Mineral Title Analysis

Getting involved with the ownership of minerals underneath the ground is mouse click the following webpage domain of oil 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. There are actually some limitations concerning such investment opportunities but there is also the possibility of big payouts.

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

Owning interests in oil and gas will remain in perpetuity. Therefore however 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 advantage of no liability issues. Liability issues may be between the working interest and also the government or between the subcontractors as well as the operators of the well itself. There are environmental liabilities that must be considered, property damage, injury, and of-course common liability problems with debtors and also a company going under. Liens held against the operations of the well could also occur which places those that have working interest at a disadvantage if there are injuries or a lawsuit is brought again the company producing the resource.

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

Luck as in most investments in life may also play a big part. However not actively associated with the production, sometimes more wells will be drilled on the exact same lease meaning 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 and other types of investment, no capital calls are allowed. Those holding interest in oil or gas will not have to worry about requests for payment because those interest holders are divorced from the actual operation of the well such as drilling.