Given the current state of the economy, millions of Americans are looking for ways to earn extra money. Selling oil and gas leases are one option that could help individuals earn more income. Selling mineral leases involves selling the rights to a piece of land to a lessee who is interesting in mining the land. This action allows the lessee to explore the land for the known or unknown minerals available. Payment between the land owner and lessee is negotiated in the contract agreement.
Selling oil and gas leases also requires an understanding of the state and federal regulations before contracts are finalized and payment rendered. Each state has different mandates and laws concerning mining and buying or selling mineral rights. Property owners are encouraged to seek professional help before signing contract agreements with interested mining parties. Companies mediate negotiations between property owners and potential land buyers. An excellent company is always prepared to educate their clients on the state and federal regulations and negotiate a fair price between both parties involved.
According to Dr. Hobart King, a licensed geologist, since the lessee usually does not know the amount or type of minerals available, they will usually pay a fee to lease the land rather than purchase it. This type of lease can involve a “signing bonus” which helps property owners earn extra money by selling oil and gas leases. Furthermore, if the land is found to be rich in minerals, then the lessee can extend the rights to the contract and further pay the landholder for the use and extraction of the minerals. Additionally, if the land is found to be rich in oil and minerals, land owners can negotiate to be paid based on the amount of extracted. This type of contract allows property owners to receive a share of the profits earned from the extraction of their land’s minerals.
Selling oil and gas leases is a clear-cut process that could help land owners earn extra money by selling the rights to their land to interested parties.