What type of interests does Tradition Royalties purchase?
Tradition Royalties buys producing and non-producing mineral, royalty and overriding royalty interests located throughout the Continental United States. Our acquisitions range in price from a few hundred dollars to several million dollars. Mineral and/or royalty interests may be in one central area or scattered anywhere in the United States. Should you wish to determine whether Tradition Royalties is interested in your property, please feel free to contact us for a cost-free evaluation.
Do my mineral and royalty interests gain value over time?
The rate of production from all oil and gas wells declines over time. The decline rate slows in maturing wells and varies depending on the producing formation(s) and region within the U.S. Our evaluation process analyzes decline rates as a key factor in evaluating available assets.
How do I receive an offer for my minerals and/or royalties?
Please feel free to call our corporate office at 832-363-1198 or select the Request an Offer tab. Once you have provided as much information as is available, submit your form and an acquisition professional from our company will promptly contact you. Response time is most often within one (1) business day.
What information assists in expediting an evaluation?
It is vitally important that Tradition receive from you the most current and accurate information when it comes to a property evaluation. For most producing properties, we would appreciate being provided a copy of your production statement or check detail for the last three to six months. With regard to non-producing properties, we would like to procure a copy of the deed in which you acquired the interest (Warranty Deed, Mineral Deed or other document); a copy of the current oil and gas lease covering your property and (ideally) copies of any mortgages, liens or other encumbrances that might impact our decision to acquire your assets.
How long does the evaluation process take?
The normal evaluation time varies depending on the number of wells involved and can take anywhere from several hours to several days. Once you have had an opportunity to visit with one of our professionals regarding your interest(s), we can thereafter provide a more definitive time frame relative to completion of evaluation of your properties.
Is there any obligation to sell if I request an offer?
Absolutely not. There is never an obligation for you to sell unless you decide to contractually agree to do so by executing a Purchase and Sale Agreement with Tradition.
What happens if I sign the sale agreement?
Once all parties (buyer and seller) have signed the Purchase and Sale Agreement (PSA) Tradition will then conduct its due diligence on your property. This typically involves verification of title to the properties and that there are no encumbrances that might impact the interest being acquired. Once due diligence is complete and title is confirmed, a closing can be quickly handled.
What is the procedure at closing?
At closing you will be paid in full, for all interest being purchased, by wire transfer, certified check, cashier’s check or whatever method is most accommodating to you.
Are there closing costs for which I will be responsible?
In virtually all transactions Tradition incurs the entire cost of due diligence, document preparation, document filing and any other costs which may arise.
Will I have to pay taxes if I sell and how much?
In the vast majority of transactions you will be responsible for only paying federal income tax on the money you receive. If you live in a state with a State Income Tax you may also be responsible for the payment of that state income tax. We are certainly not tax experts and highly recommend that you consult with your local tax professional prior to any transaction.
My question wasn’t answered here, so now what?
If questions you have were not answered here, please feel free to contact us and we will be glad to assist with your concerns. Please call us at (832) 363-1198 or Email us with any questions you may have.
THE FOLLOWING IS A LIST OF COMMONLY USED OIL AND GAS ABBREVIATIONS FOR REFERENCE:
BOPD: Barrels of Oil Per Day
BWPD: Barrels of Water Per Day
DO: Division Order
GWI: Gross Working Interest
MCFPD: Thousands of Cubic Feet of Gas Per Day
MI: Mineral Interest
NRI: Net Revenue Interest
OGL: Oil and Gas Lease
OGML: Oil, Gas and Mineral Lease
ORRI: Overriding Royalty Interest
RI: Royalty Interest
SI: Shut In
SWDW: Salt Water Disposal Well
WI: Working Interest