Have you received an offer to buy your minerals? What State/County/Township are you in?

I'm in Ohio/Noble/Marion and continue to receive offers.  14 so far by mail, and another arrived yesterday.  Post your information and I'll draw a map of "mineral interest".    Have your offers increased, remained constant, or stopped coming?  Just curious, and it might be fun.  Thanks.

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Permalink Reply by scott peterson on June 5, 2013 at 6:50pm

Hiker, can u send me the spread sheet?  I will friend you with my e mail address.

Permalink Reply by The Hiker on June 5, 2013 at 6:54pm

Sure thing.  It's in OpenOffice, not Excel.  Actually, there are a bunch of calculators posted on GMS already in Excel.   I took one of these and massaged it.

Permalink Reply by williet57 on June 5, 2013 at 6:56pm

all the property around us HAS been leased to Chesapke

Permalink Reply by Richard Droske on June 6, 2013 at 1:36am

Owning just the mineral rights does change the picture. No carrying costs then so totally different numbers.

 

I stand corrected on the forced pooling isuue. PA does have forced pooling on wells deeper than 3800 feet (Onondaga Horizon) so all of Utica would fall under that. Currently Marcellus would not but there is a lot of talk about including that as well. Here are some links about PA forced pooling.

http://www.marcellusshalelawmonitor.com/marcellus-development/legis...

http://marcellusfacts.wordpress.com/legislature-2/forced-pooling-3/...

http://naturalgasdrilling.blogspot.com/2008_06_18_archive.html

 

I doubt anyone will offer you a lease for 1.5 acres unless a producing well is drilled close enough so that they have no choice as forced pooling gives them all the leverage.

 

This probably means that you are looking at 12.5% because if they offered that and you did not accept they could drill under your land anyways and you would not recieve any royalties until your royalties had covered 200% of your proportion of the drilling costs.

 

Owning only mineral rights does make your decision simpler though. In your place I would contact the companies buying mineral rights in your area to get an idea of what if anything you could get right now with no risk that they never drill. If you get no offers then the decision is made for you, just sit back and hope they drill close.

 

If you do get offers it is a bit trickier. Unfortunately you have no way of knowing the size of the pool you would be in so no way to know your percentage. Also no real way to assign odds that they will drill but with that many acres around you leased I would guess the odds are good.

 

Personally I would just use the offer you get for outright sale (since the people making the offer have much better info than you ever will) and assume that you would get a minimum  5 times as much spread out over 20 years or so.

 

 

 

 

 

 

 

 

Permalink Reply by Dawn Marie Snyder on June 3, 2013 at 4:19pm

Ohio/Belmont Co./ Wayne Twp. I have received 2 letters. I responded to Freedom. Offer started at 5k and only increased  $750. I laughed, of course and declined. No new offers. I think I will just wait and see what happens.

 

Permalink Reply by The Hiker on June 3, 2013 at 5:27pm

Thanks.  I was surprised that no one from Wayne Twp had responded so far.   You're in the thick of it.   Can you see the McCourt flame lighting up the sky from your house?

Permalink Reply by Dawn Marie Snyder on June 3, 2013 at 8:18pm

I don't live there. I live in Jefferson County. I also signed an agreement for a right away for a pipeline. I hope that makes it more tempting to drill on my property because there is no dwelling on it. That's why these companies that want to buy my minerals are going to have to pay for it to make it worth my while.

Permalink Reply by Richard Droske on June 3, 2013 at 9:29pm

Yes it would be crazy to sell to sell the mineral rights without first having signed a lease with a drilling company and got that payment up front.

After that  it becomes a bit more complicated decision. Depends on how likely you think it is that the company you leased to will drill there, has your company drilled successful wells nearby etc. If you sell you are basically betting they wont' drill, could be smart maybe not.

I'm not sure that having sold the right of way increases your chances that they will drill. If they actually put the pipeline in then maybe some. And if they don't then hey money for nothing and chicks for free.

Permalink Reply by Mark Duncan on June 4, 2013 at 4:06pm

Many people speak as though those who would sell  their minerals do that in lieu of a lease. Where is one to find a lease if no companies are interested. I have shopped many a company and broker with no luck?

Permalink Reply by Kenneth Bach on June 3, 2013 at 8:39pm

Have received offers to buy already leased mineral rights in Ohio, Monroe Cty., Franklin Twp.

Permalink Reply by Arlene S Bailey on June 4, 2013 at 10:34am

Have not received any offers for my 5.5 acres in Jefferson County.

Permalink Reply by The Hiker on June 4, 2013 at 6:47pm

Arlene:  Thanks for the response.  What township?

Also: If the thread here seems a bit scattered, it is because some folks are posting, getting replies, and then pulling their original posts.  Makes it a bit hard to follow.....

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