Anyone ever sold their mineral rights?

[TexasBred]

Several companies in the DFW area I understand have done the same and some have completely dropped all offers.

You can still get the big offers if you have land adjacent to a big hit. Just be prepared to sign confidentiality clauses and keep your mouth shut!

Maybe so Boogie....I haven't leased anything in a while. But my "country friends" sure got kicked in the rear on the lease they were negotiating....Some of these that were dropped were some of those big residential areas that had the neighborhood committees set up to negotiate on behalf of all. Saw on TV where gas company completely pulled the deal off the table for one of these groups.

 

[Lammie]

Several companies in the DFW area I understand have done the same and some have completely dropped all offers.

You can still get the big offers if you have land adjacent to a big hit. Just be prepared to sign confidentiality clauses and keep your mouth shut!

Maybe so Boogie....I haven't leased anything in a while. But my "country friends" sure got kicked in the rear on the lease they were negotiating....Some of these that were dropped were some of those big residential areas that had the neighborhood committees set up to negotiate on behalf of all. Saw on TV where gas company completely pulled the deal off the table for one of these groups.

That was in the article I pasted, when, last week? Yes, those neighborhood associations priced themselves out of a deal. People get too greedy. Lawyers, I imagine.

We were supposed to have received our first royalty check on Nov 1, but Chesapeake sent the division statement to the physical and not to our mailing address, so now it won't be here until Dec. 1. Two more wells on the pool coming soon. It just takes so long to get things rolling. They started drilling the first well in March and we have not seen royalties yet.

I have heard that Chesapeake was reducing bonus payments across the board and that 5000 was going to be the new high and not the new low.

 

[1982vett]

Got a few suggestions or something to think about. You are thinking about selling mineral rights with a well already in production. Do you have any idea how much oil and gas it is producing? Yes or no. If you don't their is a railroad commission website that post production records even if they are 3 months behind, it would give you a better idea what is actually going on. A producing well takes the dry hole risk off the table even if it is not a gusher. Do a few calculations on what it might earn in the next 20 years. My opinion is firming on the no sell side because I have already seen how long they can produce beyond inital expectations, mostly due to new technology and drilling methods. Even the bad ones that got shut in 10 - 15 years ago have been repooled and drilled again. Use the income to pay down debt faster and build a larger emergency expense fund. Hopefully the income will outlast the debt and the rest is like having a winning lottery ticket each month. It is the cherry on top of the sundae and you didn't have to work for it. Don't think to short term. It is great to be out of debt and all, but think of the future income that you might give up for.... here it comes..... Instant gratification.

Just don't sell to hasty. I don't believe their is to much "long term downside risk" in holding the mineral rights. Short term, maybe, but long term energy needs are always going to be around.

 

[Lammie]

I think you all are right.

 

[backhoeboogie]

I think you all are right.

 

[1982vett]

I think you all are right.

Recon we should print that out and have it framed. :lol2: Lord only knows when we will hear that again. :lol:

 

[john250]

I think you all are right.

Recon we should print that out and have it framed. :lol2: Lord only knows when we will hear that again. :lol:

You can always tell a Texan, but you can't tell her much.

 

[Lammie]

I think you all are right.

Recon we should print that out and have it framed. :lol2: Lord only knows when we will hear that again. :lol:

Very funny. Ha ha.

 

[1982vett]

Just got to throw a rock at a hornets nest. :lol:

 

[ArrowHBrand]

Up here in my neck of the woods it's not petroleum they are looking for but veins of rock and gravel. A friend of mine, his grandparents bought their farmstead in the Depression by selling gravel under their place. The company came in, took off the black top soil, flattened all of the hills by removing the gravel, then replaced the top soil. My friend's dad still farms that place today.
Our place was mined for gravel until about ten years ago, but we've had several offers from people who want to restart digging. We've turned them all down.

 

[TexasBred]

Up here in my neck of the woods it's not petroleum they are looking for but veins of rock and gravel. A friend of mine, his grandparents bought their farmstead in the Depression by selling gravel under their place. The company came in, took off the black top soil, flattened all of the hills by removing the gravel, then replaced the top soil. My friend's dad still farms that place today.
Our place was mined for gravel until about ten years ago, but we've had several offers from people who want to restart digging. We've turned them all down.

Arrow..have seen the same done in Central and East Texas. Selling gravel to the State or to private companies. Not big $$ per ton but lots of tons going out and it adds up to excellent money. And done properly you can hardly tell they were ever there after it's reclaimed. Have seen some of the lignite mines around the state and the places are much prettier after they're mined than they were before hand.