Oil And Gas Leases

Getting linked to the ownership of minerals beneath the ground is the domain of oil and gas royalty interest programs or deals. These types 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 prospect 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 an actual 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. It means that even though 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 benefit of no liability issues. Liability issues can be between the working interest and the government or between the subcontractors as well as the operators of the well itself. There are actually environmental liabilities that must be considered, property damage, injury, and of-course common liability difficulties with debtors as well as a business going under. Liens held against the operations of the well may also occur which places people that have working interest at a disadvantage if you can find injuries or possibly a lawsuit is brought again the company producing the resource.

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

Luck as in the majority of investments in life also can play a big part. Even though not actively involved with the production, sometimes more wells will be drilled on the exact same lease meaning that the owners Acquisition of Mineral and Leasehold Rights 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 kinds of investment, no capital calls are allowed. Those holding interest in oil or gas will never have to worry about requests for payment because those interest holders are divorced from the specific operation of the well for example drilling.