Acquisition Of Mineral And Leasehold Rights
Most of the largest oil fields within the US and offshore are already tapped to their potential, and thus exploration businesses 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 take advantage of the very fact their states are already listed as having the highest quantity of active mineral production in the united states as outlined by the country Minerals Management Service. Lots of individuals in these states are presently gaining 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 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 businesses are ready 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 also a half billion dollars. That's a great deal of cash! 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 component of the mineral exploration company.
Individuals considering selling and oil or gas lease can do research on the net, but ultimately if this is their first time negotiating they will wish to have an attorney or broker present to get the most from these potentially profitable deals. For the cost of a little bit of time you can be one of the lucky few making millions off the oil in your own backyard. Is not that worth a little more research?
Contact the local USGS representatives to find out just what the geological surveys in your region point to as far as oil, gas, or minerals. In the event you are in an area 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 united states Minerals Management Service as well as the United States Of America Department of Energy, these states have the highest amount of actively producing gas and oil wells. If you live 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 of the large oil fields within the continental United States and offshore having been located and utilized, energy companies are increasingly relying on smaller production wells creating a chance that you can 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 in the nation. If just click the next webpage about every 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 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 better equipped to cope with the bigger risks affiliated with such a venture.
In the case of the potential oil/gas deposit being found on or under government land, an arrangement is typically made whereas the normal industry-standard amount is paid to a government agency acting on behalf of the taxpayer even so 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 profitable, oil and gas royalties are complex agreements requiring the legal advice and direction that only a trained lawyer can offer.
