Tim, are your related to Carrie and Bob Rhor of Preston county WVA? They died many years ago but they were relatives of mine. My mother is a Zinn from WVA and we are new to this whole thing. She has been contacted by some people (dont know who they are) wanting to sell land or mineral rights to them. Her children are trying to look out for her best interests concerning this stuff. Any and all info that we should know will be helpful. Hopefully I will hear from you soon. If anyone else has info on how to play this game let me know. Thanks all.
Companies, often composed of private investors rather then drillers, often send letters wanting to buy mineral rights in "hot" areas. Last one I got was offering $800 an acre. The bonus signing to lease to gas companies is currently around $750 to $1000 an acre, so a sale does not make sense at this time.
Do you know where your property is in relation to currently permitted Marcellus wells? (State DEP for this info). Leasing activity is picking up in Preston, but at the moment it is pretty focused on several areas. Additionally, there is a non-profit, informal negotiating group called the Preston Gas Association (Google) who is negotiating with companies on behalf of many individual landowners.
My family has owned mineral rights in Prestion for three generations. My grandfather's advice was always to lease rather than sell mineral rights and to consider them a long term, high risk investment with usually low maintenance costs.
You really need to do some research and familiarize yourself with the overal picture of the Marcellus in Preston and West Virginia in order to make good decisions on your mother's behalf. So many people say, "Well, they're offering me a check for $100,000 and that's a lot of money" and sign when with the right research and lawyer, they could get a good bit more and a favorable lease. Not guaranteed, of course, but certainly worth spending some time on.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]