We in the US enjoy a property right, which is not the case in most of the other countries. This is the right of ownership of the minerals in our property. It is therefore in your interest to find out the possible mineral content in your property and thereafter lease out the mineral rights for oil lease royalties.
At the beginning, it is worth the while to consult a geologist in your area to assess your property regarding the likelihood of oil and gas in it. The geologist has the necessary data regarding the rock and subsoil quality of the area surrounding your property. He would probably conduct a survey as well. An intelligent estimate is therefore quite possible. The next step before you can acquire oil lease royalties it's prudent to consult an attorney qualified in oil and gas laws of your state. He will help you in drawing up a lease agreement, which is between two parties. You, the owner, are the lessor and will grant or lease the mineral rights. The producer is the lessee who will procure the mineral rights from you for the duration of the lease. Oil and gas leases therefore, are legal documents between the lessor and the lessee.
The lease agreement has a couple of important aspects that you will need to consider. Your attorney will guide you through the agreement. Firstly, the agreement will be valid for a time period agreed to by the two of you. It's in the interest of both that production should commence within this period otherwise the mineral rights are reverted to you. Secondly, you are entitled to the lease bonus as well as the oil lease royalties. The latter is a percentage of the production value. In certain states, this percentage is fixed as a minimum value. However, the lessor can bargain and obtain a much higher percentage from the lessee. It all depends on the hard bargaining and the likely commercial value of the mineral content in your property. Generally, the royalties make the bonus value inconsequential.
About the Author:
Royaltypurchaser.com specializes in purchasing of oil and gas royalties, oil lease royalties and mineral rights from estates and individuals. Also, buys oil and gas royalties in return of cash from parties in Texas, Oklahoma, Louisiana, West Virginia, New Mexico, Michigan, California, Illinois, Montana, Canada and many other North American locations.
