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(903) 595-0606patrick@broadwayels.com

What lies beneath the surface, and who owns it.

In Texas the mineral estate can be owned separately from the surface above it, and its rights, to lease, to receive bonus and to receive royalty, can be split among different owners. Two people can own the same acre in completely different ways.

Broadway helps owners, investors and operators understand what an interest is, what it is worth, and how to buy, sell or manage it.

Surface, minerals and the interests between

Someone new to mineral ownership should leave this section knowing one thing: the land and what lies beneath it can belong to different people. Select a part of the cross-section to see how.

MINERAL OWNERROYALTY ¼OPERATORWORKING INTERESTPRODUCING FORMATIONMINERAL ESTATETRACT · SURFACE ESTATE

Illustrative cross-section. Not to scale, and not a Broadway property.

Overview

One tract, two estates. The surface and the minerals beneath it can be owned by different people, and once the minerals are leased, production is shared between royalty and working interests. Select a part to see where it sits.

Mineral Services we provide

03.1

Mineral Acquisition & Divestiture

Buying and selling mineral and royalty interests with ownership checked against the record.

Whether you are adding to a position or selling one, a mineral transaction depends on knowing exactly what interest is being conveyed, what it is burdened by and what it produces.

Broadway helps identify and evaluate interests, verify ownership, and prepare and record the conveyances that close the transaction.

What it covers

  • Interest identification and ownership verification
  • Review of leases, production and burdens
  • Conveyance preparation and recording
  • Support for buyers and sellers
03.2

Mineral/Royalty Management

Keeping track of interests, leases and royalty payments over time.

Mineral and royalty interests need ongoing attention: division orders to verify, decimals to check, lease expirations to watch, payments to reconcile and suspended funds to follow up. Records drift as interests pass through estates and operators change.

Broadway keeps the ownership records straight so owners are paid correctly and nothing lapses unnoticed.

What it covers

  • Division order and decimal interest review
  • Lease expiration and activity tracking
  • Ownership record maintenance
  • Royalty payment questions and reconciliation
03.3

Mineral Appraisal

Estimating the value of a mineral or royalty interest.

An interest’s value depends on where it is, what type of interest it is, its size, whether it is leased or producing, and the activity around it.

Broadway brings those factors together into a supportable estimate for owners deciding whether to sell and for buyers evaluating an offer. The purpose is settled first: where an estate, lender or court needs a formal appraisal from a certified appraiser, or an engineering reserve evaluation, we say so at the outset.

What it covers

  • Interest type and decimal verification
  • Lease status and nearby activity
  • Production history where available
  • Written estimate stating its purpose, date and assumptions

Terms, in plain English

All Oil & Gas Land Terms
Surface estate
The surface estate is ownership of the land itself.
Mineral estate
The mineral estate is ownership of the oil, gas and other minerals beneath the surface.
Royalty interest
A royalty interest gives its owner a share of the oil or gas produced, or the money received from selling that production.
Working interest
A working interest is the ownership interest that carries the right to develop an oil and gas lease.

Common questions

What is the difference between a mineral interest and a royalty interest?

A mineral interest is ownership of the minerals themselves and usually includes the right to lease, to receive bonus and to receive royalty. A royalty interest is only a share of production, free of drilling and producing costs, and does not carry the right to lease. The two can be owned by different people.

Related terms: Mineral estate, Royalty interest, Non-participating royalty interest (NPRI)

What does mineral and royalty management involve?

Keeping track of owned interests over time: verifying division orders and decimals, watching lease expirations and new activity, reconciling royalty payments, following up on suspended funds, and updating ownership records as interests pass through estates or operators change. The goal is that owners are paid correctly and nothing lapses unnoticed.

Related terms: Division order, Decimal interest

How is a mineral interest valued?

Value depends on the type and size of the interest, where it is, whether it is leased or producing, its production history and the activity around it. The purpose matters too: a quick value estimate, an engineering evaluation and a formal appraisal by a certified appraiser are different products for different needs.

Related terms: Mineral appraisal, Net mineral acres (NMA)

Can mineral rights be sold separately from the land?

Yes. In Texas the minerals can be sold, inherited or reserved separately from the surface. A mineral sale conveys a defined interest by deed, so the buyer and seller need to know exactly what fraction is being conveyed, what it is burdened by and what it produces before closing.

Related terms: Severance, Mineral estate

Start your mineral work with Broadway Land.

Tell us about the tract, the lease or the interest, and we’ll tell you what it will take. No job is too big or too small.

Start With Broadway Land(903) 595-0606
32°21′N95°18′W126 W. Amherst St., Tyler, TX 75701patrick@broadwayels.com