Oil And Gas Leases

A lot of the largest oil fields in the US and offshore are actually tapped to their potential, and thus exploration companies are turning their focus on small to large landowners for the potential for gaining exploration rights to their lands. Individuals living in Kentucky, Louisiana, Ohio, Pennsylvania, Texas, West Virginia, Oklahoma, Kansas, Texas, New Mexico, Colorado or Wyoming may take advantage of the fact their states are already listed as having the highest amount of active mineral production within the usa based on the usa Minerals Management Service. Many people in these states are presently benefiting from an oil and gas royalty. You may be one, too.

Smaller fields will be the future of oil production in the US and exploration companies know this. They may be willing to make deals of oil and gas royalties to individuals ready to sell the rights, lease the rights, or sell working interests to their lands. Exploration companies are ready to take on all the risk for the potential of having a producing well or pipeline. Their risk is minimized with a lease and so selling oil and gas royalties for land lease is a win-win for both parties.

The price of oil has gone steadily upwards. In 2009 $137,000,000.00 worth of gas was produced in the united states. The oil and gas royalty rate averages at 12%, meaning that individuals letting their land earned together close to eleven as well as a half billion dollars. That is a whole lot of money! Selling oil and gas leases also allows the owner to retain their property for the future. Any "loss" so to speak would potentially be on the included in the mineral exploration company.

Individuals considering selling and oil or gas lease can do research over the internet, but ultimately if this really is their first time negotiating they are going to want to have an attorney or broker present to get the most out of these potentially lucrative deals. For the cost of just a little bit of time you might be among the lucky few making millions off the oil within your own backyard. Is not that worth a little more research?

Contact the local USGS representatives to see precisely what the geological surveys in your region point to as far as oil, gas, or minerals. If you are in an place of dense oil, gas, or mineral deposits you could wish to make use of this lucrative option.

Do you own property in Colorado, Kansas, Kentucky, Louisiana, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas, West Virginia or Wyoming? According to the country Minerals Management Service and also the United States Department of Energy, these states have the highest amount of actively producing gas and oil wells. If you are living in one of these or any other state, you could be able benefit financially from an oil and gas royalty. With most if not all of the large oil fields within the continental USA and offshore having been located and utilized, energy businesses are increasingly relying on smaller production wells creating the chance that you should benefit financially from an oil and gas royalty. Oil and gas royalties are payments made from an oil exploration company to a person property owner or group of investors who are compensated due to the extraction of oil and/or gas from their land(s). This leaves the risky burden to the energy companies to explore for and extract Oil and Gas Lease Review and/or gas from the land without requiring them to purchase the land outright, just like a lease.

The energy sector is increasingly turning to private property owners to help assist in domestic energy production. In 2009 1,938,128 barrels of oil worth approximately $137,000,000.00 were produced in the nation. If every single barrel of oil produced in 2009 was assumed to have an oil and gas royalty rate of the average of %12, the industry average - private individuals leasing the production of oil on private lands could have earned approximately $11,400,000.00, more than 11 million dollars (approximately the GDP of Jamaica). The advantage of this arrangement is that the oil and gas royalty transfers the risk of oil and gas location and extraction from the land owner of nominal means to the larger oil and gas location and extraction company which is better equipped to cope with the bigger risks affiliated with such a venture.

In the example of the potential oil/gas deposit being found on or under government land, an arrangement is commonly made whereas the standard industry-standard amount is paid to a government agency acting on behalf of the taxpayer however the rate falls under Federal jurisdiction under this circumstance. If you believe that your particular property is a potential oil/gas source, it's recommended that you seek legal counsel immediately to be able to safeguard your financial and property interests. While profitable, oil and gas royalties are complex agreements requiring the legal advice and direction that only a trained lawyer can offer.