Mineral Rights: Better than Rebates?

Investors.com is reporting that many homeowners around the U.S. are cashing in mineral rights to their properties. Many of these rights were effectively worthless in the past, but as high-tech extraction methods have advanced and the need for fuel has skyrocketed, those rights have become valuable. Even a relatively small property can bring in more than $6,000 in upfront cash, not to mention royalties down the road, provided it’s sitting on top of a resource like natural gas.

At best, though, the sales of mineral rights are a stop-gap measure for energy companies. We’re not talking about any sort of renewable energy here. Yes, homeowners are getting some money out of the deal, but this money will run out just as soon as the natural gas pocket (or whatever else is under their houses) runs out. However, until that time, energy companies are doing a booming business in picking up small mineral rights — and not so small when they can convince a whole neighborhood or homeowner’s association to take a collective deal. It will hold off the need for renewable energy and clean technology just a little big longer for energy companies.