Why Sell Your Interests?
There are numerous reasons to sell your interests. Often times, owners, who received their mineral or royalty interests in an estate, wish to sell their interests and receive cash rather than hold on to their interests. Some other reasons to sell are:
Estate Planning – Liquidating the assets of an estate avoids the costly process of passing on minerals to heirs. The value of your minerals may decrease from generation to generation as they get smaller due to land work and other fees associated with the small interest. Transferring ownership, in some cases, may exceed the value of the interest itself.
Taxes – Some owners do not want to have extra costs or out-of-pocket expenses for tax preparation and administration. There is an interest tax for small interests and keeping track can become a burden.
Risk & Expertise – There is a significant amount of risk involved in owning small mineral interests as they are subject to the fluctuation of the commodities market. We have extensive experience negotiating these assets and can afford to pay in the short, thus offering you more for your minerals than you may ever obtain in the future. The benefit is a 100% cash return upon closing and title ownership verification.
Frequently Asked Questions
What is the difference between a Mineral Interest (MI), Royalty Interest (RI), an Overriding Royalty Interest (ORRI), and a Working Interest (WI)?
The information below will outline the main differences and similarities between the four.
Generates Revenue from Well Production (MI, RI, ORRI, WI)
Owns the Underground Minerals (MI, RI)
Ownership Continues After Production Stops (MI, RI)
Collects Upfront Bonus Payments (MI)
Has Rights to Exclusive Leases (MI, RI)
Pays to Operate or Drill the Wells (WI)
Participates in the Lease Operating Expenses (WI)
Has Significant Tax Advantages (WI)
How is the value of my interest determined?
The value is determined by engineer calculations. Our objective is helping you understand future risks and uncertainties while offering you a fair price per acre.
Why do my royalty checks vary?
This is a result of variations in oil and gas volume production and oil and gas prices.
Why don’t I receive a royalty check anymore?
There are four possible reasons for this.
1.A different company may be responsible for disbursing you royalties and is setting up your interest payment.
2.The amounts you receive may not have accrued the minimal amount set forth by the Royalty payer. You will receive a payment in the future once it has accrued the company’s minimum disbursement amount.
3.Your interest may be in suspense for legal reasons such as a change in address, where the appropriate paperwork was not filed with the company responsible for paying your royalties.
4.The well may not be producing oil or gas anymore.
To determine why you are no longer receiving a royalty check, call the number listed on the last check that you received. You may also contact Rose Royalty for additional assistance as well.
How do I transfer my interests to my heirs?
Contact an attorney that specializes in wills, trusts, probate, and deeds to have a conveyance document generated. We can refer you to an experienced attorney upon request.
How can I calculate my royalty interest?
Divide the total amount of mineral acres within the unit you own by the total acres in the unit, and multiply this by your royalty interested listed on your oil and gas lease.
What are future predictions on oil and gas prices?
Due to disagreements among experts on oil inventories and prices, there can never be a clear prediction on where prices will go. We feel that looking at current trends, rather than forecasts and future prices, is a better approach.
If you have any other questions, feel free to contact us and one of our associates will assist you.
Copyright 2011 – Rose Royalty, LLC – An entity of The Prospective Investment and Trading Company – All Rights Reserved
