As anyone working in the oil and gas industry will tell you, both federal and state governments are constantly updating regulations and implementing new laws aimed at them. Some states are looking to tax oil and gas companies further in an effort to promote renewable energy, while other states are relaxing regulations and making gas and oil exploration easier in an effort to keep those industries thriving. Even small changes in the regulatory code can have big impacts on how companies in these industries operate, and since those changes are frequent, it’s sometimes hard for companies to keep up. Of course, not following federal or state regulations is a big no-no, and it can result in sizable fines. It’s best to keep up to date with everything that’s going on to ensure that your business is operating within the given regulatory framework of the area you’re working in.
One specific area where the laws and regulations are constantly evolving is the mineral rights industry. Mineral rights are a key component of how oil and gas companies operate. In order to extract oil and gas from the ground, they have to obtain the rights to do so. Many companies own huge swaths of land where they hold the mineral rights, so as long as they’re extracting the oil and gas in the proper way, there aren’t any issues. However, oil and gas companies are also constantly looking to purchase mineral rights from landowners who hold them. They’ll approach a property owner, talk with them about their mineral rights, and then make an offer to purchase them. Sometimes that results in a lease of the land under the minerals are extracted, and in other cases the resulting documents that are drawn up give the oil company free rein over the land until they’re done.
One of the big problems that oil and gas companies run into is that not only are local and federal laws regarding mineral rights constantly changing, but the laws are also different in different states. In some states mineral rights are easy to transfer from a landowner to an oil company, and in other states the process is more difficult. This is why it’s a good idea for oil companies looking to acquire mineral rights to work with a third-party company that’s an expert in this field. This outside company will understand the laws much better than the oil company will, and thus will be able to draw up a document and contract that not only follows all local and federal laws but that also is beneficial to the oil company. It’s imperative that oil companies work with businesses like this when they’re acquiring mineral rights to ensure that the process goes as smoothly as possible and benefits them the most.
MAJR Resources is one such company that many oil companies work with when they’re securing mineral rights. They have an expert understanding of this field, and they work tirelessly on the behalf of their clients to ensure that every mineral rights contract is drawn up in the most beneficial way possible.