IP Forms Mineral Rights Management JV with Natural Resource Partners

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Natural Resource Partners (NRP), Houston, Texas, USA, and International Paper (IP), Memphis, Tenn., this week agreed to form a joint venture to own and manage current leases as well as further development of more than 7 million mineral acres currently held by IP. NRP will be the managing and controlling partner with a 51% interest, including a cumulative preferred distribution from the joint venture before profit sharing commences. NRP will pay IP approximately $42.5 million at closing, which is anticipated to occur in mid-June.

The more than 7 million acres are located in 31 states and consist of reserves of oil and gas, coal and aggregates, as well as the rights to develop coal bed methane, geothermal, CO₂ sequestration, water rights, cell towers, other precious metals, industrial minerals, and base metals. Royalties are currently generated from active leases from oil and gas, coal, aggregates, and cell towers with upside potential from additional leasing and development. Approximately three-fourths of the acreage is located in the U.S. Gulf Coast Region, with the second largest area being the Pacific Northwest.