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.
Wednesday, September 30, 2009
Important Points To Pay Heed Before Selling Mineral Rights In Texas
If you are in Texas, before you attempt to sell mineral rights, confirm that you own the mineral rights to begin with. In some cases the surface rights have been severed from the mineral rights. This severance could be by a mineral deed or by reservation deed. Check your deed or go to your courthouse to ascertain your right of ownership. Mineral rights in Texas sometimes go back to the 17th century. A right buyer will approach you only when they have satisfied themselves of your mineral rights. Accept offers only when only the same is offered in writing.
Negotiations for the lease of mineral rights in Texas involve bonus amount, oil and gas royalties - besides the use of water and indemnity against damages. The initial term and renewal are also negotiated. There is a marked difference between leasing and selling of your mineral rights. You must exercise caution and consult an attorney prior to signing the document.
Negotiations for the lease of mineral rights in Texas involve bonus amount, oil and gas royalties - besides the use of water and indemnity against damages. The initial term and renewal are also negotiated. There is a marked difference between leasing and selling of your mineral rights. You must exercise caution and consult an attorney prior to signing the document.
Sunday, September 13, 2009
Selling Mineral Rights? Here’s what you need to know
Different states in the US have introduced laws regarding mineral rights. Laws in Texas go back to 1869 when it was still under two flags, those of Spain and Mexico. The mineral rights could be severed from the surface rights and either transferred or sold separately. Laws in New York date back to Nov 1865 when oil was struck in Cattaraugus County.
Generally, mineral rights have to be clearly owned irrespective of the surface property. The owner of mineral rights can sell, lease or transfer these rights to another individual or company. Mineral rights agreements have to be drawn up accordingly to register the transaction. Such an agreement could be for a lease between the owner, the lessor and the producer, the lessee. The lease has a definite first term of operation and quantifies the bonus amount and the royalty to be paid to the lessor.
Generally, mineral rights have to be clearly owned irrespective of the surface property. The owner of mineral rights can sell, lease or transfer these rights to another individual or company. Mineral rights agreements have to be drawn up accordingly to register the transaction. Such an agreement could be for a lease between the owner, the lessor and the producer, the lessee. The lease has a definite first term of operation and quantifies the bonus amount and the royalty to be paid to the lessor.
Sunday, September 6, 2009
Understanding US Mineral Rights
Minerals - defined as fossil fuels, metals and their ores - include non-metals and even gravel or peat. In the USA, the right of ownership of the minerals beneath the surface of our property rests with the owner. Therefore, an agency interested in buying mineral rights can do so without buying the surface property. Further, the owner can sell or lease the oil and gas rights alone and the other minerals separately. Thirdly, the sale or lease of US mineral rights could be up to a certain depth only. Mineral rights can be confirmed by studying the deed to the property.
The agency interested in buying mineral rights should therefore refer to the deed. Mineral rights could also be leased for a period decided upon by the owner, the lessor and the producer, the lessee.
The agency interested in buying mineral rights should therefore refer to the deed. Mineral rights could also be leased for a period decided upon by the owner, the lessor and the producer, the lessee.
Wednesday, August 26, 2009
Oil and Gas Leasing – a brief
Oil and gas leases are legal documents between the owner of the mineral rights, known as the lessor and the producer, known as the lessee. Once the lessor and the lessee sign the lease it becomes a legal document and thereafter the oil and gas mineral rights are transferred to the lessee for the period of the lease. Oil and gas leases must lay down the bonus amount agreed upon, the period of lease and the amount of royalty to be paid by the lessee to the lessor once the production commences.
Here the period of lease is critical in that production must commence before the lease period runs out. Should that happen the mineral rights are returned to the lessor. It is in the interest of both the parties to ensure that production commences.
Here the period of lease is critical in that production must commence before the lease period runs out. Should that happen the mineral rights are returned to the lessor. It is in the interest of both the parties to ensure that production commences.
Monday, August 10, 2009
Selling Oil and Gas Royalties – Some Essentials to Pay Heed
Leasing mineral rights will entitle you to gas royalties besides signing bonus. However, first of all, it’s worthwhile hiring the services of a geologist who would assess the potential of your property. You would then be in a better position for negotiations later on. The next thing to do is to acquire the consultancy of a good lawyer conversant in local oil and gas laws.
He will be your adviser during the drawing up of the lease agreement and till the finalization of all legal processes dealing with the sale of the mineral rights and your acquisition of oil and gas royalties. The term of lease and the quantum of the royalty are both negotiable though some states have fixed the value of the minimum oil and gas royalties.
