Valuation Of Mineral And Leasehold Rights
Most of the largest oil fields in the US and offshore seem to be tapped to their potential, and thus exploration companies are turning their focus on 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 benefit from the truth their states happen to be listed as having the highest amount of active mineral production in the country in accordance with the us Minerals Management Service. Many folks in these states are currently 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 may be ready 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 businesses are prepared to take on all 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 inside america. 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 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 a division of the mineral exploration company.
Individuals considering selling and oil or gas lease can do research on the web, but ultimately if this is their first time negotiating they will desire to have a lawyer or broker present to obtain the most from these potentially profitable deals. For the price of just a little bit of time you could be one of the lucky few making millions off the oil within your own backyard. Isn't that worth a little more research?
Contact your local USGS representatives to find out precisely what the geological surveys within your region point to as far as oil, gas, or minerals. In case you are within an area of dense oil, gas, or Mineral Title Analysis deposits you might 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? In line with the states Minerals Management Service and also the USA 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 every other state, you may 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 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 someone property owner or group of investors who are compensated because 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 purchase the land outright, much 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 the usa. If just about every barrel of oil produced in 2009 was assumed to have an oil and gas royalty rate of a normal 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 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 deal with the bigger risks linked to such a venture.
In the example of the potential oil/gas deposit being located on or under government land, an arrangement is commonly made whereas the normal 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 the 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.
