Montana oil journal. (Great Falls, Mont.) 192?-1931, 1931-02-21

we're made to find oil on Dry Creek.
The attempts were abandoned and
leases forfeited. The abandonmants
cost the landowners nothing. when
production came. the owners Of
these oil rights had the value Of
their oil rights enhanced IN q hun-
dred fold, over night"
These oil rights, for lack Of some
other convenient name, are called
royalties"
In ancient times the royal FAM
ilies-the kings and their heirs
granted 70 some Of their subjects
concessions 70 work mlnea and were
paid q share Of their weaith-mak-
ing production. That practice con-
tinues in some cases until today.
The Prince OF Wales has royalties
on the coal mines OF Wales. which
have been the heritage Of the Eng
lish Grown Prince or the Prince OF
Wales for generations. From the
fact that royalties, almost In the
sense Of the present day royalties
on oil and gas we're originally only
for the royal family, the term
royalty" as applied 20 oil and
mineral properties today has come
down 20 as.
So royalty means that part
which the landowner holds out for
himself when he leases bis land for
oil, gas or the production OF other
minerals. The lease which the land
owner gives carries with II rs Of
oil and gas rights. One-aighth Is
retained by the landowner aa his
royalty This means that he IL 70
receive, without any deduction what
soever, a full one-eighth OF the gross
proceeds Of sale Of the oil, gas or
other mineral production that may
ever be obtained under bis land
which he has leased.
The operating company pays al
costs OF drilling and operation Of the
lease under the royalty. The roy
atty owners receive their pipe line
checks direct from the pipe line
company for their parts OF the roy
atty. The royalty does not expire.
IL is perpetual II is q mineral
deed recorded at the county seat
Of the county where the land on
which the royalty ID owned is locat-
ed. There are no rentals or other
costs connected with a royalty.
Few people know about royalties.
II everyone knew about royalties.
the opportunities for royalty invest
ment would not be as great as they
are today. There are less than
ONE THOUSAND owners o. pro-
dueing royalties In tbs state OF MON
tana Five years ago there we're
probably not more than FIVE HUN
DRIED owners Of producing royalties
in Montana--perhapB fever.
Yet there has been distributed
among these 1000 or fewer owners
Of royalty total sam OF EIGHT
tuai Investment ia these royalties
Is a mere traction OF that sum.
The oil development Of Montana
has been barely started. The test
ing OF deep sands has progressed 20
/ point 81 proof NORTH Of Non
tana and SOUTH Of Montana. In
Identical geological formations pres
snt IN Montana. bat there has been
lower formations These lower for
ihan have the shallow sands, from
which these millions Of dollars worth
81 oil have been taken.
The man who seeks Investment IN
his time Of greatest opportunity
IAN find no greater opportunities
.han offered by the OIL INDUSTRY.
There IL no branch Of the OH in
austry where there Is greater op-
Dortunity 90 make great indiyldual
fortunes than In LANDOWNERS
ROY ALTTES.
The man who has 3 thorough
knowledge OF the subject Of ROY
ALTTEs can make himself Torture
through relatively small investments