Negotiating Gas and Oil Royalty

7/25/2019 Negotiating Gas and Oil Royalty

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Negotiating Gas and Oil

Royalty

Gas and oil royalty deal is based on an agreement that is made between the gas royalty purchaser and

the property owner. The property that is being purchased for exploring minerals may include natural

gasses or oil. The terms of these royalties are set on individual basis between an individual and property

owner or the company that is interested in buying the land. Gas and oil royalty can be negotiated in many

ways.


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However, one of the most popular ways to distribute royalty is for the landowner to get a share or

portion of the extracted minerals or get paid according to the amount earned on minerals extracted.

However, you must take care of local and state laws and consult with them prior to making any

agreement between you and thegas royalty buyer.This helps to make a good agreement as all the

details have already been discussed and documented, and the deal takes place adhering to the laws.

Do Gas and Oil Royalty Rates Ever Change?

The rates of royalty are based on the present-day market and federal government regulations. The

United States Government Accountability Office, in 2008, conducted a study that helped determine

what the governments reaction is when there is a dramatic change in the royalty rates. The reports

conclusion was that government must intervene in big cases like drilling in Gulf of Mexico for oil and

demand a larger royalty when giving permit to companies for drilling.

The report also specified that consultation with independent firms must become a necessary point

before any plan is implemented to change governments mineral extraction royalties. This does not in

any case change the fact that gas and oil royalty is negotiated and considered on well-detailed basis.

The agreement is taken apart point by point and then each point is considered whether it is agreed

upon by both the parties or not.
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Is a Professional Necessary To Negotiate The Royalty On Your Behalf?

A professionals opinion does matter when you are going in to a big deal as a gas royalty purchaser.

For example, in Texas, a number of companies one and only purpose is to guide companies and

individuals negotiate royalty deals for natural gas and oil. These companies in Texas have helped many

mineral seekers and property owners reach mutual agreements and land a deal where both parties

come out satisfied. These companies have better knowledge about federal and state laws and

regulations, which individuals must follow before collecting their propertys royalty. Therefore, it is

better if you seek the opinion and help of a professional because they have negotiated many deals on

behalf of their clients, and they will definitely lead you in the right direction.

If you are looking for a reliable source that will evaluate your gas and oil royalties then look no further

than UniRoyalties Ltd. UniRoyalties is one of the leading companies in the market that deals in oil and

gas royalties. They will quickly evaluate your land and provide a complete solution working as your

investor.

By involving a company and lawyer to take care of the major details, you are able to focus on the

minor details of the deal. This helps you focus on the contract where you can write terms that are

advantageous to you. Selling or buying gas and oil royalties is not that tricky once, you transfer the

reins to a company that is capable of handling this job. Visit for more info

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Negotiating Gas and Oil Royalty