subject: Do You Have Minerals And Reserves In Your Land? [print this page] Oil and gas royalties as well as mineral rights may seem to be a complicated deal to embark on but with an incessant demand for oil and gas, maybe it's time to give this profitable niche a shot. But before you put your feet onto this venture, it pays to know further information concerning the field.
What is royalty interest?
Royalty interests are also known as rights converted to cash by a particular Oil or Gas Company that buys mineral rights in your estate. A royalty percentage is shared by both the owner of the land and the company leasing its rights. You as the owner will enjoy the privilege of profiting from your own land, while the royalty company benefits from the oil, gas, or other possible minerals they may find in your land.
How to sell mineral rights?
If you think you got reserves underneath your property and you believe you can turn these mineral resources into hard cash, then start selling mineral rights while holding on to your property. It pays to consider a geologic survey done by the Department of Natural Resources and determine which type of mineral/s is evident in your land. Prior to getting your hands on the leasing contract, weigh projected royalty payments. If actual mineral's is found in your subsurface, the royalty rate must be at an elevated cost. If the situation goes the other way around, it is wise to get upfront money just to be on the safe financial side.
Perk up your investment portfolio with investing in the earth. Consider this as your own way of giving back to mother nature. Research and homework is required, and, as with any investment, it does require risk, however, the time spent now learning of the opportunity may yield high returns later.
