so did i have a company approach me...they even went up to $2000 an acre....I wanted to see how high they would go. The guy got downright defensive when i told him $2000 was not enough considering the amount in royalties I will be collecting in the very near future.
The money is in the royalties...don't sell those mineral rights...a representative from EQT told me that there are many companies all over that go around and buy up the mineral rights and just sit back and collect the royalties when the wells start producing. These companies make millions doing that. Its legal and they hope you are dumb enough to sell or in dire need of the cash.
ABSOLUTELY THEY KNOW SOMETHING...I found out after they called and offered the 2000 per acrce that the land I have 1/5th interest has 2 new Marcellus wells drilled and starting to produce...its only a few months away that I will start receiving royalties...its on land that has a very, very old lease and I didn't have negotiating rights, only royalty rights...but the royalties are going to be considerable...and they have permits to drill 3 more wells by 2012. Is your well one of those old shallow vertical wells and your old lease has the HBP clause...that is what this land I have the 1/5th share in has too. At the moment I have only been receiving a check once a year for the wells on this property because they were being used for storage...they were the old vertical wells. The land was originally owned by my grandmother's parents who passed the land and mineral rights to their children. I never dreamed it one day be a nice little cushin to retire with. But I had a gut feeling about this company offering this money...they went from 1500 to 2000 in a New York Minute...that was the give away! I only have about 40 acres in my 1/5th interest but it is included in a pool so I will do well. I have other land on my grandfather's side that is over 100 acres...EQT wants to work on a modification and I'm sitting back...and apparently there is one other landowner holding out too. Getting ready to sit down with them and seriously talk...at their request. This time no landman...the company itself.
I wish you much luck and hope all works out for the best for you...but 135K sounds good now but it could mean millions over 20 years in royalties...once you sell, all you get is the 135k. God Speed...
go to the penn state site and they have royalty calculators...it is of course a guesstimate but gives you an idea what you might receive in royalties...here is the link below;
If they buy the rights they own them forever even if no well is drilled. Thus they don't have to worry about trying to HBPing the land, and they will never have pay another bonus or have to renegotiate a lease. Plus they will never have to pay any royalty.
Like the Cougar said, once you sell the rights you will never see another penny. Don't do it unless you really, desperately, need the money.
Sorry for the empty box my computer started flashing and words were bouncing and it wouldnt work, Anyhow It is really bad they say to sell your rights outright. according to Chesapeke this play is worth at least half a trillion across Ohio . With a little play on words .their leader is the Frac King when it come to this industry . Here is a site that will give everyone an idea of what is happening , I have posted this before they said in the paper the well on a local persons property of around 40 acres ,with the well drilled by Consol near Barnesville, Ohio will enjoy around $30,000 a month , if the well keeps producing the 1.5 million cu.ft of gas a day as it began . This was before fracing I understand and I didn't even hear the mention of how much oil may be retrieved from this well . This wonderful thing appears to be happening fairly quickly. Best of luckhttp://www.investors.com/NewsAndAnalysis/Newsfeed/Article/136169752...
there is a well which was drilled herebby Consol
near barnesville ohio on 40 acres and that owner gets the entire royalty , before the well was fracked the paper said he will get over $30,000 per month .this well is producing i.5 million cu.ft of gas every 24 hours this is payment for just the gas as i understand