Mexico’s shale development might have negative effects on majority of population
Monday, September 14, 2015
A large shale reservoir lies underneath Mexico, and the country’s private and liberal energy sector is opening up opportunities for oil and gas development.
Business Insider reports that drilling and land in Mexico could end up cheaper than in Texas, due to less expensive labor costs and less royalties to Mexico’s government than what United States landowners will accept.
Aubrey McClendon is looking to Mexico for development because of the cheap land and weaker private property rights. Mexican president Enrique Pena Nieto’s energy reform bill does not include provisions for local populations affected by oil and gas operations, leaving property owners worried about what will happen when land is taken for oil and gas development.
Via: Business Insider > Mexico’s ‘mother of all oil and gas rushes’ is about to get ugly
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.