Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-07-27
ROYALTY CHECKS ARE LARGER

atty becomes the owner of oil in under
ground storage. If he buys % royalty
on a section of land, he OWNS one bar
rel out of every hundred under that
land. When any oil is produced from
that land-no matter by whom-the roy
atty owner receives his one barrel out OF
every 100 produced, FREE OF COST OF
PRODUCTION.
If the land contains 1000 barrels to
the acre, or $4,000 barrels in all, the
owner of % royalty owns 6,400 barrels.
If it contains 10, 200 barrels to the acre.
or 100000 barrels, the owner of 1 %
royalty owns $4,000 barrels.
Here in Montana oil fields have yield
ed from 1000 to $4,000 barrels per acre
from the SHALLOW sands. Not bar
rel of oil has yet been produced from
the formations, known to be present,
which are yielding the flood of oil in Tur-
ner Valley: not a barrel of oil has been
produced, commercially, from the Devon
ian, likewise present, which formation
upset the oil market of the world In the
illinois development; not a barrel of oil
has been produced from the lower hori-
IONS, below the Devonian, which give
such great oil fields as Oklahoma City
and others which would not be produc-
ing ANY oil IL drilling stopped at the
present Montana horizons
The man who buys landowners roy
altv in Montana gets PERPETUAL title.
While he may own thousands OF dollars
worth of oil in underground storage, ne
pays NO TAXES on that oil, neither does
he nav taxes on his investment, since the
law provides a special method OF TAXA
ton for minerals and that tax Is assessed
when the minerals are taken from the
ground.
In these times of uncertainty, there IS
only one CERTAIN safe investment as
we see it. One way is to buy land, In
Guiding minerals, on a known OIL struc-
ture at a price that is not greater tnan
the potential agricultural value OF the
land. The minerals may make the owner
rich, Just as mortgage investors nave mad
wealth come from lands so worthless
that they had to foreclose on them we
read this week of some investors who
were hooked by a muskrat farm pro-
motion. Fortunately the promoter sold
them some worthless" lands. The lands
were leased to drillers seeking sulphur
and oil The muskrat business lost
money but the ownership of Louisiana
swamp land means from four to six mil
lion dollars from their oil royalties. The
chances are good that most of the people
farm had charged off their investments
and properly so. But the ownership OF
land In a country that may produce oil
is always a sound investment.
To the person who cannot afford
to buy an entire farm, there is the
possibility of joining with others IN
the purchase merely of the land
owners share of the oil on not only
one bat q dozen or perhaps score
of different farms, I'm different fields
BY spreading his investment, he
takes advantage of the law of aver
ages. He is more certain of wine
ming than is the man who buys Just
ONE farm outright.
Investment in royalties is not COM
plicated matter. Royalties require no
great amount of attention other than
common sense conduct Of business, SO DO
not require that a man give up his regu-
lar business to attend to his investments.
Any who is interested in familiarizing
himself with royalties and their opera
ton is invited to join this organization
and receive our current publications, to-
gether with offering sheets describing
available investments.