When looking to manage your oil and gas mineral rights, you have to keep a few things in mind. Whether you are an individual who is trying to manage his assets or you are a full-fledged business enterprise that is trying to get guidance and seek information, you need the help of a mineral management service to increase the value of your assets. Furthermore, here are three tips that you need to follow to understand and manage your rights, royalty payments, and mineral production needs.
Maintain Your Rights and Royalties
Your main concern should be around two things; maintaining your rights and royalties. The first thing you should do to secure your assets is to get Oil, Gas, and Mineral Lease contracts so that you can sell and lease your mineral rights. After you have done that, you should maintain your royalties, which can be done in the form of upfront payment or suspension payments.
Secure Your Contract
After you have gotten the contract for your mineral rights, you need to secure it for the future. You can do it by checking your deed, checking going rates, checking damage compensation, and developing a drilling problem checklist. Carefully managing all of these things will ensure that you are not doing anything that is against the contract you have signed for your mineral rights.
Secure Your Taxes and Payment Obligations
Last but not least, you must follow up on your taxes and payment obligations. You should expect a severance tax deducted from your royalties. However, you should make certain that you are being deducted according to your tax bracket. The next thing you should go over is to know the tax deductions from the country you are operating from. All counties calculate payment obligation based upon the Fair Market Value of your property.