TRP Minerals strives to empower every mineral owner with the best information so that they can make the best and most informed decision to create value from their minerals. Let us help you create lasting value today!
Most states utilize a land grid that allows for a standard to locate properties. The most common land grids have been created by utilizing Sections - Townships - Range. Below is a quick overview of how a land grid works.
Every minerals location has different variables. One of the most common variables that effect mineral value is the proximity to oil and gas pipelines.
The physical location of minerals effects the future value of minerals based on the cost to access and build the site.
States and local municipalities have different rules and regulations that govern the oil and gas industry. High regulatory environments can effect the value of your minerals.
Township is the largest grouping of land described in the land grid.
Range is assigned to a township by measuring east or west of a Principal Meridian.
The location of a specific township is determined by its 'Township & Range.' These are referenced from the State's Principal Meridian and Base Line. As a mineral owner, there's no need to know the exact locations of the Principal Meridian or Base Line, as any county land map will display the Township & Range.
Townships are divided into 36 sections. Each section is a one mile square containing 640 acres.
When identifying where your minerals are located, we always suggest with starting with the Township and then move to the Section.
For example, the following land description reads: 2-4N-2W
Many land descriptions need to address tracts smaller than a 640-acre section. To further break down these smaller parcels, states use Quarter Sections.
Similar to how Townships are divided into 36 sections, Sections can also be broken down into Quarter Sections. We recommend starting from the largest to the smallest description when reading land descriptions.
For example, consider the following land description: NW1/4 of NE1/4 Sec. 2 T4NR2W.
As shown above, we’ve already identified the Section, Township, and Range. Start with the largest description—in this case, the NE1/4 of the Section. Once we’ve identified the NE1/4 of the Section, we can divide it further into quarters. The next Quarter Section is the NW1/4 of the NE1/4, which contains 40 acres.
You can repeat this process down to 10-acre parcels by continuing to add additional Quarter Sections.
We traditionally pay a lump sum of cash within 10 business days after you sign the purchase and sale agreement.
Each mineral location has different variables that can impact its value. One of the most common variables is proximity to oil and gas pipelines.
If a mineral location doesn't have direct access to pipelines, operators must transport the oil to the nearest terminal using trucks, where it can then be moved by pipeline or rail. Trucking costs can be high, which lowers the price the operator can receive for the oil. Additionally, natural gas that cannot be transported via pipeline is often flared, yielding no value.
If the mineral location has access to pipelines with significant capacity, oil and gas can be sold at a premium due to the reduced transportation costs and increased market access.
We focus on areas that we know best in order to provide the highest level of expertise.
The physical location of minerals plays a significant role in their future value.
In many cases, the location of minerals can create challenging environments for drilling. For instance, if minerals are located deep in the mountains with limited road access, the costs to drill and complete a well increase significantly. As a result, when oil and gas prices are lower, operators are less likely to drill new wells, which can decrease the value of the minerals.
If the minerals are located in an urban area, the costs associated with drilling and completing wells can also rise. This can lead operators to delay drilling new wells until commodity prices increase dramatically.
At TRP, we hope that the accessibility of your minerals is straightforward, enabling you to extract the highest possible value.
We aim to empower you with the best information and knowledge, helping you make informed decisions to capture the highest value for your minerals.
States and local municipalities have varying rules and regulations that govern the oil and gas industry.
In states with stringent or politically challenging regulations on the oil and gas industry, future mineral value can be negatively impacted. Specifically, states or local municipalities that impose significant setbacks, decrease flare volume, reduce truck traffic, or introduce other restrictions may limit or eliminate future drilling opportunities, thereby lowering the potential value of your minerals.
We always encourage mineral owners to understand their state and local rules and regulations. Decisions made by governing bodies can have a drastic impact on the value of your minerals.
TRP Minerals strives to empower every mineral owner with the best information so that they can make the best and most informed decision to create value from their minerals. Let us help you create lasting value today!
Most states utilize a land grid that allows for a standard to locate properties. The most common land grids have been created by utilizing Sections - Townships - Range. Below is a quick overview of how a land grid works.
Every minerals location has different variables. One of the most common variables that effect mineral value is the proximity to oil and gas pipelines.
The physical location of minerals effects the future value of minerals based on the cost to access and build the site.
States and local municipalities have different rules and regulations that govern the oil and gas industry. High regulatory environments can effect the value of your minerals.
Township is the largest grouping of land described in the land grid.
Range is assigned to a township by measuring east or west of a Principal Meridian.
The location of a specific Township is determined by the combination of "Township & Range". The Township & Range are reverenced from the State's Principal Meridian and the Base Line. For any given mineral owner, there is no need to know where the Principal Meridian or Baseline is located as any county land map will show the Township & Range.
Townships are divided into 36 sections. Each section is a one mile square containing 640 acres.
When identifying where your minerals are located, we always suggest with starting with the Township and then move to the Section.
For example, the following land description reads: 2-4N-2W
Many land descriptions will need to describe lands that are smaller than a 640 acre Section. To fuller delve into smaller tracts, States utilize Quarter Sections.
Similar to how Townships are broken into 36 sections, Sections can be broken into a number of Quarter Sections. We recommend starting backwards or biggest to smallest.
For Example, the following land description reads: NW1/4 of NE1/4 Sec. 2 T4NR2W
We traditionally pay a lump sum of cash within 10 business days after you sign the purchase and sale agreement.
Every minerals location has different variables. One of the most common variables that effect mineral value is the proximity to oil and gas pipelines.
If the mineral location does not have direct access to pipelines, operators must truck oil to the nearest terminal where the oil can be moved by pipelines or trains. Trucking cost can be expensive and lower the price the operator can sell the oil. the natural gas is flared when it cannot be moved in a pipeline yielding no value.
If the mineral's location has access to pipelines with significant capacity, oil and gas can be sold a premium.
We focus on areas that we know best in order to provide the highest level of expertise.
The physical location of minerals effects future value of minerals.
In many cases, mineral location can create difficult environments to drill. For example, if a mineral is located deep in the mountains with minimal road access, the cost to drill and complete a well goes up significantly. As a result, when oil and gas prices are lower the operator will most likely not drill new wells thus decreasing the value.
If the mineral's location is in an urban area, cost related to drilling and completing wells can increase causing operators to delay drilling new wells till commodity prices increase dramatically.
TRP always hope that the accessibility of your minerals is easy so that you can reach extract highest value possible.
We strive to help facilitate your decisions so that you are empowered with the best information and knowledge so that you can capture the highest value of your minerals.
States and local municipalities have different rules and regulations that govern the oil and gas industry.
In states where there are stringent and/or adverse political pressure for the oil and gas industry will negatively effect future mineral value.
Specifically, states and local municipalities that have or are contemplating significant set backs, decreasing flare volume, reduction of truck traffic, and other variables will decrease or eliminate future drilling locations thereby decreasing the potential value of your minerals.
We always encourage mineral owners to understand state and local rules and regulations. Decisions mandated by the governing bodies can drastically impact your mineral's value.
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