Getting involved in the ownership of minerals under the ground is the domain of coal and oil royalty interest programs or deals. These kind of deals involve getting a area of the proceeds from extraction of natural resources like oil and gas. There are some limitations concerning such investment opportunities a big the chance of big payouts.

oil royalty

Some of the advantages of owning an gas and oil interest run the gamut plus general are less riskier than an actual well. Having a well introduces numerous problems including messy liability issues as well as major expenditures for production.



Owning interests in gas and oil will remain in perpetuity. Which means even though working interest of the particular well may change hands many times, the interest with the royalty holder will remain intact throughout these changes.



Holding gas or oil royalty interests has the additional benefit of no liability issues. Liability issues could be between your working interest as well as the government or involving the subcontractors as well as the operators from the well itself. There are environmental liabilities that need considering, property damage, injury, as well as common liability issues with debtors and even a company going under. Liens held against the operations of the well also occurs which places individuals with working interest at a disadvantage should there be injuries or even a lawsuit is brought again the company producing the resource.



An additional benefit is that there aren't any extra expenses related to owning an coal and oil interest. The working interest rates are the sole responsible party in all of the operational costs for that well. This could include metering, plugging, pumping, up to abandonment.



Luck as in most investments in your life can also play many. Though not actively involved in the production, sometimes more wells will probably be drilled for a passing fancy lease meaning pet owners with the oil or gas interest may benefit from the extra sales following production from the new wells. All again without the operational cost.



Unlike in property and other types of investment, no capital calls are permitted. Those holding interest in gas or oil will never have to concern yourself with requests for payment because those interest holders are divorced in the actual operation from the well for example drilling.

oil royalty

Another nice feature is utilizing an gas or oil interest to diversify a portfolio. Some investment programs involve working interest deals which can be heavy around the risk and liability but feature huge payouts. Gauging the commodities market is definitely not for everyone and putting one's trust in to the hands of the operator who may turn in the market to be described as a detriment is very risky. Creating a oil and gas royalty interest is a safer method of getting involved with energy production without having to concern yourself with the unnecessary costs. Finally, monthly income is a big bonus in the form of checks from operators as royalty holders are paid first.