What are Mineral Rights ?

Minerals rights are rights to subsurface materials like gravel, silver, gold, stone, oil, natural gas and geothermal energy.  Mineral rights are one of the "bundle of rights" that are typically conveyed when a fee simple ownership is transferred.  A title insurance policy will normally reveal if a "reservation" of the mineral rights or other rights has occurred over time.  Many owners, including the federal government, typically reserve mineral rights in Patents that convey the property that they own.  An attorney with expertise in real estate law can advise an owner regarding which rights have been reserved.

When. mineral rights have been proven to have value, an appraiser can take that information into account in the appraisal report.  Appraisers work with Geologist who establish the quality and the quantity of the minerals available for removal, the extraction costs and the value of the remainder after extraction.

A study of the supply and demand for the minerals available for removal is also important in the analysis.  While a property may have significant gravel, if demand is low or if the location of the property is too far from buyers it may not be financially feasible to use the minerals.   

Contact us with your questions or concerns regarding mineral rights or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.