This may seem to be quite complicated if you are not familiar with the norms. However, it is quite simple and you will soon know how to generate cash from your oil and gas royalties for sale.
If you buy a farm then you are not buying only the farm, but the entire mineral rights as well. You can do what you want to do on the surface since you have the surface rights. Similarly you also own the mineral rights and you can drill and extract on the farm and sell any uranium, gas, helium, coal, oil or any other mineral that you find beneath that surface of land that you acquire.
In most cases these types of oil and gas assets go unnoticed because most land owners are not aware that they have the mineral rights over the land they own. Or even if they are aware they don’t have millions of dollars to explore and find hydrocarbons or the skills to develop a multi-million exploration fund and also they lack the social networking. This is why most of the oil and gas exploration sites are limited to only a few owners.
If you buy a farm then you are not buying only the farm, but the entire mineral rights as well. You can do what you want to do on the surface since you have the surface rights. Similarly you also own the mineral rights and you can drill and extract on the farm and sell any uranium, gas, helium, coal, oil or any other mineral that you find beneath that surface of land that you acquire.
In most cases these types of oil and gas assets go unnoticed because most land owners are not aware that they have the mineral rights over the land they own. Or even if they are aware they don’t have millions of dollars to explore and find hydrocarbons or the skills to develop a multi-million exploration fund and also they lack the social networking. This is why most of the oil and gas exploration sites are limited to only a few owners.
Leasing to energy companies
When energy companies with a lot of money to invest find that certain landowners have lands that contain hydrocarbons, they will start negotiations with them and ask for mineral rights. This type of mineral rights lease allows the energy companies to explore that area for petroleum which they can sell in economic quantities if they do find.
In return for this lease the energy companies will pay a certain amount of royalty or bonus to the land owner. This royalty is calculated on the number of acres of land they have leased. This royalty is paid when the lease documents are signed and the land owner will not receive any money after this.
Another lease type is that the land owner gets a percentage of the amount generated by selling the gas and oil got from his land. This percentage varies from 12 to 25% depending on the nature of the lease. If the energy company strikes luck with oil wells, then the land owner gets very lucky with healthy royalties which can start from $500 to $1200 a day.
However, if the energy company is not lucky to strike any gas or oil in that particular area, the lease gets automatically reverted and the land goes back to the owner. The bonus received for the lease will be the only money the owner receives.
This is the main reason why oil trading has become a big and prosperous business.
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