Thursday, February 13, 2014

Just A Random Thought For Mineral Owners As We Go Into Tax Season

If your tax preparer is not an expert in oil and gas investments, one might consider getting him/her a copy (or recommending he/she get a copy) of the mineral rights handbook / manual linked at the sidebar at the right. Again, I have no connection with the author or the handbook (other than the link) but when I was thinking about this again, it dawned on me that the majority of mineral owners probably have their taxes prepared by a professional tax preparer. It also might be a good handbook/manual for financial advisers. In fact, if I was receiving any significant amount of royalties and I had a financial adviser, I would ask what resources he/she used or what training he/she had in the oil and gas industry. Just a random thought as I go through the day. Lawyers involved in oil and gas also might be interested.

2 comments:

  1. I checked the suggested link and am wondering just who is the author of this epistle. There are a lot of "barracks lawyers" in the world and it is nice to know who is giving the advise. Somehow, eighty pages seems a tad light for this subject matter.

    If the author is brief and concise, $47 is bargain.... if not, well.....

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    Replies
    1. Some immediate thoughts:

      1. The author is "inside" the oil and industry and is concerned about his relationship in the industry. I used to have a regular reader who sent me comments (anonymously) but he/she quit writing me -- his company told employees to stay off the internet except as needed for the company. The oil and gas industry is very close hold, and very strict non-disclosure rules. I used to have a family member in the oil and industry who would not tell me which company she/he worked for.

      2. Having said that, the website should include the author's background. The website might. I haven't explored the website lately.

      3. If one is a very small minerals owner, there is less need for such a book. What surprises me, based on comments I've seen at this blog, other blogs, and what I hear in the oil patch is this: how very little most mineral owners know about oil and gas. I am still getting comments from folks, as an example, that have to do with basic terms in the permitting process. The Bakken boom in Montana began 14 years ago; seven years ago in North Dakota and mineral owners are still asking basic questions about the permitting and leasing process. My hunch is that 90% of Bakken mineral owners do not have a book in their home on mineral rights, and have gotten most of their information from discussion groups.

      4. I agree: many "barracks lawyers." My concern, and I guess that's why I had the random thought/post: how many professionals -- tax preparers and financial advisers -- are hired by mineral owners and might not have any formal training or education in oil and gas industry.

      5. If I was receiving more than $150/month for the next 30 years in minerals (and everyone can set their own dollar limit), I would be paying much more than $50 for information. I have spent an incredible amount of money over the years on investment books and courses (including my very first investment court through "Forbes, Inc." and investing was a hobby for me. As an example, an incredibly good source for energy information is RBN Energy. Their subscription for their daily post is $75/month. Per month.

      6. Like so much in life, the value of anything is how valuable it is for any given individual. I assume the author set the price at the price point he felt he could at least break even. I have 24 folks who follow this blog on a regular basis. That's how narrow this field is. I'm surprised he can sell the book for less than $50 if it goes to print (as opposed to just an electronic copy). I forget, but I think the going price for a "vanity" publication at one time (many years ago) was about $5,000 for 100 copies.

      7. My reply is long because this is a very sensitive point with me: you have no idea how very little folks, who actually live in the oil patch, know what leasing is all about, and have made no effort to become smarter. Again, I have no "secret agenda" here except perhaps to support an individual inside the oil and gas industry AND to support mineral owners who are looking for advice. You know it's interesting: the "lawyers barracks" issue. My hunch is that a lot of the answers in the book are opinions. Sometimes the answers are NOT important. Most folks don't even know what questions need to be asked. That is probably the most important thing about these books.

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