Would You Sell Your Land & Minerals? And If So How Much Would You Take?

My husband and I were approached by an invester to sell our land with the OGM rights. We are thinking about selling our land that is located in the WET UTICA region and has great geology. We would like to get the opionion of other land owners out there. If you were approached would you sell? And if you would sell what would the price per acre be?  Half of our acerage is leased and the other hald on a seperate parcel is not leased. It seems like if we do the math of the royalties over 30 years there is allot of money coming in. So do we sell? And If so what do we ask per acre? Thank You & God Bless =)

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Permalink Reply by russell s moody on June 19, 2015 at 5:48am

I would take 20000/acrea I am in lycoming co PA in mcnett township I have 45.5 acrea

Permalink Reply by mark alters on June 19, 2015 at 6:31am
20 grand??? Do you think that is realistic?
Permalink Reply by russell s moody on June 19, 2015 at 6:53am

Idon/t know I will take offers

Permalink Reply by Robert Allingham on June 19, 2015 at 8:13am

Selling only oil and gas rights for 6,500/acre in center township Butler County, Pa. NOT selling mineral rights. Keeping other two thirds of my acreage for royalties.

Permalink Reply by mark alters on June 20, 2015 at 4:31am

I did not know you could sell one and not the other. What is the reason for keeping mineral rights?

Permalink Reply by john tindor on June 19, 2015 at 8:18am

Keith,

Thanks for initiating this conversation.  I'm sure many people could benefit from the study of this topic.  I appreciate all who have provided information, figures, and even conjecture.

Permalink Reply by william Allen. Ladd on June 19, 2015 at 11:14am

My answer to this is a resounding NO!

My property has been in my family for better then 150 years. I grew up here, My father grew up here. I am the fourth generation to call this little piece of the earth home. It has been a terrible struggle to keep it.  Why would anyone abandon his home and try to start over in a strange place, especially at my age?

Dollar bills are NOT the most important part of life and living! Far too few people can understand this thought!

Bill Ladd

Permalink Reply by mark alters on June 20, 2015 at 4:32am

I am not saying to sell the property. I am talking about the mineral rights. Are you also opposed to leasing for gas?

Permalink Reply by william Allen. Ladd on June 20, 2015 at 7:47am

Hi Mark....

My property is leased!

Six months ago we received a bonus payment. A few weeks later we received an offer to buy our mineral rights for an enormous amount of money. And tomorrow,  (Sunday morning), testing on several water supplies on other adjoining properties is to be done in anticipation of drilling a few hundred yards away. Having said this and my roots going deeply on this property plus other considerations,  Well...... what would you do?

Other folks I know who move away from their lifelong homes were never happy no matter how much money they were paid.

I can understand the opposition to any kind of drilling in the finger lakes area of New York state. The possibility of contamination of the lakes or pipelines bursting and spewing whatever and finding its way into  the lakes would be very hard to accept for me!

Oh yes, And I lived my first 15 years near Geneva, New York. I recall the swimming area of the park on the end of Seneca Lake being closed due to some kind of contamination

Bill L.

Permalink Reply by David Allen Lilly on June 20, 2015 at 11:00am

There is absolutely no way I would ever consider selling my mineral rights.

Just remember, if you are offered $10,000 and acre the buyer expects to realize about $100,000 an acre over the lifetime of the lease.

That's what you get, 10%, maybe a little more if you hold out but certainly you will never get more than about 20% of the expected lifetime revenue from your lease.

And consider this, their has been a lot of seismic testing going on around here and it has been reported in other areas by people on this site.

In my area of Ohio, Guernsey county, these are speculative shoots, not related to the Utica.

I believe that the vast majority of mineral rights sales are surface to core. In other words if a much more financially rewarding formation is discovered and the technology is developed to reach and extract it you get none of it and your buyer gets it all.

Sales of mineral rights are 99.99% of the time a very bad deal for the seller.

Hold onto your mineral rights tightly.

Permalink Reply by Tony Yurina on June 20, 2015 at 11:44am

Something I read long ago:

"Only when the last fish has been caught, the last river polluted and the last tree cut down, only then will you realize money cannot be eaten." 

A wiser person may consider it to sell a percentage of his minerals for SPECIFIC formations "Utica, or Marcellus, or Point Pleasant" but not ALL minerals or all oil / gas for ever.

Permalink Reply by David Allen Lilly on June 20, 2015 at 12:33pm

I know you and like you, I am not picking a fight. What would be wise about selling any of your mineral rights ?

I cannot think of a single good reason, because you are basically giving away 90% of your money in the long term for 10% up front.

And I will bet you the vast majority of mineral rights sales have and will be surface to core.

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