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1) Have your property surveyed for mineral content. Look under Natural Resources in the U.S. Government Offices section of your phone book for a geologic survey.
2) Separate the various types of minerals evident on your property. Instead of leasing the rights to all minerals to one company, specify which minerals they can claim. Have an experienced attorney help you. Also determine the length of the lease–two years, three years, five years.
3) Ask the local Environmental Protection Agency office about the need for an environmental impact report before proceeding with the lease of the property. A damaging report might force cancellation of the lease.
4) Ask about a signing bonus. Weigh the size of the bonus against proposed royalty payments. Getting money up front is an advantage if no minerals are found; a higher royalty rate is best when minerals are actually located.
5) Become acquainted with other ways to handle mineral rights. For example, you can sell the property but retain the mineral rights for yourself.
Russell T. Rudy is a third generation oil and gas mineral, royalty and overriding royalty interest buyer. We are not brokers and never buy oil and gas interests for the purpose of repackaging and resale, but rather accumulate interests for our own account. In all of the years that Russell T. Rudy, his father Ellis Rudy and his grandfather Manuel Rudy have been purchasing oil and gas interests, they have developed a well-earned reputation for honesty, fair-dealing and a very high standard of ethical communication. Throughout the sales process, Russell T. Rudy Energy, L.L.C., will keep you informed and up-to-date on all aspects of our transaction. The fact that we often purchase additional oil and gas interest from the same person, in many cases several years later as they inherit additional interest, is due to the easy, honest and efficient manner in which their previous transaction was conducted!
In many cases after one transaction is completed, we will purchase additional oil and gas interests from the same person. This is particularly true when they inherit additional interests months or years later. People often say that they come back to us because of the honest and efficient manner in which their previous transaction was conducted.
If you have an interest in only a few properties and you can provide sufficient supporting documentation such as check stubs, Division Orders and/or Pay Statements from the oil/gas Paying Company, we can generally have an offer to you within three (3) days. This is certainly true when you are additionally able to supply a copy of the Mineral Deed, Assignment, Trust Deed, Divorce Decree or other instrument evidencing your title to the properties.
Once you provide us with the necessary documentation discussed above, we will be able to prepare the conveyance instruments and transfer documents. After you execute (sign) the conveyance instruments in front of a witness and have your signature(s) notarized, we will ask you to execute a transfer letter which will only need to be witnessed. At that point we are required to obtain your Social Security Number/Taxpayer Identification Number for the IRS.– We’ll do the rest of the clerical work, which includes: recording of the conveyance instruments, notification of the County Tax Assessor, filing the documents in the appropriate County Records and notifying the paying oil companies!
Once we receive the conveyance instrument(s) and transfer document(s) – and each is properly signed, witnessed and notarized – we will forward payment either by mail, overnight delivery or wire transfer the next business day.
After you receive payment for our acquisition of your oil and gas interest, we will record the conveyance instruments in the appropriate County Records – upon our receipt of the recorded documents from the County Clerk(s), we will provide a copy to you – this will be your record of our transaction and that your oil and gas interest(s) has been sold to Russell T. Rudy Energy, L.L.C.
Yes, we are required to report the ale amount of our transaction to the Internal Revenue Service and submit a 1099 to you. We are also required to withhold thirty (30%) percent of the sale amount if you do not provide us with your Social Security Number/Taxpayer Identification Number.
Depending upon the amount of taxes levied on your interest and the date your transaction is effective (property taxes are paid on a calendar year basis in nearly all oil/gas producing states), the tax is prorated between you and Russell T. Rudy Energy, L.L.C. However this issue is negotiable and we often include the payment of “your share” of the property taxes in our offer.