Oil And Gas Leases
Most of the largest oil fields in the US and offshore happen to be tapped to their potential, and so exploration businesses are turning their attention to 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 benefit from the very fact their states happen to be listed as having the highest amount of active mineral production within the united states based on the us Minerals Management Service. Most individuals in these states are currently profiting 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 may be prepared 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 of the risk for the potential of 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 price 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 a half billion dollars. That is a lot of cash! 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 component 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 desire to have a lawyer or broker present to get the best out of these potentially profitable deals. For the price of a little bit of time you could be among the lucky few making millions off the oil in your own backyard. Is not that worth a little more research?
Contact your local USGS representatives to determine precisely what the geological surveys within your region point to as far as oil, gas, or minerals. In the event you are within an area of dense oil, gas, or mineral deposits you may wish to take advantage of this lucrative option.
Do you own property in Colorado, Kansas, Kentucky, Louisiana, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas, West Virginia or easyzoom.com noted Wyoming? Based on the united states Minerals Management Service and the USA Department of Energy, these states possess the highest amount of actively producing gas and oil wells. If you reside in one of these or some other state, you might 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 the 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, similar to 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 just 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 could 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 related to such a venture.
In the example of the potential oil/gas deposit being located on or under government land, an arrangement is usually made whereas the common industry-standard amount will be 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 the property is a potential oil/gas source, it's recommended that you seek legal counsel immediately as a way to 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.
