Last November when Kiko auctioned off 1000 acres of land and leased minerals in Western PA, the average price for the land was $5000 an acre without the minerals which astounded everyone. Right there we all new that land and minerals are very valuable. Of course the reasoning was that the acreage was along the Hickory bend pipeline so drilling must happen first there, we were right.
Monday nite was another distress auction which Ohio Land Management was asked to review two years ago. The mineral interest was the most complicated that anyone has ever witnessed. Nevertheless, in western Mahoning and Eastern Portage with ZERO wells or activity nearby. THE LAND (with no minerals) WENT FOR $7800 an ACRE!
Whomever paid that much for farm land deserves to lose their shirt.
well there must be a lot of company's getting a good tan because 7800 is about what most of us received around here with 18.5% to 22% royalties.
That has literally nothing to do with what we're talking about.
are you sure about that? its all about property value.
Am I sure that a totally inaccurate estimation of what people were paid for mineral rights has nothing to do with a conversation about surface land which contains no mineral rights? Yeah, pretty sure.
our first lease was no mineral interest at 5000 which we didnt sign,,,, this was suppose to be in my first post.
So an oil and gas company was willing to pay you $5,000/ac to sign a lease you couldn't legally sign? Sounds legit.
why would any oil company pay 5,000 for a lease with no mineral rights something is fishy here .....I dont understand what they were leasing
the 5000 with no mineral rights was a ROW. this thread was about property values. im really surprise the dixter couldnt figure it out hes just so intent into po po anything thats good for the north. once you sign your property away it will devalue your property significantly. so why would anyone sign a lease 5000 when the property is worth four times that.
and for dexters opening post "Whomever paid that much for farm land deserves to lose their shirt."i know of two farms in trumbell county that got 7000+ as a signing bonus.and this was is corn fields.
no we didnt want to sign it because it wasnt enough. gas leases always screws your property value up. so we waited for a pretty good offer. now the property we are talking about isnt some corn field.
You are not even on the same planet as the rest of us. This discussion has nothing--I'll repeat this so it sinks in--nothing to do with the price of a lease. Beyond that, your math skill are miserable. 5,000 and 7,800 are a wee bit different from one another. Plus, nobody in Portage or Mahoning counties were paid $7,800 for a lease. But otherwise you're totally right and I believe your fabricated story 100%.
sorry to say a right of way is not a lease it is in actuall long term ownership of your property with the only ending if the company abandons the pipeline in the lives of most people it will not happen ,,,,rendering the row worthless for resale ....more or less the row is now controlled by the oil and gas company and u cannot do any improvement on that row u just get to pay the taxes for the rest of your life on it