If you are living in Texas, you must be interested in knowing about Texas gas royalty and the difference between Texas mineral rights and Texas surface rights.
Considering the shortage of oil worldwide, rising fuel prices, and Middle East acting pricey, there has been an apparent race among the drillers and mineral development companies to explore more mines in Texas than ever. Not all land owners know how to deal with drillers and mineral development companies as regards Texas gas royalty laws and the Texas mineral rights up their sleeves, if any.
It is any day attractive for the landowners to think about the bonus and money their land may generate. However, wake up time it is when they learn about the fundamental difference between surface owners and Texas mineral rights.
In case the landowners don’t explicitly reserve their rights over minerals in the document of transfer of property, the buyer automatically gets the mineral rights along with surface rights.
Thursday, December 10, 2009
Sunday, November 29, 2009
Logic behind mineral leases and oil gas royalties
The term mineral is comprehensive and may include anything from fossil fuels like natural gas, oil and coal to metals, rocks and even gravel, sand or peat. The rights to extract minerals are safe with the owner of the mineral rights, which gives rise to possibility of oil gas royalties etc.
Mineral leases are formal agreements between the owner of mineral rights and mineral development company for mutual benefit. Mineral owners go for oil gas royalties in lieu of leasing their mineral rights to the mineral development company.
Mineral leases are highly defined legal documents that specify the terms between the land owner and the mineral development company. These leases elaborate on which all minerals may be extracted, how much the extraction is going to take place, how long is it going to continue and what will be the compensation for any damages to the trees and crops on the surface.
Mineral leases are formal agreements between the owner of mineral rights and mineral development company for mutual benefit. Mineral owners go for oil gas royalties in lieu of leasing their mineral rights to the mineral development company.
Mineral leases are highly defined legal documents that specify the terms between the land owner and the mineral development company. These leases elaborate on which all minerals may be extracted, how much the extraction is going to take place, how long is it going to continue and what will be the compensation for any damages to the trees and crops on the surface.
Wednesday, November 18, 2009
Be Fully Knowledgeable About Mineral Rights Laws
As a property owner in the USA you need to know all about mineral rights laws. In most other places it doesn’t matter whether there are minerals lying under the surface of your property. It all belongs to the state anyway! So you must know firstly what all constitutes the word “minerals”. All metals and ores, non-metals, fossil fuels and sand, marl, peat and even rocks are all minerals. If there are minerals and you can find a buyer then you need to draw up a lease agreement with the buyer. Once the agreement is signed you get a compensation called the lease bonus. Once say the oil production starts you get the mineral royalty. There are laws governing these mineral rights and royalties in every state. Your oil and gas attorney will guide you about the laws and help you with the lease. Make sure you get full value for your property.
Sunday, November 8, 2009
A brief on Colorado mineral rights
Colorado mineral rights were legalized in 1916. From then, the surface rights were legally considered as distinct from mineral rights. Different parties could indeed own or have the lease rights with respect to the surface rights and the mineral rights for the same tract of land. The two were then legally separable and could be sold or leased in the "severed" condition.
Simultaneously the state considered favorably the right of the party to "access" the land it was legally in possession of. Therefore, if you own the surface rights to a property, whereas a company owns its mineral rights, you have to grant access to the company to extract minerals from your property.
Like US mineral rights and legalities applicable in other US states, when companies dig oil wells in your property, they are required pay you for damages caused to your property due the drilling. The company also requires to pay you in case its pipelines run across your property.
Simultaneously the state considered favorably the right of the party to "access" the land it was legally in possession of. Therefore, if you own the surface rights to a property, whereas a company owns its mineral rights, you have to grant access to the company to extract minerals from your property.
Like US mineral rights and legalities applicable in other US states, when companies dig oil wells in your property, they are required pay you for damages caused to your property due the drilling. The company also requires to pay you in case its pipelines run across your property.
