A Guide for Mineral Rights Buyers

There is a lot of paperwork, history, background checks, financial grounds and legal grounds to cover for mineral right leasing, so, one should not take mineral rights leasing lightly. Many issues need to be confronted once you opt for leasing mineral rights to oil and gas companies. The major part of the transaction is to dig into the legal aspects of the negotiations being carried out. This comprises of checking who actually owns the mineral rights, or if you are just the surface owner on the conditions in your mind and the oil and gas company have in mind and many other concerning matters.

To avoid any future ambiguity on the legal matters of the transaction being carried out it is always recommended that you consult a lawyer for dealing with the legal aspects of the transaction. Matters that involve mineral rights buyers and sellers possess factors such as property rights, commissions, and royalties to consider. All of this can be confusing to someone who is a novice in the field of mineral right leasing.

A legal consultant can help you to understand the terms of the transaction being carried out and offer a legal advice. One should not promptly agree to a proposed agreement without legal consultation and exploration of available options. If you are not the surface owner, you are the mineral owner; you should be worrying about the rights of the surface owner. The rights of the surface owner is protected and provided by the state laws.

The mineral rights lease agreement also holds a few rights for the protection of the surface owner. This is maybe to protect the buildings, the crops, or the livestock of the owner etc. So, the legal consultation is necessary to accommodate the company and the surface owner, both.

The most important thing in a mineral rights leasing agreement is the contract that should be agreed upon by all the parties and their actions must comply with the agreed upon agreement. Legal consultation is recommended to the buyers and the sellers both when studying options and drafting the contract.

The contract should be drafted in a manner that all the participants benefit from the agreement equally. For a favorable outcome, you with your lawyer should come up with a contract that benefits all the parties and considering all the factors competent negotiations should be drafted to satisfy the other members. Knowledge, research, and negotiating skills are going to help you in rights leasing transaction. Always keep your ownership rights in check, and never jump into any agreement without legal consultation no matter how clear the contract may seem to you. It is possible to have arguments and disputes in future among the parties but as long as the contract is clear on your terms and agreements, they would be settled peacefully.
For more information visit our website:
http://www.uniroyalties.com/

Procurement and Sale of Mineral Rights for Amateurs

The surface of the earth has many natural reserves which many people are now entitled to. Fossil fuels such as cooper, gold, coal, silver, rocks and stones, oil and gas and even non-metallic resources can be sold to individuals like us. Mineral rights have now become a market in which an entrepreneur can venture for the sake of profit maximization goals. After the purchase of these mineral rights you can even sell them to companies, which are willing to convert these resources into currency. This is a modern form of investment and might prove to be risky for people you do not understand it. However, a person which clear cut vision and a crystal understanding as to how this market works may be at advantage as this market provides great opportunities.

For those amateurs who want to venture into this business line despite the cons, there are two simple steps to it. They are:

Procurement of Mineral Rights:

When a company buys mineral rights, a very typical sort of settlement is involved. The landowner still has the possession of the land but the subsequent profit derived through the production and harvest of its resources goes to the company. As you can guess that this settlement would prove be more beneficial for the latter, as they would be most involved in the process of resource generation and its sale. Also, the fact that they do not wholly purchase the property, all the while gaining the benefits from that property plays an important role. It is stated in the legal rights that they acquire possession of the minerals produced while not of the actual land.

 Sale of Mineral Rights

Most royalty owners tend to sell their rights for the sole purpose of liquidating their assets. They usually choose to sell them to big mining companies to sell their mineral rights royalties to. The most obvious fear for the sale is that the owners feel the need to avoid possible foreclosure and taxation mishaps. However, there are also mineral royalty owners which sell their rights to steer clear of the future cost problems. These cost problems usually arise when they are transferring the tenure come about. This makes to the owner paying huge amounts in royalty interest, which the owner might think to be unreasonable.

For more information visit our website:
http://www.uniroyalties.com/selling_royalties.php

Mineral Rights Royalties – How to Sell Them When You Need Money

People are often confused about selling their mineral rights royalties, which includes oil and gas minerals; however, the process is rather simple than how you have made up your mind.  If you presently receiving a royalty check regularly, and then you suddenly choose to sell your mineral royalties, you can easily expect to receive an attractive offer for 20-75 months’ worth of checks.

Is the question, “If I do not receive a check, can I still sell my mineral rights royalties?” circulating your mind currently? The answer is ‘absolutely’. However, it all depends on the location of the minerals and any sort of projected drilling of the land, and you can expect to receive around thousands of dollars for per acre of land. Many petroleum management companies  will also offer a free evaluation, which will allow you to receive multiple offers and handpick the best one based on your perception and decision making abilities.

