Replies to This Discussion

Permalink Reply by Barry D on February 4, 2016 at 2:10pm

Becky,

The way it was explained to me was, that if there is no production there is no value to the oil and gas rights.It would just be a guess to set a future value on the oil and gas rights.

The argument could be made that at some time in the future there will be a value,my question is when and how much will it be?

Others may argue that if there is production in your area then base the value on that. But what guarantee is there that the oil and gas rights under your property will be developed.

I know there are folks out there that are experienced in valuing oil and gas minerals and they may disagree, perhaps they will opine.

If it were me selling to someone I didn't know I wouldn't reduce the price at all. However, since this is a friend your feelings for them are a factor.

Perhaps you could a percentage to them and keep the rest.

As for your family member who does not wish to sever the oil and gas: let her convey her convey her rights. It may take a couple of deeds to accomplish the conveyance, but at least all will be satisfied.

• ▶ Reply