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.
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