Oil And Gas Lease Review
Most 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 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 benefit from the very fact their states are already listed as having the highest quantity of active mineral production inside the usa as outlined by the us Minerals Management Service. Lots of people in these states are now taking advantage of an oil and gas royalty. You can be one, too.
Smaller fields will be the future of oil production within the US and exploration companies know this. They can 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 prepared 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 cost of oil has gone steadily upwards. In 2009 $137,000,000.00 worth of gas was produced within the usa. The oil and gas royalty rate averages at 12%, meaning that individuals letting their land earned together close to eleven and a half billion dollars. That's a lot of money! 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 part of the Mineral and Leasehold Acquisition exploration company.
Individuals considering selling and oil or gas lease can do research via the internet, but ultimately if this is their first time negotiating they're going to wish to have an attorney or broker present to obtain the most out of these potentially lucrative deals. For the price of a little bit of time you could be among the lucky few making millions off the oil within your own backyard. Isn't that worth a little more research?
Contact the local USGS representatives to see what the geological surveys in your region point to as far as oil, gas, or minerals. In the event that you are within an area of dense oil, gas, or mineral deposits you could 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? In accordance with the usa Minerals Management Service as well as the USA Department of Energy, these states possess the highest amount 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 of 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 the opportunity 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 as a result of 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 united states. If each and every 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 would have earned approximately $11,400,000.00, more than 11 million dollars (approximately the GDP of Jamaica). The benefit of this arrangement is the fact 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 related to such a venture.
In the case of the potential oil/gas deposit being found on or under government land, an arrangement will typically made whereas the typical industry-standard amount is paid to a government agency acting on behalf of the taxpayer though the rate falls under Federal jurisdiction under this circumstance. If you believe that the 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.
