FREQUENTLY ASKED QUESTIONS

What is the difference between minerals and royalties?

Mineral owners generally have executive rights and can execute oil and gas leases, collect lease bonuses and any delay rentals. Royalty owners share in what is produced and saved from an oil or gas well, do not execute oil and gas leases nor collect lease bonuses.

How are mineral rights or royalties evaluated to establish a value?

Bull Run Acquisitions leverages it’s knowledge about each state, basin & play to formulate an offer. There is no measurement or quantitative method governing our offer. Prices are set on a per-deal basis, with a basement price that is pre-determined before working in any one particular area.  Ideally, there is a multitude of information that is examined, (i.e. production volumes, how big the reservoir may be, geologic risk, and even things like interest rates and politics. we form our own theories on the factors that can change, and Independently speculate on what the prices could be.)

Why should I sell to Bull Run?

Because we are honest, transparent, professional, and we do what we say we are going to do.  Click HERE for testomonials from REAL landowners on their experience of doing business with Bull Run Acquisitions.

How to calculate royalty interest?

Generally your property is in a unit. To calculate your royalty interest in a unit, divide the number of (net) mineral acres you own within the unit by the total acres within the unit, and finally multiply this by your royalty interest listed in your oil & gas lease.

Follow this example below:
Net mineral acres: 42 Acres
Unit size: 640 acres
Royalty in lease: 18.75% or 3/16ths
Royalty interest: 42 acres/640acres x .1875 royalty = 0.0123046 royalty interest

Why does my check vary from month to month?

There are many reasons that your royalties check may vary from month to month, including: changes in the price of oil and gas; changes in the amount of production from the well or wells; changes in the number or months of production included in your check; weather or road conditions affecting production or sales of production; required work on the well, wells, pipeline or field facilities may have caused the production to cease for all or a portion of the month; adjustments to your royalty payments due to prior payments being incorrectly made; change in operator of the well, wells or field which may delay your royalty check.

If I decide to sell, how long does the process take?

Once you decide to sell the entire process can take as little as two (2) business days to complete. Properties containing multiple tracts or heirship property generally take longer than individual owners or individual plots of land. However, we close within 2-3 weeks 90% of the time.

Am I obligated to accept an offer made by Bull Run Acquisitions?

ABSOLUTELY NOT.  We stand behind our offers 100%, but ultimately, at the end of the day, a sale is strictly the owner’s decision. Our offers are made without cost or obligation. Also be assured that any offer to you will be handled professionally, discretely and with absolutely no sales “tricks”. 

How do I obtain an offer?

Simply email our Team Leader J.R. Mabry at jrmabry@bullrunacq.com or fill out our Request An Offer Form

Who do we buy royalties and minerals from?

BULL RUN buys interests from all kinds of owners including individuals, estates, trusts, and companies. Our purchases vary in size from one acre to thousands of acres. 

Can I sell my royalty or my minerals if there is no production? 

Yes! You can sell regardless of whether production has occurred under your lease or not. 

How long does the law of Louisiana prescription affect this deal?

In the State of Louisiana, the Mineral Estate can only be severed from the Surface Estate 10 years severed from the Surface Estate absent production.  So basically, if you sell to Bull Run, and no production occurs, or production stops, the Royalty or Minerals revert back to the Surface owner. 

 

HOW IT WORKS??

Typically we close in 2-4 weeks. Should we run-into title (record of ownership) problems, it may take a little longer, or until our curative team resolves any clouds on your title.  Usually, there are 7 steps to entering and closing a contract with Bull Run Acquisitions II, LLC.

  1. First, we agree verbally, or in writing that you accept our offer
  2.  Second, we will mail you the paperwork consisting of a Purchase & Sale Agreement; and a Deed.
  3. Third, review the paperwork to ensure all information is correct, if any changes need to be made, initial each change in the margin beside it.
  4. Fourth, go before a notary and sign the documents, EXACTLY AS YOUR NAME APPEARS.
  5. Fifth, within five (5) business days after receipt of the properly executed and notarized documents, Bull Run will mail you a non-refundable deposit check for the earnest money/ down payment and begin checking your title.
  6. Sixth, upon our review & confirmation that record title is clear and marketable, we will issue the final payment pursuant to the Purchase and Sale Agreement.
  7. Seventh, both parties walk away happy!