Individual landowners & trusts with oil & gas royalties often have questions about the value and potential of their assets. A solid understanding of the same can help them avoid costly mistakes & make informed decisions.

This post will provide a clear overview of oil & gas royalty rights, whether you’re considering selling your royalties or want to learn more about it:

Understand What is Oil & Gas Royalties

Oil & gas royalties are compensation provided to mineral rights owners in exchange for permitting oil & gas development on their property. Mineral owners who have leased their properties to exploration companies are eligible to receive such royalties.

Different Kinds of Mineral Interests

The three most common kinds of oil and gas royalty rights are:

Royalty interests
Overriding royalty interests
Working interests

How To Monetize Your Oil & Gas Royalty Rights

The most common method is to receive direct royalty payments from the oil & gas company.

Lease your royalty interest to a company that can develop the land & extract the minerals.

In some cases, where multiple landowners have small royalty interests in the same area, they may pool their rights together to create a larger interest.

Conclusion:
Oil & gas royalties play an essential role in the passive income of mineral owners. But who should you trust to maximize the value of your oil & gas assets? A trusted company like Mineral-Rights.com can be the one you can rely on. They stay up-to-date with market trends & regulatory changes to provide you with the best possible solutions.