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Different Ways Industry Pays for Drilling Rights

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Different Ways Industry Pays for Drilling Rights - PowerPoint PPT Presentation


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Different Ways Industry Pays for Drilling Rights. Rental - Annual fee for land use while exploring Bonus - One-time lump sum paid upfront for right to explore Royalty - Percentage payments of oil and gas value produced Tax - Governmental ‘fee’ on product value produced.

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slide1

Different Ways

Industry Pays for Drilling Rights

  • Rental - Annual fee for land use while exploring
  • Bonus - One-time lump sum paid upfront for right to explore
  • Royalty - Percentage payments of oil and gas value produced
  • Tax - Governmental ‘fee’ on product value produced