BELTWAYBAILBONDS Menu HOME SAMPLE PAGE KNOWING YOUR NUMBERS IN TRADING THE MINERAL RIGHTS LEASE Posted on November 18, 2021 by admin If you decide to lease you mineral rights to oil or gas companies for a share of production profits, you might want to brush up on the subject in grade school you absolutely paper writer services detest-mathematics. The typical process is for the oil and gas company to offer you the lease contract according to their calculation of your property’s potential yield and maybe the amount of money they will infuse, which will be factored into the production cost. The company’s capital outlay shouldn’t factor in your share. The biggest mistake for you during the initial discussions is presuming goodwill on the part of the company to be upfront with you and give you the best deal. It’s a reality that this industry is teeming with conmen with sweet mouths and even faster hands to confuse you with a seemingly attractive proposal to part with your mineral rights lease but end up as fool’s gold instead. One common modus for these crafty companies is to write in fine print that you both share the logistics cost. The only way to prevent them from finagling you of your deserved royalty percentage share from your mineral rights is to hire outside help, preferably a lawyer or accountant to look over the documents before putting your name on ink. How do you calculate your royalty? There are three major ways to consider when computing your share. First is the actual income. Your percentage share is taken from the actual income generated from your mineral rights, and not on the current pricing in the world market. Its strength is stability, meaning when the market price is lower than your royalty, you end up a genius. The reverse, however, is equally true. When your income is lower than current pricing trends, what does that make you? Which brings us to current price trends, a very volatile term because it’s anchored on the dominant market price of oil and gas or other minerals like gold, silver, etc.The usual practice of companies is to determine buying price by comparing them with the average commodity sale of oil fields at a radius of 100 miles from your property. The third type is in kind. As can be gleaned from the name, the company gives the landowner a share of the gas, oil and mineral produced from his property instead of cash. The formula is computed out of the prevailing price, so this is another sub-type of the current price trends. The landowner can then choose to sell the products to another buyer at a much higher price. Filed Under: Uncategorized Post navigation ← Casino Games – A Review of Club Dice Casino How To Write A Book Proposal – Step By Step → Leave a Reply Your email address will not be published. Required fields are marked * Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Search SEARCH Recent Posts Star Wars Toys for the Happening Atmosphere at Home How Travel Guides Can Be Beneficial How to Choose the Best Grill For Barbecue Cooking Buy Galaxy A21s Online Why Is Pest Control Important for Ecology and Health? Recent Comments A WordPress Commenter on Hello world! Archives December 2021 November 2021 October 2021 Categories Uncategorized Proudly powered by WordPress | Theme: Aplos by Andy Noelker.