Thanks to the historic boom in oil and gas exploration & production, the future of landowners are very bright in the US. The fact that owning land upon an oil or gas reserve is of such value; many companies are paying top dollar just to get drilling rights and maximize the income that they get from their mineral assets.
In times like these, hiring a Oil and Gas Management company isn’t an option but a necessity. However, to make sure that you don’t entangle yourself into something fraudulent, here are some important tips that you should keep in mind.
Familiar with Local Rules and Regulations
While owning mineral rights sound all good on paper, when you get down to owning such assets, you have to stay in line with complicated rules and regulations. If you don’t follow these rules to the dot, you will find yourself in lots of trouble. To make sure that you are not overstepping your reach, you should hire a mineral management company that is well-versed in local county laws so that you stay ahead of the curve.
Unmatchable Negotiation Skills
A key part of managing your mineral resource is that you have to think on the spot when negotiating lease agreements. A lease agreement is the document war you get into with the person owning the land, and if you want to make sure that you can safely drill the mineral, you have to negotiate in the right way.
Everything in the lease clause will affect the royalties and hence the profits being earned from your mineral rights. You should let an experienced mineral manager handle all of these things for you as you will have a vast skill set and contacts to ensure that you earn the best possible terms for the contract.