Intangible drilling cost is one of those large tax breakouts afforded by oil companies which lets them subtract the cost of drilling wells in the US. Generally, businesses in the oil and gas....
Named after Lawrence Pugh, a Crowley Louisiana attorney who developed the clause in 1947, the Pugh clause may turn out to be a tripwire for unaware investors in an oil and gas lease....
Oil and natural gas projects generate substantial tax benefits. Oil represents one of the exceptional tax-advantaged investments for big investors. It promises to stand alone above other commodities. As the United States government....
Top leasing oil and gas is a term that refers to a scenario in which an oil and gas lease is implemented on land with an existing lease. The term refers to a scenario when....
Oftentimes, oil gas and mineral leases (OGML) - which exist between the production company that holds the lease of the minerals (the lessee) and the mineral rights owners that leases the minerals (lessor)....
Since 1926, the Oil and Gas Depletion Deduction for small producers has been a part of the United States Federal tax code. Depletion represents a form of depreciation for mineral resources. It enables....
Since the mid-1950s, oil and gas have become the most important sources for the global energy industry. Generally, the oil and gas industry consists of three major segments: upstream, midstream, and downstream. So....
It is no stretch to affirm that the oil and gas business is a lucrative one. However, before dabbling into this industry, you need to acquaint yourself with how it works, including some....
Mineral Interest vs Royalty Interest - What Do You Need to Know? The importance of understanding the difference between mineral interest and royalty interest cannot be ignored. After all, the type of mineral....
A Non-Executive Mineral Interest (NEMI) is a type of mineral interest held by an individual or entity. But it does not give them the right to drill for and produce oil or gas.....
Oil and gas investments are a lucrative business. However, there is a need to understand several terms, including Net Revenue Interest (NRI). Often, the costs of getting access to a tract of land....
Many mineral resources can be found beneath the earth's surface. As a result, if you happen to stumble on oil, natural gas, copper, or zinc, among others - on your surface land, don't....
When it comes to oil and gas in the United States, Texas is the most significant state. The lone-star state produces more oil and gas than any other state in the country and has been....
Like many other markets, the mineral rights market is a time-sensitive one. As a result, actions taken must be swift and decisive. People who wish to sell their rights must be aware of....
You just purchased a piece of land, and minerals have been found beneath the surface. Congratulations! However, such a scenario needs research to determine if you can control these underground resources. Subsurface rights....
It is hard to dispute that this is one of the greatest American dreams: finding oil on your property. After all, proven oil reserves can earn you lots of money. However, it would....
Landowners may hold surface rights and/or mineral rights. However, it is not uncommon for a landowner to possess the rights to everything on the surface but not the rights to any fluid minerals....
After mineral rights are leased, oil and gas production can start. And royalty owners will begin to receive oil and gas royalty statements every month. However, your first royalty statement may be confusing,....
A mineral right is an exclusive right to exploit, mine, and sell minerals found on a particular piece of land. The mineral rights owner is said to have a net mineral interest in the land.....
Being a mineral rights owner requires you to acquaint yourself with how to calculate your net mineral acres and your net royalty acres. With these estimations, you can figure out the value of....