He will be your adviser during the drawing up of the lease agreement and till the finalization of all legal processes dealing with the sale of the mineral rights and your acquisition of oil and gas royalties. The term of lease and the quantum of the royalty are both negotiable though some states have fixed the value of the minimum oil and gas royalties.
Wednesday, July 29, 2009
Oil and Gas an Investment - Always in Demand
You can’t go wrong with oil. Yes, it’s true that oil and gas investments are always in demand. You only have to count the top performing global companies to realize this. But how do you invest in oil? There are several ways to make sound oil investments. One way is to invest in a large public owned oil company. Another option is to invest in mutual funds dealing in the oil sector. A third option is to invest in oil as a commodity. And another option is to invest in a private project.
The public companies will give you a steady 10% annual return whereas a private project might give you as high as 50% return. If you can take risks, an even higher yield is possible by participating directly in independent companies prospecting for oil. Oil and gas investments have brought in profit for many, its time you make a try.
The public companies will give you a steady 10% annual return whereas a private project might give you as high as 50% return. If you can take risks, an even higher yield is possible by participating directly in independent companies prospecting for oil. Oil and gas investments have brought in profit for many, its time you make a try.
Thursday, July 23, 2009
Essentials of Buying Mineral Rights
Buying mineral rights is simpler than buying property - provided you have no interest beyond just acquiring mineral rights to the property. However, in any case it’s a good idea to get a geological survey done to assess the best property for exploitation.
Confirm the right of ownership of both the property and the mineral rights. Consulting an attorney proficient in oil and gas laws would be helpful. Thereafter you have to draw up a lease, which will give you the mineral rights. A payment is involved and there is a term of lease by which time production should have commenced. Both of these should be negotiated in your favor.
The property owner would have to be paid oil gas royalties generally defined by the state. The royalty should be negotiated in your favor. The property owner will also ask for indemnity towards protection of his property.
Confirm the right of ownership of both the property and the mineral rights. Consulting an attorney proficient in oil and gas laws would be helpful. Thereafter you have to draw up a lease, which will give you the mineral rights. A payment is involved and there is a term of lease by which time production should have commenced. Both of these should be negotiated in your favor.
The property owner would have to be paid oil gas royalties generally defined by the state. The royalty should be negotiated in your favor. The property owner will also ask for indemnity towards protection of his property.
Wednesday, July 15, 2009
Oil And Gas Royalty Buy – A Brief About The Essentials
Buying mineral rights from the property owner with the intention of benefiting from future raise in oil, gas or mineral price is a well-established practice. The steps that should be taken care of before making a call on oil and gas royalty buying opportunity are:
* Check out the property generally to ascertain fitness for commercial exploitation.
* Check the property ownership status.
* Involve an attorney conversant with oil and gas laws of your state.
* At the negotiation stage, hard bargaining is must since you at best can make only an assessment regarding the commercial viability of the property.
* A lease has to be drawn up which gives you the right to conduct exploitation of the property. Since the duration of the lease is for a fixed period, you have to complete your assessment and start production before the lease lapses.
* You have to pay the property owner a share from your income known as royalty. These oil gas royalties are often fixed by the state.
* Check out the property generally to ascertain fitness for commercial exploitation.
* Check the property ownership status.
* Involve an attorney conversant with oil and gas laws of your state.
* At the negotiation stage, hard bargaining is must since you at best can make only an assessment regarding the commercial viability of the property.
* A lease has to be drawn up which gives you the right to conduct exploitation of the property. Since the duration of the lease is for a fixed period, you have to complete your assessment and start production before the lease lapses.
* You have to pay the property owner a share from your income known as royalty. These oil gas royalties are often fixed by the state.
Monday, June 29, 2009
Royalty Purchaser: A Trustworthy Oil rights Purchaser
Got oil and gas royalties or mineral rights that you want to convert into cash effectively and quickly? A reliable and reputed purchaser is who you need then. And surely you can’t afford to overlook the aspect of recovering a fair value for your possessions, can you? Moreover, if the firm is willing to do all the hard work for you in exchange for the bare minimum information then you might as well have hit the goldmine.
And goldmine is the right word to describe Royalty Purchaser, which has earned its reputation of being a specialist and reliable name in cash purchase of oil and gas royalties and mineral rights from estates or individuals. With a dominating presence in many regions of North America, Royalty Purchaser has been offering hassle-free and rewarding services for quite sometime now.
And goldmine is the right word to describe Royalty Purchaser, which has earned its reputation of being a specialist and reliable name in cash purchase of oil and gas royalties and mineral rights from estates or individuals. With a dominating presence in many regions of North America, Royalty Purchaser has been offering hassle-free and rewarding services for quite sometime now.
Tuesday, June 23, 2009
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