Mineral Title Analysis

Getting associated with the ownership of minerals underneath the ground is the domain of Oil and Gas Lease Review and gas royalty interest programs or deals. These kinds of deals involve receiving a portion of the proceeds from extraction of natural resources like oil and gas. You can find some limitations concerning such investment opportunities but there's also the prospect of big payouts.

Several of the advantages of owning an oil and gas interest run the gamut and in general are less riskier than owning a genuine well. Owning a well introduces a host of problems including messy liability issues as well as major expenditures for production.

Owning interests in oil and gas will remain in perpetuity. Therefore although the working interest of a particular well may change hands several times, the interest of the royalty holder will remain intact throughout these changes.

Holding oil or gas royalty interests has the added benefit of no liability issues. Liability issues can be between the working interest and also the government or between the subcontractors and also the operators of the well itself. There are actually environmental liabilities that has to be considered, property damage, injury, and of-course common liability problems with debtors as well as a company going under. Liens held against the operations of the well may also occur which places individuals with working interest at a disadvantage if you will find injuries or a lawsuit is brought again the company producing the resource.

Another benefit is the fact that you can find no extra costs related to owning an oil and gas interest. The working interest will be the sole responsible party in all of the operational costs for the well. This will likely include metering, plugging, pumping, up to and including abandonment.

Luck as in most investments in life may also play a big part. Even though not actively linked to the production, sometimes more wells will be drilled on the same lease that means that the owners of the oil or gas interest will take advantage of the extra sales following production from the new wells. All again without the operational cost.

Unlike in real-estate as well as other types of investment, no capital calls are allowed. Those holding interest in oil or gas will not have to be concerned about requests for payment because those interest holders are divorced from the actual operation of the well such as drilling.