What To Do With Small Mineral Rights

[@Unboxingandreviews2021]

I'd like to clarify: does small interest in mineral rights refer to mineral rights with a low valuation? Or does it refer to something else?

[@BlueMesaMinerals]

Small minerals are either a very small interest (which happens as minerals are passed from generation to generation), or it could be a larger interest, but the wells are not producing much, so the royalty revenue is very low. Royalty revenue less than $3,000 per year is generally considered small (this wouldn't apply to non-producing minerals).

[@Unboxingandreviews2021]

@@BlueMesaMinerals Okay thank you for explaining!

[@cameronvincent]

is their any for of yearly property tax on mineral rigths

[@BlueMesaMinerals]

Are you asking if there are annual property taxes on mineral rights? If so, the answer depends on where the mineral rights are located. Some states tax both producing and non-producing minerals, some states have tax rules based on the county. In other states, property taxes are deducted from the royalty checks. You should call the county where your minerals are located to determine how they handle property taxes.

[@BlueMesaMinerals]

Really tiny mineral rights are often below a taxable value and therefore, have no property taxes. It depends on the assessed value.

[@guiller7150]

Where would you find small mineral right sellers?

[@cameronvincent]

@@BlueMesaMinerals like if I own 1/10 of the mine do I need to pay 1/10 of the tax?

[@BlueMesaMinerals]

@@cameronvincent We usually talk about oil and gas in terms of wells or leases, not mines. If you are asking about mines for hard minerals, then the tax system might work differently. My knowledge is limited to oil and gas (and related minerals extracted via wells).