Wednesday, October 28, 2009
Essentials To Take Care Before Signing Your Lease Document
A visit by an oil and gas company spells money! If you possess mineral rights to your property and if your property possesses oil or minerals of substantial worth there are chances for you to break a good handsome deal in exchange of the mineral rights on an oil gas lease.
However, before you sign the dotted line, take care of the following points:
- Check out the antecedents of the oil and gas company.
- Hire a local oil and gas attorney conversant with the state laws regarding the lease.
- Check with your neighbors who might have already struck oil in their properties and get the local rates obtainable for the bonus value and the royalty.
- Be prepared for tough negotiations in order to obtain favorable terms pertaining to the initial term, the bonus and the royalty. Make sure you are suitably indemnified against any accidental loss to your movable and immovable properties.
- Sign only the oil gas lease and not the other minerals.
However, before you sign the dotted line, take care of the following points:
- Check out the antecedents of the oil and gas company.
- Hire a local oil and gas attorney conversant with the state laws regarding the lease.
- Check with your neighbors who might have already struck oil in their properties and get the local rates obtainable for the bonus value and the royalty.
- Be prepared for tough negotiations in order to obtain favorable terms pertaining to the initial term, the bonus and the royalty. Make sure you are suitably indemnified against any accidental loss to your movable and immovable properties.
- Sign only the oil gas lease and not the other minerals.
Tuesday, October 20, 2009
Basics of crude oil demand
USA is one of the prominent names for crude oil buyers all over the world. According to an estimate, USA alone produced around 9 million barrels of crude oil per day in 2005 and yet exported more than13 million barrels every day from other countries!
Considering that US is one of the numerous crude oil buyers, the figures are an eye opener as regards the massive oil consumption per day worldwide. In addition, exploration for newer natural gas well drilling opportunities is ongoing.
If you have watched movies and TV shows including ‘Giant’ and ‘Armageddon’, you may already have an impression of how natural gas well drilling works. It’s an elaborate process and very expensive too.
The thick black oil extracted out of natural gas well drilling is the crude form of gasoline jet fuel, kerosene and natural gas. It is also used to manufacture items like tires, crayons, synthetic fibers et al. Hence, many companies are also avid crude oil buyers.
Considering that US is one of the numerous crude oil buyers, the figures are an eye opener as regards the massive oil consumption per day worldwide. In addition, exploration for newer natural gas well drilling opportunities is ongoing.
If you have watched movies and TV shows including ‘Giant’ and ‘Armageddon’, you may already have an impression of how natural gas well drilling works. It’s an elaborate process and very expensive too.
The thick black oil extracted out of natural gas well drilling is the crude form of gasoline jet fuel, kerosene and natural gas. It is also used to manufacture items like tires, crayons, synthetic fibers et al. Hence, many companies are also avid crude oil buyers.
Monday, October 5, 2009
Exploit Your Shale Mineral Rights
Rising prices of oil and gas has made it highly attractive for shale mineral rights owners to commercially exploit their rights. Earlier, a major impediment was the lack of appropriate technology to carry out horizontal drilling in impermeable rocks. This has now been overcome with the introduction of hydraulic fracturing. Barnett shale is a pathbreaker for Woodford and Fayetteville shale. Barnett shale is a formation of sedimentary rocks in the state of Texas. It stretches from Dallas to the city of Fort Worth. Oil mineral rights have always yielded a bonanza for property owners in states like Texas.
Now, with the boom in shale gas and the likelihood that the US has enough shale gas to last a century, landowners are currently enjoying an unprecedented surge of interest in the sale and lease of shale mineral rights. Even basins neglected earlier due to low economic potential are now attracting customers on account of revised estimates. The mineral is estimated to significantly contribute to the economy.
Now, with the boom in shale gas and the likelihood that the US has enough shale gas to last a century, landowners are currently enjoying an unprecedented surge of interest in the sale and lease of shale mineral rights. Even basins neglected earlier due to low economic potential are now attracting customers on account of revised estimates. The mineral is estimated to significantly contribute to the economy.
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