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  • The Need To Educate Oil and Gas Royalty Owners in Texas!

    August 23, 2016

    Oil and Gas Royalties in Texas

    Texas land is rich with natural resources. It is not uncommon for landowners and mineral rights owners to be contacted by companies looking to lease those mineral rights to extract oil and gas from them. Although selling oil and gas royalties may seem like a simple idea, it can become quite involved before rights owners actually gain any revenue. To have the right expectations and make the best decisions, owners of any oil and gas royalty for sale must understand the production process and its many details. Texas royalty owners have some new educational opportunities available to help them do just that.

    Why Royalty Owners Must Stay Educated

    Many property owners in Texas know that there is no lack of companies interested in leasing their mineral rights to produce oil and gas. Unfortunately, some of these organizations operate solely with their own profit in min and have little regard for the property or mineral rights owner who may be uneducated about the sale of oil and gas royalties. The lack of knowledge that owners could be viewed as a benefit to companies looking to generate as much revenue as possible and keep as much of the royalties from oil and gas production as possible. Mineral rights owners should avoid these circumstances by educating themselves about their oil and gas royalty for sale.

    Protecting Royalty Owner Rights Requires Knowledge

    Royalty owners finding themselves face-to-face with energy companies making offers on their mineral rights might initially seem pleased with such offers. In reality, owners need to understand the terminology and how these business transactions work before agreeing to anything. The concern that advocates for landowners and mineral owners find is that owners can very easily end up with a bad deal simply because they were uninformed their rights regarding their own royalties.

    On the other hand, energy companies are very well educated in the laws, clauses, and the overall business of royalties as well as oil and gas production, putting owners at a distinct disadvantage. Honest representatives will take steps to educate owners, effort that makes for better neighbors and keep everyone out of court; however, not all companies make this effort. Some just rest on the old adage of “let the buyer" - or in this case the seller - "beware.”

    Taking Advantage of Educational Resources

    The best suggestion that oil and gas consultants, energy companies, and well-known royalties companies have for landowners and mineral rights owners is to make use of the existing resources and become educated about oil and gas royalties. Texas miner rights owners have numerous educational resources available that can be searched online or gathered from reputable royalties companies.

    More recently, numerous educational courses have been designed specifically for landowners and mineral rights owners. One such course, offered by the Texas Christian University Energy Institute, provides owners with 3 days of education about the ownership and sale of mineral rights, oil and gas royalties, and how to protect rights while negotiating the best lease deal.

    Industry consultants stress that landowners and mineral owners must understand the business and laws in order to negotiate the best deal regarding the sale of their oil and gas royalty. As these experts point out, everything in oil and gas royalties is negotiable. Unless owners know these things and the different negotiation points, they could end up losing out. Texas landowners and owners of mineral rights are strongly urged to research before leasing their mineral rights and learn how to get the most for their oil and gas royalties!

    Want To Know More About Mineral Rights In Texas?

    Permico Royalties Can Help Sell Your Mineral Rights!

    Call (432) 242-7335!

    Additional Articles:

    Oil and Gas Lease Contract Options - Primary vs. Secondary!

    Oil and Gas Lease Negotiations - Considering Valuation Variables!

    What is the History of the Oil and Gas Lease?

    What Are The Different Types of Mineral Title Opinions?

    Selling Your Mineral Rights – What Is The Role Of A Landman?

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