Oil And Gas Royalty Interests: What Else to Know?

As you start to explore how to sell oil and gas royalties, you’ll see that there are countless royalty companies. However, among so many options, how to choose the right one or understand whether you’re getting a fair deal?

How to Estimate Oil and Gas Royalty Value?

There are many factors influencing value. You can get a rough estimate using your monthly royalty income.

Here’s how:

• Add up your last 3 royalty checks

• Divide by 3 and get the monthly average

• Multiply that average by 4 to 6 years

What is the Difference Between an Oil Royalty and an Oil Royalty Interest?

In oil and gas leases, two of the most commonly used terms are oil royalties and 

oil royalty interests. Royalties mean the landowner’s share of an oil or gas production. Royalty interests are earned by those associated with the actual production of oil or gas. Contractors, financers, or other companies involved in 

the exploration, extraction, or sale of the resources are generally associated with Royalty interests. A fixed percentage of an operation, or as a one-time fixed 

payment for the party’s contribution, Oil royalty interests may come as a royalty interest.

When are Oil and Gas Royalties Paid?

While many landowners wish to receive oil and gas royalty payments the moment a resource is discovered, this isn't the case. Regardless of how valuable the resources beneath your property are, you have to wait before your first royalty check arrives.

Once a resource extraction operation is in process, royalty payments are typically due 90 days after each month of resource sales. Though this three-month delay may be a challenge, many companies start oil and gas royalty payments within 60 days of extraction and sale.

To enjoy fair offers and receive fast payments, reach out to Mineral-Rights.com. They work with different types of royalty owners. They help you get access to quick lump-sum cash for better financial stability.