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REAL ESTATE OPERATIONS
 6 Months Ended
Jun. 30, 2024
REAL ESTATE OPERATIONS  
REAL ESTATE OPERATIONS

NOTE 6. REAL ESTATE OPERATIONS

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Real Estate Operations

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Land and development costs at June 30, 2024 and December 31, 2023 were as follows (in thousands):

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As of

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June 30, 2024

    

December 31, 2023

Land and Development Costs

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$

300

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$

358

Subsurface Interests

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—

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373

Total Land and Development Costs

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$

300

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$

731

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Subsurface Interests. As of December 31, 2023, the Company owned 352,000 acres of Subsurface Interests. The Company sold its remaining acres of Subsurface Interests during the six months ended June 30, 2024 for $5.0 million, or a gain on sale of $4.5 million.

The Company historically leased certain of the Subsurface Interests to mineral exploration firms for exploration. The Company’s subsurface historical operations consisted of revenue from the leasing of exploration rights and in some instances, additional revenues from royalties applicable to production from the leased acreage, which revenues are included within real estate operations in the consolidated statements of operations. There were no sales of subsurface oil, gas, and mineral rights during the six months ended June 30, 2024. During the three and six months ended June 30, 2023, the Company sold subsurface oil, gas, and mineral rights of 604 acres for a sales price of $0.1 million and 3,016 acres for a sales price of $0.4 million, respectively.

The Company historically released surface entry rights or other rights upon request of a surface owner for a negotiated release fee typically based on a percentage of the surface value. Cash payments for the release of surface entry rights totaled $0.1 million and $0.2 million in the six months ended June 30, 2024 and 2023, respectively.

Mitigation Credits. The Company owns an inventory of mitigation credits with a cost basis of $0.4 million as of June 30, 2024. As of December 31, 2023, the Company owned mitigation credits with an aggregate cost basis of $1.0 million.

Revenues and the cost of sales of mitigation credit sales are reported as revenues from, and direct costs of, real estate operations, respectively, in the consolidated statements of operations. During the six months ended June 30, 2024, 10.14 mitigation credits were sold for $1.3 million, resulting in a gain on sale of $0.3 million. During the six months ended June 30, 2023, 8.41 mitigation credits were sold for $1.0 million, resulting in a gain on sale of $0.3 million.