requires a copy of the assignment or deed which conveys your ownership to another party. This conveyance document must be recorded in the county realty records where the properties are located. Mineral Resources also requires an IRS form W9 from the new owner(s). If you have any questions or concerns you may call our Greeley office and one of our land administrators will contact you within 2 business days.
Submit to our Greeley, Colorado address, a copy of the recorded conveyance document which conveys the property from the current owner of record to the trust. Include a copy of the trust agreement or certificate/ memorandum of trust and be sure to include an IRS form W9 for the trust.
Submit to our Greeley, Colorado address a copy of the portion of the trust agreement pertaining to the appointment of the successor trustee & their duties and powers. Also include in writing the circumstances for the replacement of the trustee.
Please notify Mineral Resources immediately by phone at 970-352-9446 or email us @ firstname.lastname@example.org when an owner has died regardless of whether the account is in the name of one individual person, a husband & wife, multiple owners, or a trust. Include the date of death and Owner Code if known.
To transfer ownership from the decedent to their heirs or beneficiaries, Mineral Resources may require a copy of one or more of the following documents:
- Death certificate
- Last Will & Testament
- Order admitting the will to probate
- Letters Testamentary
- Final order/decree of distribution or
- A deed from the personal representative of the estate to the heirs
Mineral Resources requires a letter from you requesting that your name be changed. Include a copy of your marriage license or divorce decree and a copy of your current social security card to show the name change. If you wish to include or remove your spouse's name from the account, please submit the appropriate legal documentation such as a deed or conveyance.
Mineral Resources, Inc. does not provide property appraisals. Please contact a certified petroleum engineer, a royalty management company or broker to obtain this valuation.