Can We Negotiate When Selling Oil & Gas Royalties?

Can We Negotiate When Selling Oil & Gas Royalties?

Selling mineral rights are based on an agreement between the landowner and the other party who may be intentto purchase the property to explore minerals and other crude products.

These minerals can be lucrative commodities like copper, asphalt, diamond or oil and natural gases. The royalties are analyzed on individual basis between the individual /owner who is interested to buy royalties and the landowner.

Oil & gas royalties are negotiated in a number of ways. One popular and widely practiced way is to distribute royalties by paying the original landowner a share or portion of the minerals that are extracted from the land. The amount can also be paid based on the earnings from the extracted minerals. However, before coming to any agreement or signing any contract, you should be aware of the local and/or state laws and must make the contract in accordance with the laws so when purchasing of land for mineral extractions is in process, both you and the investor are protected.

Do the rates of gas and oil royalties vary?

There is always a change in the royalty rates that is based on the global market as well as the regulations imposed by the federal government. A study conducted by the United States Govt.

Accountability Office in 2008 was used to determine the government’s response to variations in http://www.uniroyalties.com/

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royalty rates as theatrically as in recent years. The report concluded that intervention of the government should exist in the large cases such as drilling in the Gulf of Mexico for oil and receiving larger sum in royalties for permitting companies to drill in those regions. The report also stated that consultations would be mandatory with independent firms before a plan is implemented for a change in the amount paid to government as royalties for mineral extractions. However, the fact cannot be overlooked that oil and gas royalties are determined and discussed on a case-by-case basis.

Who is authorized to negotiate the buying and selling of oil &gas royalties?

Before even royalties from oil, gas and other minerals are determined, a professional consultant should be hired. Several companies in Texas have the sole purpose of providing help and advice to oil and gas firms and individuals to negotiate royalties on natural gas and oil and setting a worthy rate. These companies in Texas have helped several royalty purchasers and property owners reach agreements that are mutual on the terms regarding the land in question. These companies are always advising on buying and selling mineral rights therefore they are updated on the federal and state laws that landowners must followbefore they collect royalties for mineral or oil & natural gas extraction. Again, it is always in the right frame of mind to seek a professional’s opinion prior to negotiating your gas and oil royalties, in fact it is recommended.

Uni Royalties Limited is a reliable source for oil and gas lease evaluations, matching you with potential royalty purchasers or perhaps buying your mineral rights ourselves. We guarantee you the best deals after fast evaluations and processing. We also provide a free consultation so if you have a land that is just sitting there then come to us and we might turn it into an incomegenerating asset. For more information, visit our website www.uniroyalties.com or give us a call at our toll free number, 1 (888) 916 0220.

http://www.uniroyalties.com/

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