A mineral interest is an economic interest in subsurface minerals. In a mineral interest arrangement, each party individually holds an interest in an oil and gas asset and is also liable for any obligations that may arise. Since no separate legal entity is involved in this arrangement, each party records its proportionate share of the underlying revenues, expenses, assets, and liabilities.
An organization may convey mineral interests in its properties to a third party, perhaps to spread risk or to obtain additional financing. These conveyances may involve the transfer of some or all of the rights and responsibilities associated with a property.