Mineral Title Analysis
Choosing a company you can lease your oil and gas royalty to may be difficult. It is important to aspect in their financial standing, their reputation in the field, or if perhaps also they can maximize income which won't cost you any overhead. But in certain cases, within the eagerness of the landowner to liquidate his assets, he forgets one little detail: the paperwork.
Simply, wouldn't it be nice should you not have to concern yourself with the cumbersome bureaucratic red tape?
Believe it or not, some gas companies do handle the tedious task of preparing the legal documents to complete the lease or sale so you may just sit back and wait for the papers to be sent to your lap for signature. Simply, allowing the company to draw the contract without at least having your own legal expert look into it is downright irresponsible.
In gas and oil industry, there is such a thing as Oil and Gas Lease Review and gas deed to transfer ownership to your heirs or even the new owners. To cover all your bases, it's probably good to be well-versed about the various kinds prior to deciding to even try to lease or sell your property.
Royalty deed: This is a really clear-cut binding document. By signing this, you enable the company to explore, drill and operate your property for oil, gas as well as other minerals for a pre-determined amount. This kind of deed, conversely, will not cover exclusive leases and bonuses.
Mineral deed: Just a little variation of the royalty deed, although in this particular case you transfer the proper to execute leases and bonuses.
Joint tenant deed: This document only applies in the event the property is owned by two or maybe more individuals. If one of the owners dies, his share reverts to the company and may be equally divided by the remaining partners.
Life estate deed: As can be gleaned from the term, signing this contract will mean a regular pension for a specific period depending on the terms of payment. You get a share of the income from as long as you're alive. Within the event of your death, in contrast, your share reverts back to the grantor. This kind is normally done when the landowner wishes to liquidate his assets but desires to get a little bit of extra in return.
Quit claim deed: Typically referred to as quick claims. This transfers any royalty right with no warranty of the mother title.
