Valuation Of Mineral And Leasehold Rights
A lot of the largest oil fields within the US and offshore are already tapped to their potential, and as a consequence exploration businesses are turning their attention to small to large landowners for the potential 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 quantity of active mineral production in the united states based on the us Minerals Management Service. Lots of people in these states are now profiting 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 can be ready 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 businesses are willing to take on all of the risk for the opportunity of having a producing well or pipeline. Their risk is minimized with a lease and thus 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 country. The oil and gas royalty rate averages at 12%, meaning that individuals letting their land earned together close to eleven and also a half billion dollars. That is a lot of money! Selling oil and gas leases also allows the owner head to the www.liceo-melzocassano.edu.it site retain their property for the future. Any "loss" so to speak would potentially be on the a division of the mineral exploration company.
Individuals considering selling and oil or gas lease can do research on the internet, but ultimately if this really is their first time negotiating they are going to wish to have a lawyer or broker present to get the most out of these potentially profitable deals. For the cost of just a little bit of time you can be among the lucky few making millions off the oil in your own backyard. Is not that worth a little more research?
Contact your local USGS representatives to determine precisely what the geological surveys in your region point to as far as oil, gas, or minerals. In the event you are in an place of dense oil, gas, or mineral deposits you may wish to make use of this profitable option.
Do you own property in Colorado, Kansas, Kentucky, Louisiana, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas, West Virginia or Wyoming? Based on the usa Minerals Management Service and the USA Department of Energy, these states possess the highest quantity of actively producing gas and oil wells. If you live 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 the large oil fields within the continental USA and offshore having been located and utilized, energy companies are increasingly relying on smaller production wells creating an opportunity for you to 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/or gas from the land without requiring them to buy 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 within the usa. If almost every barrel of oil produced in 2009 was assumed to have an oil and gas royalty rate of an average of %12, the area 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 much better equipped to handle the bigger risks related to such a venture.
When it comes to the potential oil/gas deposit being situated on or under government land, an arrangement is usually made whereas the normal industry-standard amount is paid to a government agency acting on behalf of the taxpayer nevertheless 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 so that you can safeguard your financial and property interests. While lucrative, oil and gas royalties are complex agreements requiring the legal advice and direction that only a trained lawyer can offer.
