When a landowner finds or discovers natural gas deposits in the land that he owns the process of natural gas royalties begins. If the landowner does not have the financial resources to exploit these deposits himself then he could either sell the land to a company that specializes in this type of work or he could lease the land to a company that can come in, exploit the deposits and then the landowner would get paid royalty payments based upon the value and amount of natural gas removed.

The payments the landowner gets are dependent on not only the amount of natural gas removed but also on the market price of natural gas at the time. It’s well known that the price of natural gas is volatile, there is usually and “adjustment mechanism” in place in the lease contract that allows for the swinging of the market.

It’s really best if you find natural gas on your land to look to a trusted oil and gas company that can assist you with this process and protect your assets.

There are a lot of ways to mishandle the situation and you do not want to get into a situation where you are not making as much money as you could. Also you may want to sell your royalties. Again, look to a respected oil and gas company for assistance when it comes to natural gas on your land.