My husband and I were approached by an invester to sell our land with the OGM rights. We are thinking about selling our land that is located in the WET UTICA region and has great geology. We would like to get the opionion of other land owners out there. If you were approached would you sell? And if you would sell what would the price per acre be? Half of our acerage is leased and the other hald on a seperate parcel is not leased. It seems like if we do the math of the royalties over 30 years there is allot of money coming in. So do we sell? And If so what do we ask per acre? Thank You & God Bless =)
That happened to me!!!
If you sell your land with the mineral rights to an investment company, odds are you will see your surface tract back on the market for sale with a gas/oil reservation. Most investment companies looking for land and minerals usually only want one or the other but most of the time they have to buy both to get the one they really want.
I own a real estate land brokerage here in Ohio. We have been involved in millions of dollars of real estate sales involving surface and minerals especially with the recent "land grab" here in Ohio. We represent both buyers and sellers. Something to think about is maybe asking them if they just want to purchase a portion of your acreage or a percentage of your OGM'S. That way you can keep some land and minerals for future speculation. Thats some now and hopefully some later!
My advice would be to keep doing what you are doing. See whats happening in your area, talk to a professional about values and the most important thing, talk to the folks who will have to deal with your decision years down the road. Remember, land is forever. Several years back my grandfather sold a large portion of our family farm to the coal company which now has a producing Marcellus horizontal well underneath it! I often wonder what he would think about his decision today...
If someone has approached you about buying your land with minerals, thats just one individual or company. Odds are you may be leaving some money on the table. What if it your acreage is marketed correctly and hundreds of folks knew it was for sale? This is a good way to also get a "feel" for what top dollar may be for your acreage...
I would beware of purchase contracts that appear to be "options to purchase" We have ran into a few companies passing these out to landowners and the buyers sometimes try to resell your acreage to other investors before they close with you. This can also tie up your property for quite some time. There is nothing wrong with buying and reselling real estate for profit as long as its done correctly. You should have your attorney review any offer you receive.
You started a great discussion..... Good luck to you!
Please check out Sister Site gohaynesvilleshale.com and check out the Discussion titled: "Minerals and Royalty: Or What Did I Just Sell To That Guy?" by GHShaler Dion Warr...Who is a frequent Professional Contributor to GHS and a great GHS Asset. It is a great explanation of mineral acre vs. royalty acre. Don't get cheated out of your minerals... Read this to get some "beginning" info before you decide...
Please note that this info is slanted a little toward Louisiana mineral owners...But it works for basic FYI info.
Good Luck to All of You GMShalers!
DrWAveSport Cd1 7/2/2012
I was just offered $4,000 acre in the super rich area Wash. cty PA