Current rates for Selling mineral rights?

We have acreage in union township and have been approached to sell all or part of our rights for about 7000 dollars an acre. This is quite a bit more than other offers we had received. Can anyone tell me if this is a good offer? Any suggestions for how to proceed would be appreciated.

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Permalink Reply by jonathan M. on November 25, 2013 at 2:30pm
Brian,

What company made that offer? Thanks Jonathan
Permalink Reply by Philip Brutz on November 24, 2013 at 3:37pm

 I still own my coal.  When you sign away your mineral rights what are giving up?  Do they have the right to come in and strip mine your land?  Could someone post one these contracts? 

Permalink Reply by Nancy LeNau on November 24, 2013 at 4:03pm

I live in S.W. PA.  and our coal rights are separate.  We are signed with Rosebud Coal. Hope this helps.

Permalink Reply by john p halloran on November 25, 2013 at 12:57am
You should keep everything separate.If you sell your mineral rights you better have specific clauses in the contract that spells out what they are after.You need to be careful,especially if you are selling as opposed to leasing. Selling is forever.
Permalink Reply by Philip Brutz on November 25, 2013 at 2:32am

John, I agree with you.  I am just curious how these offers to buy our mineral rights will affect long term use and value of our land.  I would like to read one these boiler plate contracts.

Permalink Reply by john p halloran on November 25, 2013 at 3:01am
Personally, I would never sell my mineral rights only lease them. If the mineral rights are sold without specifics, then anything the find is theirs to keep.
Permalink Reply by Philip Brutz on November 25, 2013 at 3:10am

I agree.

Permalink Reply by scott peterson on November 26, 2013 at 4:19am

Mineral sale offers are still rising in Millwood latest were 11,500 and 13,400 for my leased land with 20% royalty.

Permalink Reply by Philip Brutz on November 26, 2013 at 4:21am

I wonder what the return on their investment will be?  Double?  Triple?

Permalink Reply by scott peterson on November 26, 2013 at 4:24am

Exactly, they have to be banking on a huge return to be offering that kind of money. I was going to seriously consider selling at 15k but now i am teetering again.

Permalink Reply by Roger Carfangia on November 26, 2013 at 4:28am

Consult an attorney familiar with gas and oil. If you sell the rights to part of your land you take on a partner for ever. One that may be easy to work with or maybe not. $7000 sounds good,and curcumstance is a factor. Do you live on this land. Are you selling oil and gas rights and maintaning surface control? Mineral rights means everything. Someone familiar with what the market price is in your area should be consulted. It is money well spent to go into something of this nature with a attorney at your side. Let someone look at the contract and advise before making a decision.

Permalink Reply by mary ellen on November 26, 2013 at 5:08am

Scammers prey on people who need cash and can't wait for drilling.  My husband heard of a new scam that preys on them by making a very high offer to purchase their mineral rights.  The devil is in the details.  Unless it is spelled out very clearly in the contract, they take forever to pay. Knowing that the sellers need the money quickly, they will delay hoping that the sellers will settle for a lower amount if they agree to pay quickly.  If they don't, the minerals will be tied up for years. 

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