Mineral And Leasehold Acquisitions

Most of the largest oil fields in the US and offshore seem to be tapped to their potential, and so exploration companies are turning their attention to small to large landowners for the opportunity of 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 have been listed as having the highest amount of active mineral production inside america based on the country Minerals Management Service. Most individuals in these states are currently gaining from an oil and gas royalty. You may be one, too.

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

The cost 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 lot of cash! Selling oil and gas leases also allows the owner to retain their property for the future. Any "loss" so to talk would potentially be on the a component of the mineral exploration company.

Individuals considering selling and oil or gas lease can do research on the net, but ultimately if this is their first time negotiating they will wish to have a lawyer or broker present to obtain the most out of these potentially lucrative deals. For the price of just a little bit of time you could be one of the lucky few making millions off the oil in your own backyard. Is not that worth a little more research?

Contact the local USGS representatives to determine just what the geological surveys in your region point to as far as oil, gas, or minerals. In the event that you are in an area of dense Oil and Gas Lease, gas, or mineral deposits you could wish to take advantage of this profitable option.

Do you own property in Colorado, Kansas, Kentucky, Louisiana, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas, West Virginia or Wyoming? In accordance with the country Minerals Management Service and the USA Department of Energy, these states have the highest quantity of actively producing gas and oil wells. If you live in one of these or every other state, you might be able benefit financially from an oil and gas royalty. With most if not all the large oil fields within the continental United States Of America and offshore having been located and utilized, energy businesses are increasingly relying on smaller production wells creating a 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 someone 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/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 inside america. If each and every barrel of oil produced in 2009 was assumed to have an oil and gas royalty rate of a typical of %12, the sector average - private individuals leasing the production of oil on private lands might 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 typically made whereas the typical industry-standard amount is paid to a government agency acting on behalf of the taxpayer although the rate falls under Federal jurisdiction under this circumstance. If you believe that your property is a potential oil/gas source, it's recommended that you seek legal counsel immediately in order 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.