Clear Fork Royalty

Advantages of Selling Oil and Gas Royalties​

 

Every owner of natural gas or oil rights has different reasons for selling oil and gas royalties. More often than not, landowners have found selling off a portion of their mineral estate and royalties is a great way to generate cash for their needs. Clear Fork Royalty is a company that buys mineral rights and oil royalties, and we have worked with thousands of mineral owners across the US that have decided to sell mineral rights for their immediate cash needs.

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Clear Fork Royalty has worked with royalty owners selling oil and gas royalties for every reason from paying for medical bills to education expenses. We have had sellers that wanted to use the value of their oil and gas lease to help pay for the purchase of a new car or home, invest, or simply leave their monthly royalty checks and paperwork behind.

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Whatever your reasons for selling may be, we continually strive to always be honest and work as hard as possible to expedite the process of selling oil and gas royalties to save our customers time and make the sale as hassle-free as possible.

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We are not a mineral exchange or a mineral rights broker. This means Clear Fork Royalty buys mineral rights and oil royalties directly from owners looking to sell mineral rights from all across the United States.

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Here are some of the most common reasons for selling oil and gas royalties and mineral rights

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• Immediate cash

• Fewer paperwork hassles

• Accounting simplification

• Clear up estate issues

• Future estate planning

• Liquidity for another investment opportunity

• Pay for unexpected expenses

• Commodity price fluctuations

• Eliminate future risks

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Whatever the reason, Clear Fork Royalty can help meet your needs with a fast and fair offer if you are considering selling oil and gas royalties.

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What Are Your Reasons for Your Selling Oil and Gas Royalties?

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Most people do not have the money required to finance their own drilling - nor do they have the funds or connections for a delivery system. This means the majority of people who own mineral rights royalties are at the mercy of oil and gas companies - which is not always a good position to be in.

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First, just because an oil company leases property from you does not always mean they are obligated to drill on that property, getting you little to no profit. Second, even if a company decides to drill and transport the oil or gas from your property, they could still sit on that land, gas or oil and wait until the market value of oil or gas fluctuates to their advantage.

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That means the owner of the mineral rights (you) will receive no royalties, and though that isn't fair, it's business. Clear Fork Royalty has helped many individuals selling oil and gas royalties in similar situations, and we pride ourselves on helping you, not the oil and gas companies drilling on your land.

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In many cases, selling mineral rights can have large advantages over keeping full ownership, which comes along with full responsibilities and paperwork.

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Tax Advantages in Selling Oil and Gas Royalties

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If you are receiving oil or gas royalties you have to pay federal income tax on your royalty revenues each year, as well as a state severance tax, and a county ad valorem tax - that's a lot of taxes on top of your regular city, state, and federal taxes!

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While the amount of each tax can vary from state to state and county to county, royalty income is not always what you expect, which means your taxes could be very different than you expect.

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Did you know that even if a property isn't producing oil or gas, property tax payments to the federal, state and county governments are still required?

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Your lack of control along with the taxes you are obligated to pay could make selling oil and gas royalties the better choice.

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Get a Lump Sum Instead of Monthly Royalty Payments​

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The riskiest part of owning mineral rights is that there is no guarantee for your future royalty payments. If oil or gas prices drop, then the oil or gas company drilling on your land may pull the plug on a well and simply allow it to remain dormant - getting you little to no profit each month. And if you are relying on that money, it might be smart to sell.

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On top of that, your royalties are a percentage of the total profit made from the oil or gas pumped from a particular well, usually right around 12.5-25%. That means, while there is the possibility of long-term income, there is never a guarantee. The variability of this income can be a hurdle for many oil and gas royalty owners.

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Selling mineral rights means a single, lump-sum payment, which is often advantageous for owners.

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Selling Your Oil and Gas Royalties Could Mean Low to No Taxes

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Did you know it is possible to sell mineral rights and pay no taxes? Under the 10-31 Like-Kind Exchanges Code, the federal government allows you to sell your land and mineral rights and pay no taxes if you purchase a like-kind property with some or all of the money. Want to know more about taxes, laws, and local ordinances? Clear Fork Royalty knows it all!

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Even if you don't buy a like-kind property, you no longer have the tax burden associated with your previous property and royalties.

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While there are dozens of other benefits to selling mineral rights, a lump sum of money and lower (or no) taxes are the two biggest advantages of selling oil and gas royalties or rights.

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To begin the process of selling your oil and gas royalties, fill out the form below and click the “Request Fast Offer” button for a free, no-obligation review of your mineral rights and oil royalties. Or learn more about us, our areas of interest, contact us, or check frequently asked questions here!

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