Frequently Asked Questions
- Looking for answers? We are here to help.
+ Why does Royalty Clearinghouse buy mineral rights and royalty interests?
Royalty Clearinghouse invests in oil and gas mineral and royalty interests across the United States. We take a portfolio approach to investing, meaning that we spread our risk across many oil and gas investments. Because we own a significant number of interests, we can effectively reduce our overall risk as compared to an individual mineral owner.
+ Why should I sell my mineral rights or royalty interests to Royalty Clearinghouse?
Quite simply, there are few key reasons:
- We will explain and share with you how we determined the value of your minerals or royalties so you can make an informed decision
- We will provide a simple and prompt payment process
- We will honor and respect the choice that you make
+ Who will pay the taxes on my minerals?
We will prorate the amount owed for current taxes through the effective date of the sale. If there are delinquent taxes owed on your mineral rights or royalty interests, Royalty Clearinghouse will deduct the amount owed from our closing price. We will then mail the payment to the taxing entity.
+ My interests are in a trust, what additional documentation is needed to sell my mineral rights or royalty interests?
A copy of the Trust Agreement or Memorandum of Trust in addition to a conveyance document from the current owner of record into the Trust. These documents must be recorded in the county and state where the minerals reside.
+ Why do you need to see my checks stubs (production back up)?
This is a standard request for any company that wishes to purchase your minerals, royalties or non-operated working interests. If you received a Royalty Clearinghouse offer in the mail, we need to review payment history for the wells involved in order to verify our original bid. The information from the stubs helps us to:
- Confirm your ownership interest in the well(s);
- Verify that the well(s) is still in production;
- Confirm your payments received from the operator.
If you do not have copies of your recent check stubs or are not paid monthly, please call one of our account managers to discuss your sale options. 512-458-4545
+ Am I obligated to sell if I receive an offer?
No, all offers presented by Royalty Clearinghouse are "no-obligation" offers. Receiving an offer does not obligate you to sell.
+ How long until I get paid?
Funding will generally occur within ten (10) to fifteen (15) business days of our receipt of your original signed deed or assignment. We can arrange for a company check to be sent directly to you. A cashier’s check can also be sent from our bank to your bank and will be directly deposited into your account. We make every effort to close your sale as quickly, efficiently and easily as possible. Naturally, the time to fund may vary due to the size or complexity of the transaction.
+ How does Royalty Clearinghouse evaluate my mineral rights or royalty interests that I own?
The value is based on the cash flow that we expect the minerals to generate in the future. Estimating cash flow involves assumptions about the location of your interests; when wells may be drilled; production history; current and projected oil and gas prices, the operator including the track record in the specified oil and gas field; and the overall risk to Royalty Clearinghouse.
+ How did you get my information?
Our original bids are generated from public information. We combine ownership information from county tax rolls, where available, with production data reported to the Railroad Commission or each State’s Oil and Gas Commission to make our cursory bid. Although the taxing entities and the Railroad Commission are great sources for our initial evaluation, the information is not always accurate or up-to-date, which is why we ask to see recent check stubs.
+ Oil And Gas Terminology
- Chain of Title
- A chain of title is the chronological order of successive legal owners of a property - such as mineral interest or the ownership of a home. It often lists the registration particulars of the document by which title is transferred from each owner to his successor in title.
- A legal document (similar to a deed) that conveys ownership of real property from one party to another.
- A deed is the document that transfers ownership of real property (such as a mineral interest or ownership in a home). It contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property. You can't transfer real estate without having something in writing, which is almost always a deed or an assignment.
- Royalty Check
- Royalty checks normally come monthly, and are determined by the division of interest (i.e. your ownership in a well(s)), the production for the month, oil and gas prices, and operator deductions. It may take several months once a well goes into production for royalty checks to start. Before the oil company will commence payments, it has to establish an owner's division of interest for the owner.
- A blanchard interest is a unit that has multiple operators. The primary operator pays the royalties and each of the other operators pays an excess royalty to the royalty owner.
What does Royalty Clearinghouse Purchase?
+ My interests are in an estate. Is Royalty Clearinghouse still interested?
Yes. We are happy to work with you to find solutions to more complex title issues such as mineral rights in estates. Please give us a call so that we may discuss your specific situation with you.
+ I am not currently receiving payments for these properties. Is Royalty Clearinghouse still interested?
Yes. If you are not currently receiving royalty payments but you received an offer letter from us, you will need to contact the operator of the wells for more information. You will need to explain that the County tax records indicate you are an owner in a well that the Railroad Commission or state shows is producing but you are not receiving payments. Please call one of our account managers to discuss your situation.
+ Does Royalty Clearinghouse buy non-producing minerals or royalties?
While we mostly purchase producing mineral rights and royalties, we will evaluate and purchase non-producing properties in selected areas.
+ Does Royalty Clearinghouse buy working interests?
We do evaluate and purchase non-operated working interests. We are not an operator and do not purchase operated interests in wells.
+ What areas are you interested in buying mineral rights?
We currently buy interests all over the country.
What are the Costs?
+ Does Royalty Clearinghouse charge a fee to evaluate my mineral rights or royalty interests, if I don’t end up selling?
There is no charge to you if we assign a value to your mineral rights or royalty interests, even if you choose not to sell at this moment.
+ Are there any costs to me to complete a sale if I choose to sell my mineral rights or royalty interests?
Our legal and title team will research and assemble all necessary documents at no cost to you.