Oil And Gas Lease Review
A lot of the largest oil fields within the US and offshore seem to be tapped to their potential, and therefore exploration companies are turning their attention to small to large landowners for the potential for 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 happen to be listed as having the highest quantity of active Mineral Acquisitions production inside america in accordance with the usa Minerals Management Service. Lots of individuals in these states are currently profiting from an oil and gas royalty. You can be one, too.
Smaller fields will be the future of oil production in the US and exploration companies know this. They are ready to make deals of oil and gas royalties to individuals prepared to sell the rights, lease the rights, or sell working interests to their lands. Exploration companies are willing to take on all of the risk for the potential for 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 cost of oil has gone steadily upwards. In 2009 $137,000,000.00 worth of gas was produced within the united states. 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 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 really is their first time negotiating they're going to want to have an attorney or broker present to obtain the most out of these potentially profitable deals. For the cost of a little bit of time you might be one of the lucky few making millions off the oil in your own backyard. Is not that worth a bit more research?
Contact your local USGS representatives to determine what the geological surveys in your region point to as far as oil, gas, or minerals. In case you are within an place 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? In line with the country Minerals Management Service and also the United States Department of Energy, these states possess the highest quantity of actively producing gas and oil wells. If you reside in one of these or any other state, you could 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 Of America and offshore having been located and utilized, energy companies are increasingly relying on smaller production wells creating an opportunity that you should 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, 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 united states. If each and every barrel of oil produced in 2009 was assumed to have an oil and gas royalty rate of an average 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 the fact 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 handle the bigger risks associated with such a venture.
In the example of the potential oil/gas deposit being located on or under government land, an arrangement will typically made whereas the standard industry-standard amount will be 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 your particular 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.
