Why should I lease with DNRC LLC?
Fundamentally, DNRC LLC is a rapidly growing company and currently maintaining double digit growth since inception. We have implemented state-of-the-art technology to build the core foundation for our accounting, land, geology, engineering, and operations. Each of these key areas have been important long-term investments as we execute on our long-term growth plans. While we are not a multi-thousand person company, we use virtually the same technology as other much larger players allowing our mineral owners, employees, and investors to all collectively benefit. We focus on bringing value to all parties involved to create the win-win-win situation that is part of our core ethos.
Why should I lease with you instead of another company?
This is the most common question we get. The answer is simple. We are competitive and want you to lease with us. As a result, we will typically "out-bid" the standard lease terms of other companies. More importantly, we are building and gathering CO2 reserves to then conduct a EOR operation on a future oil field where we will ultimately **use** the CO2. As a result, the CO2 will be used / sold at a market premium compared to what our primary competitors offer. In summary, leasing with DNRC yields substantially more value to the mineral owner for the same acreage.
What is the difference between leasing and selling my mineral rights?
Leasing is a revenue-sharing contractual arrangement in which a mineral owner shares in the proceeds of any minerals produced from his or her property with the lessee for as long as the lease is in effect and valid in exchange for not having any operational risk in the production or operations. In contrast, the sale of minerals involves forever selling the minerals with no future participation in their production. Once the minerals are sold in exchange for a one-time payment, the rights to the minerals are for the benefit of the buyer, resulting in the loss of any future income associated with the production of those minerals. Some mineral owners prefer to receive a monthly royalty check instead of a lump sum when mineral rights are sold. The lease will contain the royalty percentage that the mineral owner will receive once in pay status.
What if I sell my home?
Surface ownership of real property and mineral ownership are two different issues; however, this greatly depends on which state you own property (e.g. Tennessee and Texas are completely different). As a result, it is usually possible to own surface rights and not own the minerals and vice versa. Surface property usually can be sold to another individual while still maintaining the ownership of the minerals underneath that property. Often, real property value or selling price may increase when the minerals are included or decrease when they are excluded. If you plan to retain your mineral ownership when you sell your home, your deed will need to expressly reserve these rights.
I still have many questions. What should I do?
Contact us. We will be happy to speak with you to make sure you are comfortable prior to signing any document.