Oil And Gas Lease
Most of the largest oil fields within the US and offshore seem to be tapped to their potential, and thus 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 benefit from the truth their states have been listed as having the highest quantity of active mineral production in the united states based on the usa Minerals Management Service. Many folks in these states are now gaining from an oil and gas royalty. You may be one, too.
Smaller fields will be the future of oil production within the US and exploration companies know this. They are prepared to make deals of oil and gas royalties to individuals willing to sell the rights, lease the rights, or sell working interests to their lands. Exploration businesses are willing to take on all the risk for the potential 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 price of oil has gone steadily upwards. In 2009 $137,000,000.00 worth of gas was produced in the united states. The oil and gas royalty rate averages at 12%, meaning that individuals letting their land earned together close to eleven as well as a half billion dollars. That is 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 part of the mineral exploration company.
Individuals considering selling and oil or gas lease can do research on the net, but ultimately if this really is their first time negotiating they are going to wish to have a lawyer or broker present to obtain the best out of these potentially profitable deals. For the cost of just a little bit of time you may be among the lucky few making millions off the oil within your own backyard. Isn't that worth a bit more research?
Contact your local USGS representatives to find out what the geological surveys within your region point to as far as oil, gas, or minerals. If you're in an area of dense oil, gas, or mineral deposits you might 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 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 some 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 the 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 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, similar to 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 america. If every single barrel of oil produced in 2009 was assumed to have an oil and gas royalty rate of a normal of %12, the area average - private individuals leasing the production of oil on private lands could 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 better equipped to deal with the bigger risks related 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 will be 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 Leasing and gas royalties are complex agreements requiring the legal advice and direction that only a trained lawyer can offer.