When you sell the mineral rights royalties, keep in mind that you are not selling your ownership of land, but only the minerals below. Moreover, you can even sell a portion of the minerals you have underneath your land. For example, you can simply sell 75% of the minerals you own and maintain a 25% interest in any future drillings (if you are lucky and oil is found.)

Remember! Your minerals will decrease in value as time passes.

Things can go in two directions if you choose to stay immobile for the time and hold on to the minerals, and both directions can be a cause of concern for the mineral owners. It is possible that your property will be drilled and you will start receiving royalty checks, eventually the checks will cease to arrive at your door, or most likely, they will decrease in value on a month-by-month basis.

Secondly, let us assume that you have received an offer to sell your land for $500,000, and you think that if they are offering $500,000, the value might be more. This is a mistake. After you have refused the oil management firms, you find out that they have bought your neighbor’s land, started drilling and have concluded that they have highly estimated the amount of minerals in that area. All this process will render your property practically worthless.

Firms that purchase gas and oil royalties and mineral rights are involved in a high-risk game. They may earn back their investments in a few years, after 20 years or this might never happen. These petroleum management firms are ultimately betting on increased mineral production, which is infrequent.

Lastly, one more thing that you need to consider when selling mineral rights royalties is the possible problems with maintenance. You will be worrying about varied income, paying property taxes, and dealing with various firms on an on-going basis.

Uni Royalties Limited is one of the leading petroleum companies that helps sell your mineral rights royalties across the United States. They carry out speedy evaluations for oil and gas leases to make sure that you get top bucks for your mineral interests. For more information and a range of petroleum investment solutions, visit www.uniroyalties.com. Moreover, you can call us on our toll free number, 1 888 916 0220.

Leasing Your Mineral Rights and the Resulting Oil and Gas Royalties

The Clear Difference between Mineral Rights and Royalties

Oil and gas royalties are not that difficult to understand as many people think. In fact, the explanation and the calculations are justly simple. Reading further, you will get a clear understanding of whateach of the terms mean and how do they generate cash.

You being the owner of a farm mean that you own a land, which are also known as surface rights. If you had gone over the papers when buying the farm, you might know that because the deed must have clearly stated the mineral rights beneath the surface along with the farm’s surface rights. Owner of mineral rights means you have legal permission to extract, explore and sell minerals beneath the surface like gas, uranium, coal, oil, helium or others that rest under the surface.

Much of the landowners do not have the geological knowledge to realize the presence of potential minerals beneath their land. Most landowners even forget that they own the mineral rights of their land. Moreover, many do not have millions of dollars lying around to explore for minerals or even the necessary networking skills to elevate a fund with millions of dollars for that matter.

Energy and petroleum asset management companies have the knowledge as well as the funds so as soon as they identify a region rich in minerals, they negotiate to lease the mineral rights for exploring, from the landowners. The lease then gives the oil and gas firms the permission required to explore for minerals and petroleum products, to produce and even sell if they are successful in finding petroleum in abundant quantities.

The Bonus Payments & the Royalties

The owner receives two kinds of compensation against the leasing of his mineral rights. One is called the “The Bonus Payment” which is a signing amount paid on the basis of per acre and typically the amount is calculated ranging from $200 to $500 per acre. The bonus is paid once, at the signing of lease documents and might be the only sum of money the owner receives from the deal.

The other is known as royalty, which is calculated as a percentage of the money generated through the sale of gas and oil from the mineral owner’s property. Traditionally, the percentage was 12.5% but has climbed up to 18 - 25% recently. The percentage however, depends on how well the negotiation was and what would the extraction of gas and oil cost the company.

If the company finds no traces of petroleum or not in saleable quantities then the prospect is abandoned, the lease expired and the mineral rights are reverted to the owner again. In this case, only the bonus payment was the earnings from the negotiations. However, if the hydrocarbons are found, then the oil and gas royalties are earned. If production were 100 barrels a day with $80 per barrel then the royalty received would be $1,200 per day.

Royalties Decline over Time

Royalties earned often last decades however, as wells deplete, owners experience a decrease in royalties. An average well lasts to about 35 years. The royalties die at the end and their might be future leasing possibilities.

Finding Buyers of Mineral Rights Is Hard

It is indeed hard to find a reliable buyer of mineral rights but with the reputed Uni Royalties Limited in the industry, all your tensions will fade away. We promise the best payoffs for oil and gas royalties. Visit http://www.uniroyalties.com

Contact Us
UNI Royalties, Ltd. 
P.O. Box 1959
Parker CO 80134
Phone:(720) 663-1187


Toll Free Phone: 1-888-916-0220
Toll Free Fax: 1-888-491-8525
Local Phone: 1-720-663-1187
Local Fax: 1-720-746-2899
E-mail: sellroyalties[at]gmail.com