Issuu on Google+

Gas And Oil Royalty Principles If you happen to be the owner of a piece of land where oil or gas was recently found, it is vital that you understand what oil and gas royalties are and that you get your fair share. Years in the past, owners of such land were required to bargain for overriding royalty, whereas these days the mineral owners strive for no override with a negotiated percentage of the royalty. The owner of the land has right to a portion of production and really should learn as much as they can to understand what their rights are regarding the production on their land. What Is a Royalty? Perhaps you're unsure of what the word “royalty� even means. Understanding the word will help you understand what you are entitled to when all is said and done. The person that owns the land where the oil or gas was discovered gets a royalty, or certain amount of money, from the producer of gas or oil. Additionally, a royalty may make reference to a payment made to the landowner (who has current rights to the minerals) so that the producer would then have the rights over the product. The amount of the royalty is commonly configured around a certain percentage of the gross income that the producer acquires, and doesn't carry with it other fees or costs, except for taxes. Landowners can negotiate with producers for a higher royalty. This can differ with concern to the royalty clause, but generally, the amount is 1/8 of production. Larger gas and oil royalties frequently are the result for landowners who learn as much as they can about negotiation. Royalties for Oil Gas and oil royalties vary slightly in terms of payout. Oil royalties are sometimes paid in actual oil, and the owner is then able to put the oil on the market to make some cash. Landowners who really understand the oil market and know that they can be successful at doing this will experience the most advantages from receiving royalties in oil. Receiving cash payment for the oil found on their property is another option and the one that a lot of owners will select. An owner could receive an oil royalty in oil, sell it back to the producer, and still receive the cash in the end in unusual circumstances. Royalties for Gas Cash is utilized to pay out gas royalties. It can be difficult for landowners and gas producers to negotiate a fair price given that the market fluctuates so much. The royalty will be listed as proceeds in the royalty clause in many situations. Whether you bought land with the knowledge that you would be the beneficiary of gas or oil royalties in the future, or if you were surprised to find that your property was so richly abundant in natural resources, it is important to understand what royalties are. Doing as much research as you can will help you to be able to negotiate the most fair royalty payout available on your land. To ensure that they receive what they deserve, landowners can put a due date on royalty payment; you must be aware of this. Interest rates can be applied if payments are late.

Mineral Trader

Page 1


Gas And Oil Royalty Principles So you can receive what you are entitled to, find out more about gas and oil royalties today. Make contact with the professionals who can give you direction and help you benefit the most from your land when in doubt. If you want to build more income, visit Mineral Trader to discover more about trading oil and gas royalties. Additional specifics on Mineral Trader are available on the organization's web page, http://www.mineraltrader.com/.

Document Tags: oil and gas royalties, oil and gas royalties for sale, investing in oil and gas royalties, selling oil and gas royalties http://www.mineraltrader.com/

Mineral Trader

Page 2


Gas And Oil Royalty Principles