Should You Sell Your Mineral Rights?

We assist mineral owners in selling or leasing their mineral interests. In the last year, Utah mineral owners have been pressed by various companies with offers. Mineral owners are sometimes confused about what they own, what rights they have, and the value of those rights. Our experience can help you get top dollar for your rights.

If you own mineral rights in the Uintah Basin (Vernal, Roosevelt, Duchesne Counties), now is a historically good time to sell for a few reasons. First, oil prices are strong and steady. Second, oil exploration companies have developed horizontal drilling methods that show a lot of future potential. Third, a railroad line was recently approved from the Uintah Basin to the main rail line in Helper, Utah - which helps companies ship oil cheaply and to larger markets. These factors have caught the attention of larger investors, who are willing to bet that oil production will continue for years to come. They are paying top dollar to create royalty funds, often waiting a decade or more for a return.

There are lots of reasons to sell your rights, here are a few:

1. Immediate Cash Flow. You can realize most of the value from your mineral rights upfront, instead of waiting for royalties to flow in over a number of years. Investing this cash now, at high market rates, might prove a better financial return and diversify your portfolio.

2. Less Risk. Your royalties depend on the successful development of your minerals rights by the oil companies. The Basin has plenty of examples of good wells next to bad wells. When you sell your interest, you capitalize on the unknown potential of your rights.

3. Tax Planning. Royalties are taxed as ordinary income, which can hit 32% depending on your tax bracket. In contrast, if you inherited your mineral rights, then you only pay capital gains tax on the increased value. Depending on the timing, you may not pay any tax on a sale. Be sure to consult a tax professional (which I am not), for specific advice on tax matters, which this is not.

4. Avoid Administrative Hassles. Mineral owners receive a lot of complicated and confusing paperwork. You leave these hassles and uncertainty behind when you sell your rights.

5. Estate Planning. Leaving a mineral interest to the next generation may create difficulties for your heirs. The heirs will have less knowledge than you about these rights and how to capitalize on them. Further, the interests continue getting broken down into fractions of net mineral rights that are not worth the costs of transfer.

Despite these advantages, it's crucial to carefully evaluate the decision to sell mineral rights, considering long-term financial goals, the potential for future resource discoveries, and the overall market conditions. Consulting with financial advisors, legal experts, and industry professionals can help individuals make informed decisions based on their unique circumstances.

We are available to help you analyze your rights, ensure that you receive top dollar, and effective transfer your rights whether by a sale or by estate planning. Use the “Contact Use” form on the website for a free consultation.

Third District Court - Salt Lake County, State of Utah Court Phone Directory - Email Addresses

I’m posting this contact information sheet for the Third District Court in Salt Lake County, State of Utah because the court website has extremely limited functionality and is difficult to use. Calling the general telephone line and trying to get to the right department is also a difficult task. Hope this is useful!

Judge James Blanch W-33 801-238-7112 3rdblanchteam@utcourts.gov

Judge Heather Brereton S-41 801-2387031 3rdbreretonteam@utcourts.gov

Judge Patrick Corum N-42 801-238-7378 3rdcorumteam@utcourts.gov

Judge Robert Faust N-41 801-238-7197 3rdfaustteam@utcourts.gov

Judge Dianna Gibson S-44 801-238-7310 3rdgibsonteam@utcourts.gov

Judge Kent Holmbeg S-42 801-238-7145 3rdholmbergteam@utcourts.gov

Judge Elizabeth Hurby-Mills W-47 801-238-7305 3rdhurby-millsteam@utcourts.gov

Judge Linda Jones W-42 801-238-7452 3rdjonesteam@utcourts.gov

Judge Keith Kelly S-35 801-238-7024 3rdkellyteam@utcourts.gov

Judge Mark Kouris W-48 801-238-7105 3rdkouristeam@utcourts.gov

Judge Barry Lawrence W-37 801-23-7120 3rdlawrenceteam@utcourts.gov

Judge Richard McKelvie W-46 801-238-7118 3rdmckelvieteam@utcourts.gov

Judge Amber Mettler N-44 801-238-7525 3rdmettlerteam@utcourts.gov

Judge Adam Mow W-45 801-2387179 3rdmowteam@utcourts.gov

Judge Amy Oliver S-45 801-238-7310 3rdoliverteam@utcourts.gov

Judge Paul Parker S-34 801-238-7190 3rdparkerteam@utcourts.gov

Judge Kara Pettit W-35 801-238-7144 3rdpettitteam@utcourts.gov

Judge Coral Sanchez W-45 801-238-7099 3rdsanchezteam@utcourts.gov

Judge Laura Scott S-32 801-238-7117 3rdscottteam@utcourts.gov

Judge Todd Shaughnessy W-39 801-238-7302 3rdshaughnessyteam@utcourts.gov

Judge Randall Skanchy N-45 801-238-7199 3rdskanchyteam@utcourts.gov

Judge Andrew Stone W-44 801-23-7176 3rdstoneteam@utcourts.gov

Judge Vernice Trease W-49 801-238-7011 3rdtreaseteam@utcourts.gov

Judge Teresa Welch W-43 801-238-7477 3rdwelchteam@utcourts.gov

Judge Matthew Bates 23-WJ 801-233-9955 3rdbatesteam@utcourts.gov

Judge James Gardner 33-WJ 801-233-9777 3rdgardnerteam@utcourts.gov

Judge Douglas Hogan 31-WJ 801-233-9719 3rdhoganteam@utcourts.gov

Judge Kristine Johnson 36-WJ 801-233-9766 3rdjohnsonteam@utcourts.gov

Judge William Kendall 37-WJ 801-233-9706 3rdkendallteam@utcourts.gov

Judge Chelsea Koch 32-WJ 801-233-9789 3rdkochteam@utcourts.gov

Comm. Michelle Blomquist W-38 801-238-7098 3rdblomquistteam@utcourts.gov

Comm. Kim Luhn W-32 801-238-7029 3rdluhnteam@utcourts.gov

Comm. Russell Minas W-34 801-238-7021 3rdminasteam@utcourts.gov

Comm. Joanna Sagers W-36 801-238-7040 3rdsagersteam@utcourts.gov

Comm. Michelle Tack 22-WJ 801-233-9781 3rdtackteam@utcourts.gov

Probate Department 801-238-7164 3rdslcprobate@utcourts.gov

Archives 801-238-7185 archiverequestslc@utcourts.gov