How oil operators deal with mineral owners

Posted on Thursday, June 9th, 2016 at 9:01 pm    

In order to sustain the oil and gas supply needs of consumers, oil companies secure a legal contract under an “Oil, Gas, and Mineral Lease,” which allows them to tap into the rich mineral resources beneath the land of a mineral rights owner.

Under such a contract, oil companies or operators pay mineral owners for allowing them to tap into their mineral resources and mineral owners who strike a deal with oil companies automatically receive a lease bonus. Mineral rights owners under certain contracts are entitled to get an additional payment from oil companies in the form of a royalty percentage upon conducting any mineral-related activities, such as drilling. Oil companies initially make a proposal to notify the landowner and pay them before conducting any drilling activities, which may last from several days to several months.

If you are a mineral rights owner and you are planning to lease or sell your estate in the Austin area, The Mineral Auction professional team may be able to help you sell your mineral rights. Call our office at (512) 698-2802 to discover how we could help you find potential buyers.

Recent Mineral Rights Posts

Aug
31
Ownership of Mineral Rights: How do I know who owns the rights? How do I go about selling them?

If you are a property owner in an area that has precious resources like oil, gas, or minerals, you m... Read More

Jan
09
Who might buy your mineral rights

Selling mineral rights is much more different than selling most items or property. It goes further t... Read More

Jan
05
Cautions before selling mineral rights

The world of mineral rights is highly marketable, which is one of the reasons companies work hard ... Read More

Ready to get started? Call us today - (512) 698-2802