Oil And Gas Company Guidance

Picking a company that you may lease your oil and gas royalty to may be difficult. You should factor in their financial standing, their reputation in the field, or if perhaps they may maximize income which will not 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.

Basically, wouldn't it be nice if you don't have to worry about 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. Remember, 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 deed to transfer ownership to your heirs or even the new owners. To cover all of your bases, it's probably good to be well-versed about the different kinds before you even try to lease or sell your property.

Royalty deed: This is a very clear-cut binding document. By signing this, you allow the company to explore, drill and operate your property for oil, gas and other minerals for a pre-determined amount. This type Acquisition of Mineral and Leasehold Rights deed, however, won't 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 when the property is owned by two or more individuals. If among the owners dies, his share reverts to the company and can be equally divided through the remaining partners.

Life estate deed: As may be gleaned from the term, signing this contract will mean a regular pension for a certain period according to the terms of payment. You get a share of the income from as long as you're alive. In the event of your death, conversely, your share reverts back to the grantor. This kind can be done in the event the landowner desires to liquidate his assets but wants to get a little bit of extra in return.

Quit claim deed: Also known as quick claims. This transfers any royalty right with no warranty of the mother title.