One of the greatest opportunities of residents in areas where shale gas abounds is the chance of earning huge amounts of cash, either instantly by selling their property and/or mineral rights, or over a period of years by leasing their mineral rights to giant oil-producing firms.
Shale gas, which is trapped inside soft, layered sedimentary rocks that have formed from merged mud or clay, is the main source of petroleum and natural gas that is used in American homes and commercial buildings.
The production of shale gas, according to the U.S. Energy Information Administration (EIA), has increased over the past years, allowing ‘Saudi America’ (America’s new moniker) turn into an oil-producing country from being an oil-dependent one.
Aside from the companies engaged in the extraction of oil from productive shale gas areas, the residents are the other group who benefit tremendously from this shale boom, that is, if they are able to decide correctly on what to do with their mineral rights and/or property – lease or sell.
There are companies that are willing and are ready to pay millions of dollars in cash to property and mineral rights owners. Selling means cash up front – whether your property produces something or nothing at all. If your property proves to be really productive, you may regret having sold it or wished that you had sold it at a much higher price. How productive an area of land really is may never be known, though, unless the firm starts digging and actually strikes oil.
However, if your land proves to be unproductive and, therefore, far less the amount that you have been paid, wouldn’t you be glad that you had sold it and made millions of dollars despite a less or non-productive land? This is the very risk taken by any firm when it purchases mineral rights.
Owners, however, should refrain from deciding to sell (their) mineral rights abruptly, lest they end up getting paid a certain amount of cash when they could have gotten a much bigger amount. A website with the address, www.auctionmineralrights.com/how-to-sell-mineral-rights/, shares valuable information regarding selling mineral rights – information that will help you, the land owner, to get the better end of the deal.