Royalty Taxes for Out of State Minerals

Do I have to pay state income taxes on producing minerals in the state where the minerals are located? I hear this question quite often and the answer to the question is yes! At least that is yes provided that the state that the production is located in has a state income tax. States
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Can my Oil Lease be sold to Another Company?

Can the oil company that has my lease sell it to another without my permission? Yes, your oil lease can be sold to another company, unless you have language in the lease which specifically limits their ability to do so. Typically, this language only requires that they provide you noti
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Should you allow Seismic Testing?

You should not allow seismic testing if you are not under lease to the company the seismic company is contracted to. If you have signed an oil & gas lease and there is language in the lease providing them access to your land to shoot seismic, while that is common boiler plate lang
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API Gravity: The Basics

API gravity is a measure of how heavy or dense oil is relative to water. Gravity is expressed in degrees and if greater than 10 will float on water, if less than 10 it will sink. Certain densities of oil are easier and more profitable to extract. Oil with a gravity of 40 to 45 degrees
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Why you should use an Attorney for Oil & Gas Transactions

I am a firm believer that you should hire an Attorney to help with you oil & gas transactions that specializes in oil & gas law specifically in the state that your mineral holdings are located. This is true particularly if your holdings constitute a significant portion of your
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What is a Pugh Clause and should I have one in my Lease?

A Pugh clause is sometimes referred to as a continuous drilling clause. The language can vary greatly but in effect it causes the lessee to continually develop the lands covered by the oil & gas lease until all lands are either included in a producing proration unit, or are releas
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What is the Tax Rate on Oil Royalties?

If you’ve been wondering about the tax rates on oil royalties, your answer may not be as clear cut as you thought. After federal taxes based in income and capital gains, there are state and county laws that greatly differ. Generally speaking, you can calculate your tax rate base
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Are Oil & Gas Companies Required to Pay for Damages to my Lands?

The short answer is yes they are. While the surface estate is subservient to the mineral estate, that does not mean that oil & gas companies can access your surface and do as they please without paying for the damages they cause.This should be inclusive of roads, pipelines, drilli
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How to Sell Mineral Rights Quickly

If you need money quickly but have exhausted all readily available cash sources, you may need to sell your mineral right quickly. Since you’re receiving a monthly royalty check from producing minerals, you think there may be a better way to get a lump sum. Ultimately, you are wonderin
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Mineral Rights vs. Surface Rights

Knowing the difference between mineral rights and surface rights can save you from getting cheated on a lease agreement or mineral negotiation. Find out the differences so you can be prepared for whatever the future holds. Surface Rights: Surface rights include the right to use the su
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