Selling mineral rights once leased??

Hello, not knowing where to look, is it a wise or unwise thought to think about selling part or all rights AFTER a lease is in effect???? Does that mean that a 'said' company would buy or pay you for your royalties on a well, that you already receive $$ from?? And is it for the life of the well and on any more proposed well heads on a set pad. Being contacted a few times, was wondering if this is a decision that needs to be REALLY thought over,,,,any constructive advise, greatly appreciated, or a discussion page to look at,,,,Thank you

Views: 461

▶ Reply to This

Replies to This Discussion

Permalink Reply by Nancy Mosley on January 29, 2014 at 12:31pm

As I understand it, if you sell "mineral rights" whether leased or not you are selling the rights to all the minerals under your land, and to any money coming from them in the future. If you sell "royalty rights" it is rights to the royalty either for a term of years or for the life of the well. I am not an attorney but this is what I understand from reading. There are many threads on this forum about this. Most people say don't sell mineral rights unless you really need the money now because usually you will collect more over the life of a well than from the sale of the rights. Each situation is different because of different wells and geology, and each person's needs and interests. Search this website and see if you can find other discussions. A lot of really knowledgeable people have written on this.

I think it is fairly unusual in the East, where Marcellus is, to sell royalty rights. More common in Texas and Oklahoma, I think.

Of course a person can always sell 1/2 of the rights and retain the other half.

Permalink Reply by forutica on January 29, 2014 at 3:53pm
I'm selling 50% of my minerals. Would rather have guaranteed money than not know if it will be drilled or if it is if the well is any good as the amount PR acre its worth right now is pretty significant. I also broker minerals so if you decide to do what om doing let me know and I will help you out. (330)275-0408
Permalink Reply by Elnathan Cory on January 29, 2014 at 4:39pm

Selling mineral rights or gas rights to a leased piece of property has one drawback and I think it is a major one. All leases expire if not drilled. If you leased it say a year ago it is likely that your lease will expire in four years. Then you can lease it again. There is no way of telling what will happen in the future. If they drill, your in the money. If they don't your lease becomes renewable and your rights even more valuable. If you sell now it would have to be for a large sum of money.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service