Hassle-free selling of Oil and Gas royalties and mineral rights : Clear Fork Royalty

Clear Fork Royalty specializes in acquiring mineral, royalty and overriding royalty interests throughout the United States. It offers owners generous lump-sum payments, providing customers the freedom to use the proceeds in any way they wish. The company has developed a proprietary royalty acquisition capability, enabling easy evaluation of royalty holdings and close transactions at maximum market.

Founding partners Joseph DeWoody, Michael DeWoody and Ryan Haggerty have continually worked as hard as possible to expedite the sales process to offer a delightful experience to the customers. Clear Fork Royalty has worked with individuals, trusts, estates and corporations to provide evaluation and acquisition of their mineral rights and royalty interests.

Clear Fork Royalty owns mineral rights and oil royalties across the United States. The company specializes in the Permian basin, stack coop merge and the East Texas basin. However, it is interested in acquiring oil and gas rights and mineral rights in every producing basin.

An insight into the world of selling Oil and Gas Mineral Rights and Royalties

It is rightly assumed that having oil and gas mineral rights is a stroke of exceptional luck. If oil or gas is found on a person’s property —or someone inherits mineral rights, —the capital potentially gained can be lucrative. However, owning oil and gas mineral rights are not always as promising as a person might expect. In fact, owing to various reasons, mineral rights can be expensive.

Lack of control is the principle reason mineral rights and royalties can be a financial burden as opposed to generating money. As most people do not have the money required to finance their own drilling —nor their own delivery system —the majority of those who own mineral rights royalties are at the prerogative of oil and gas companies.

To begin with, just because an oil company leases a property does not necessarily mean the company is obligated to drill. If a company decides drilling and transporting the oil or gas beneath the surface of a property it has leased, the company can simply sit on the property and wait until the market value of oil or gas reaches a level that will promise a return on investment. That means the owner of the mineral rights will receive no royalties.

People receiving oil or gas royalties income must pay federal income tax on the royalty revenues they earn each year, a state severance tax on those earnings, as well as a county ad valorem tax. While the amount of each tax varies from state to state and county to county, royalties income is not always what a person might expect. And, even if a property isn’t producing oil or gas, property tax payments to the federal, state and county governments are still required.

Here are the distinct advantages of selling mineral rights

Single Lump Sum

The riskiest component of mineral rights is that there is no guarantee of future royalties. If oil or gas prices drop, the oil or gas company may pull the plug on a well and simply allow it to remain dormant.

Additionally, royalties are a percentage of the total profit made from the oil or gas pumped from a well, generally between 12 and 20 percent. That means, while there is the potential for long-term income, there is no guarantee.

Furthermore, there is no large payout at the end. Selling mineral rights means a single, lump-sum payment.

Lower Taxes

It is possible to sell mineral rights and pay no taxes. The federal government allows for, under the 10-31 Like Kind Exchanges Code, a person to sell their land and mineral rights and pay no taxes if they purchase a like-kind property.

And, even if a person does not buy a like-kind property, that person no longer has the tax burden associated with the property.

While there are dozens of other benefits to selling mineral rights —property management time and costs, not only paying federal, state and county taxes, but also paying large sums to file the taxes and lack of income from well-less properties or non-producing wells are all potential financial burdens — a lump sum of money and lower taxes are the two biggest advantages of selling mineral rights.

Accolades

Clear Fork Royalty received the 2014 Greater Tarrant Business Ethics Award from the Fort Worth Chamber of Commerce. Criteria for the award included clear communication of the company’s ethical standards; transparent, honest and fair business practices; and a code of ethics, credo, and code of conduct or mission statement that clearly spells out the company’s requirement for honesty, integrity and compliance with the law in all business dealings.

All things considered, Clear Fork Royalty provides a quick, no-obligation evaluation of the value of oil and gas mineral rights and royalties. For people looking to sell all or a portion of their interests, the company offers fast and secure closings with the utmost courtesy and professionalism. They understand time is very important and will strive to make the acquisition process as fast and hassle-free as possible.

“We specialize in the acquisition and management of oil and gas rights. We are interested in acquiring oil and gas rights and mineral rights in every producing basin.”