I, like many on this site, have been following the Marcellus and Utica shale play for several years and may never have the opportunity to be involved in a drilling unit. Is there a relatively simple way for people to obtain a financial interest in a well or wells without owning mineral rights or an overriding interest?
I am not sure if this concept is practical or how to make it work but is there a possibility of some kind of stock market or other avenue for people to own an interest in a well or wells? I know large companies are doing this by purchasing mineral rights but I am thinking of a more practical option for the common person to be involved by purchasing $10 shares or something similar. This idea is not necessarily for financial benefit (depending on level of involvement) but for the enjoyment of having some kind of actual interest/involvement in this play. I understand that stocks of the companies involved in this play can be purchased but I am thinking of a more direct connection to this area.
Does anyone have ideas of how to make this concept a reality?
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A mutual fund that invests in mineral rights could work. The investors would be share holders of the fund, the fund would purchase the minerals. It can work and be very successful. Or a bunch of investors could start a business with the same concept.
U.S. Royalty Trusts are another 'pass through' vehicle available to get income fro the corporation to the individual with only 1 level of taxation (the individual income tax).
Trusts have no employees
Own no land or any other hard asset, except the right to receive either a percentage of net income or revenue from a production asset someone else owns
Trusts have a finite life--either when a certain amount of asset (oil, gas etc) has been extracted from the ground, a certain period of time has passed or in some cases determined upon the death of certain individuals
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