Frequently Asked Questions

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Mineral interests refer to the legal ownership of resources beneath the surface, such as oil, gas, or other minerals. If you own mineral interests, you are entitled to lease those minerals to an operator and receive payments such as lease bonuses and royalties from production.

Royalty interests are the right to receive a percentage of revenue from the sale of oil and gas produced from certain wells, without bearing the cost of drilling and operating those wells. When you lease your mineral interests, you generally retain a royalty interest in any production occurring from any wells drilled on the leased acreage. This royalty is commonly between 12.5% and 25% of production revenue.

We aim to present the best possible offer for your property within 48 hours. Once we agree on a sales price, we’ll move forward with a sales contract, which usually takes just a few days to finalize. After the contract is in place, we’ll conduct a final title evaluation. The timeline for this depends on the courthouse’s activity level and our title team’s workload, but it typically doesn’t exceed four weeks.

Should you choose to have an attorney review documents, you will bear that cost. The only costs to you will be elective. Otherwise, all transaction costs will be paid by Arena Minerals.

Absolutely. In most cases, we encourage sellers to retain a portion of their mineral or royalty interests as a hedge against potential long-term increases in cash flow. This approach allows you to secure a portion of the value now, eliminating price and production risks, while keeping the opportunity open for future appreciation.

Yes, the sale is subject to federal and state income taxes . The good news is that if you have owned the minerals for a few years, the sale may be categorized as a capital gain, which is potentially a lower tax rate than ordinary income. In fact, this is potentially one reason to cash out now. Long term royalty income is subject to ordinary income tax, which may be much higher. We always advise mineral owners to seek guidance from their own tax advisors on these matters.

Just like in a real estate transactions, you will be responsible for property taxes up to the sale's effective date. If there are outstanding property taxes and the mineral interest is subject to a tax lien, we can incorporate the cost of settling those back taxes into our offer price, ensuring a smooth resolution.

We will mutually agree on a closing date, which will be specified in the sales contract. This is usually within six weeks from the contract date and depends on the completion of a title review. At closing, you will receive payment via cashier’s check or bank wire, ensuring immediate access to your funds.