Nationwide Royalties » Oil and Gas Definitions http://www.nationwideroyalties.com Sat, 31 Jul 2010 06:38:15 +0000 http://wordpress.org/?v=2.8.2 en hourly 1 What Does BCF Stand for in the Oil and Gas Industry? http://www.nationwideroyalties.com/what-does-bcf-stand-for-in-the-oil-and-gas-industry http://www.nationwideroyalties.com/what-does-bcf-stand-for-in-the-oil-and-gas-industry#comments Tue, 11 Aug 2009 18:56:38 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=444 Within the oil and gas industry, BCF stands for billions of cubic feet (of gas).  In the United States and abroad, a cubic foot is the standard measurement of gas at atmospheric pressure.

]]> http://www.nationwideroyalties.com/what-does-bcf-stand-for-in-the-oil-and-gas-industry/feed 0 Barrel of Oil (BBL) http://www.nationwideroyalties.com/barrel-of-oil-bbl http://www.nationwideroyalties.com/barrel-of-oil-bbl#comments Sat, 01 Aug 2009 16:21:52 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=435 A barrel or oil or BBL is the standardized unit of measuring oil within the United States and is equal to 42 gallons. In some other countries, barrels of oil are measured differently by use of the metric system and are equal to 159 liters.

]]> http://www.nationwideroyalties.com/barrel-of-oil-bbl/feed 0 What is an Overriding Royalty Interest? http://www.nationwideroyalties.com/overriding-royalty-interest http://www.nationwideroyalties.com/overriding-royalty-interest#comments Sat, 01 Aug 2009 15:15:57 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=425 An overriding royalty interest is a type of oil and gas royalty that is created from a working interest.  An owner of an overriding royalty interest is entitled to a percentage share of the revenue generated from the gross production and free from covering any associated operating or production costs.  Owning an overriding royalty interest does not however eliminate the owners responsibility to pay their portion of state and federal taxes related to the property.

]]> http://www.nationwideroyalties.com/overriding-royalty-interest/feed 0 What is a Royalty Acre? http://www.nationwideroyalties.com/royalty-acre http://www.nationwideroyalties.com/royalty-acre#comments Sat, 01 Aug 2009 15:07:00 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=423 A royalty acre within the oil and gas industry refers to the mineral owner’s royalty on one acre of leased land.

]]> http://www.nationwideroyalties.com/royalty-acre/feed 0 What is an Oil and Gas Royalty? http://www.nationwideroyalties.com/oil-and-gas-royalty http://www.nationwideroyalties.com/oil-and-gas-royalty#comments Sat, 01 Aug 2009 14:59:57 +0000 Robert H Hilley IV http://www.nationwideroyalties.com/?p=421 An oil and gas royalty is essentially a right to oil and gas or other minerals.  It gives the royalty owner the right to a specific share of oil and gas produced from a property without the responsibility of sharing in the costs of the development of the property.

The oil and gas royalty owner does pay production or operating expenses, however they are responsible for paying the Federal income tax related to their portion of the royalty.  This tax is also known as a severance tax.  In addition and depending on the terms of the lease, some oil and gas royalty owners also pay what is known as a handling cost.  The handling cost is directly related to the royalty owners percentage interest and covers the expenses related to getting the oil or gas from the wellhead to a pipeline or refinery.

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