Sell or Lease

We inherited 22 acres in Gilmore Township, Greene County. The family owns 80. So we own about 25 percent. We were contacted by a gas company wanting to purchase it for $5,000 a acre. A laywer told us we could get royalaties 25 percent royalaties from the 88 acres. Is it worth selling or leasing any suggestions?

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Replies to This Discussion

Permalink Reply by JK on May 19, 2018 at 3:36am

Everything is negotiable.. 

Permalink Reply by Marci Feustel on May 19, 2018 at 4:19am
A gas company contacted us. They are telling us they don't do royalaties. So I guess we will need to look around. If a gas company has property all around us. Would another company be interested in leasing?
Permalink Reply by RGB on May 22, 2018 at 12:03pm

Marci:

No operator will offer a 25% royalty rate on a lease, never. Unfortunately, this is not Texas or OK. However, with that being said, I have helped out with lease negotiations and purchase offers for folks like you. Truthfully, more people are selling their interests today than ever before. If you have time - give me a call at 304.290.3326. I represent one of the most active groups buying in Greene County, PA. A 3 minute call with me will be worth every minute, I guarantee it.
THX!!

RB 

Permalink Reply by Ted J. C. on June 2, 2018 at 9:32am

if you need cash now or are using the acreage as investment for retirement you can't find a better investment then the gas royalty. If you sell you can get upwards of 12,000 an acre right now but know that you could receive upwards of 5 or 6 thousand a month on royalties once production has started. Do you have the time to wait or do you need cash now?

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