Lease oil & gas royalties in Texas

Unless a Texas landowner wants to develop his property himself, he can lease his Texas land to another person for the development of minerals, such as oil and natural gas. In return for these development rights, anyone operating under a lease and recovering oil and gas customarily pays the landowner a royalty, an amount agreed as share of the minerals being developed.

Minerals and royalties are worth more to our investors than they are to most individuals and institutions. This is primarily because our investors are able to significantly reduce the uncertainty of royalty income.
This is generally due to two reasons.

• First, they spread the risk by owning interests in thousands of wells and the possibility of that one well going down is offset by the thousands of other wells they own.
• Next, the risk of declining oil and gas prices by trading futures contracts on the New York Mercantile Exchange is curtailed. Consequently, our investors lock in on the current oil and gas prices by ensuring that the shortfalls in royalty income that would result from declining oil and gas prices would be made up in gains on their futures investments.

The bottom line is that our investors to limit the risks of holding minerals and royalties in ways that most of us can’t.  Lowering the risk means a higher value and in effect, a higher lump sum payout can be made to you.   
There are two main ways that you as a Texas landowner can benefit from having oil or gas reserves below your property.

• By a payout of a cash bonus. This is usually paid at the time of the initial agreement of the oil or gas lease.
• Next, by means of a royalty. A royalty arrangement of this kind generally gives lessor approximately one-eighth of the oil or gas removed from the property.

Oil and gas in the state of Texas are considered minerals. Out of the 254 counties in the Texas, nearly 2/3rd are known to produce oil or gas. However, a Texas land owner may not be very clear as to who owns the rights to the minerals found in the earth below his land. County records will state as to who has the ownership on the mineral rights.

As per the Texas law, the mineral estate is a separate interest that can be severed from the surface estate.

• The Texas landowner sells the gas mineral oil rights and retains the surface rights of the land for himself.
• The Texas landowner sells the rights to the surface of the land and retains the gas mineral and oil right for himself.

If the seller fails to reserve the rights to the minerals when selling the surface of the land, the buyer automatically receives any mineral interest that the grantor owned at the time of sale.

Oil and gas reserves are limited and finite, and every oil and gas well will some day be exhausted, plugged and abandoned. So, even though your royalty income may increase in the short term due to rises in oil and gas prices or production enhancement projects, the royalty checks they derive will decline over the long term and eventually stop coming.

Why American Land & Minerals for Lease oil & gas royalties in Texas:
We at American Land & Minerals specialize in the acquisition of mineral rights, royalty and overriding royalty interests in Texas and throughout the United States. We can offer generous lump-sum payouts that will enable you to use the proceeds in whatever manner you like and simultaneously free you of the hassles related to uncertain and fast declining royalty checks.