Mineral Rights In order to sell oil and gas leases one more do research into laws and regulations governing "mineral rights.
" The United States grants property owners the right to their land and the minerals below it.
This includes the rights to the minerals and natural gases found below the surface.
The restrictions to selling and transferring those minerals are governed by individual state laws.
To sell oil and gas leases means that you are effectively selling the rights to the oil and natural gases found below the surface is a relatively straightforward process that usually involves the property owner and a lessee who offers payment for the oil and/or natural gases.
Selling Oil and Gas Leases According to geology.
com, a website published by licensed geologist Dr.
Hobart King, to sell oil and gas leases depends on the property owner and on the state.
Hobart contests that since the lessee usually does not know the amount or type of oil/natural gas the property holds, they will usually pay a fee to lease the land rather than purchase it.
Once the lease is signed, the lessee performs different tests to determine the type and amount of minerals, as well as whether or not the minerals can be extracted and used.
However, the benefit to the property owner comes in the form of the lease payment and possibly a "signing bonus" for the use of the land.
Additionally, if the land is found to be rich in oil or natural gases that can be extracted and used, then the lessee can decide to extend the lease, rendering payment to the property owner.
On the other hand, if the land is determined to be unusable or not as profitable to the lessee, then the lessee can decide not to renew the lease and let it expire.
Also, if the land is found to be rich in oil or natural gases and the lessee decides to extract a large amount of the minerals, then the property owner is often paid based on the amount extracted.
In other words, the property owner receives a share of the profit from extracting the minerals from their land.
According to the Environmental Protection Agency (EPA), there are approximately 4,000 oil and natural gas platforms operating in U.
S.
waters.
With oil and natural gas combined, they supply 65 percent of U.
S.
energy.
In order to sell oil and gas leases you must make understand the legal ramifications of the process and understand that they are based on the individual property, the amount of minerals found, and the lessee's desire to extract the available minerals.