was told today buy a friend of mine that someone he knows is selling 40 acres of mineral rights in Harrison county (clendening lake area) for 15000 an acre for an old 12,5% lease. anyone heard offers like this?

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I have heard of slightly higher offers for better rates, 15k for 12.5% is pretty darn good though. Granted, if it's drilled you will make more.

Bill
Are we sure it will make more? 49% tax compared to 15%. And where was the location of high offers you heard.

The tax is 23.8 now (20% + 3.8%), but still it is far better than 49%.  I agree. Most of us could make more selling the mineral rights.  I don't think 15,000 is quite enough though.

If you sell the land and mineral rights then capital gains tax rate would apply and 23.8 might be right. When you lease the mineral rights, the bonus money is taxed as ordinary income and can be a whole lot more than 23.8%. The royalty income is also taxed at ordinary income rates but is levied on only 85% of the monies received because of the depletion allowance.

I heard they are trying to get rid or the 15% depreciation.  Jeez, just hand over the whole check to the government!

If i could get 15 for my 12.5% i think I'll sell some. But i would have to see it to believe it. Most I've been offered for my 12.5 is $8500 im close to tappan lake.

im just sitting and waiting, im pulling the trigger at 40,000 for 15% there is just to much gas down there.

i have heard up to 23k in our area harrison county

I hope so pat..but i can't see that price coming. Would like to know what some of the bakken land owners saw with mineral offers.

im hoping by the time they start buying minerals up here the trend seams to increase the value of acreage. plus its going to depend a lot on what hillcorp finds drilling over in Pulaski.

As sure as I am about the weather. Nothing is for sure, but would you buy a car for 15000 if the odds are against you on the car running?

If its a Cadillac i would. its just wait and see what these wells produce.

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