Replies to This Discussion

Permalink Reply by D Thomas on March 3, 2013 at 12:38am

My friend just Received $7800. on Wed and an additional check for $1300. on Thursday.

This totals $9100. for 16 days time on a mere 22 Acre tract within a 504 Acre Unit.

Keep in mind this is AFTER State Tax.. still has to pay his Fed Tax but I'd say $240,000 Gross on 22 Acres is an amazing sum. Also.. this well isn't producing but 2.5 Million Cubic Feet Per Day and 300 Barrels of Liquid.

Imagine.. some of the Belmont Co. Wells produce 10 times that amount!

Anyone who "Sells Out their Mineral Rights" may not be making a wise decision!

Why Sell when you can Lease for 5 years and gain Millions in Royalties!

So far the most confusing is a local group who seeks to Sell instead of leasing our minerals.

Once you sell.. you're "DONE" / period.. no more money for you after that!

When the Big Trucks Arrive to Drill.. I wanna JUMP UP AND DOWN and TOSS MY HAT IN THE AIR!

What I won't ever do is "sell" my mineral rights.. lol that's just not smart! duh!

Don't Sell Mineral Rights! ....LEASE....

A local group in Bellaire are trying to convince everyone to "sell out" 

It's great for THEM because they gain 5% of a larger initial sellout sum.

They aren't going to care.. just so they get THEIR Money.. but in my opinion.. you're giving away your future and the future prosperity of your kids and whatever heirs you may have.

If you sell.. go buy yourself a big screen tv and a case of Busch beer.. that's about the mentality of most of the "sheeple" who "Sell Out their Valuable Mineral Rights" .. duhh!

Trying to figure out why they bothered to insert the term "R O Y A L T Y" in there at all!

They should've named it "EAST OHIO GIVE IT ALL AWAY TO THE RICH GUYS GROUP"

Anyone.. Anytime.. will be willing to BUY Mineral Rights.. why?
Because investors know Belmont County is going to be unrecognizable in just a few years... be patient.. lease.. and when they drill.. You and Your Heirs will reap decades of Royalites!

Permalink Reply by bo boboski on March 3, 2013 at 4:15am

Great info, great advice!  The well by us flow tested at 2.8mmc. and 1980 BOE. pr day. the calculator is getting a workout.

Permalink Reply by D Thomas on March 7, 2013 at 12:18pm

Appears the Ohio Valley Royalties Group isn't doing so well.. guess there aren't as many desperate and poor as they imagined.. least not enough to complete the "SELL OUT" of your Mineral Rights.. forever and ever and ever.. 

Lease.. Lease.. Lease.. Do Not Sell Mineral Rights.. make them "pay you and your kids" for the next 30 years. My friend receives over $20,000 gross from a mere 22 acres in a 504 acre Unit.. with a meager 2.5 million cubic feet per day!

Not bad for a country boy! haha

Permalink Reply by john on May 30, 2013 at 5:13am

What do people mean when they mention the gross royalties? Is that over a certain period of time? Is that 20k a year?

Permalink Reply by The Rooster on March 17, 2014 at 2:59am

Do you realize that some people cant lease because they are held by production from a lease that may be 30-40 years old. so they have no chance for money until they get drilled, which may not happen and no sure things when it comes to how a well will produce and how much of your land will be in the unit. what if you are older and don't have 10 years to wait and hope.there are major tax implications also.15% if you sell minerals 35-49% if your getting royalty payments. I think you need to look at all case and points before you throw out all the DUHHHS!!

Permalink Reply by evan on March 17, 2014 at 3:20am

Everyone says 15% capital gains if you sell your mineral rights. not really. It's more like 22-25 % after all taxes. Trust me I know

Permalink Reply by The Rooster on March 17, 2014 at 3:34am

I can believe that evan, but also you have the chance to take that money and buy other property and be exempt of taxes on that money. nobody has the right answer on sell or not sell. I just thought it was not fair to say how stupid it is to sell when everyones situation is different. the only thing that's stupid is to not educate yourself as much as you can before making your choice. I think this site has helped all of us on that. thank goodness. 

Permalink Reply by time will tell on March 18, 2014 at 3:30am

does anyone really know what royalty payments will be with a good lease per acre ?

Say in Belmont county . 

I have heard from 200.00 an acre to 1000.00 per acre .

Lets say the well is doing  10 mill a day and 300-400 boe .

Permalink Reply by time will tell on March 18, 2014 at 3:42am

The reason I ask this is we attended the meeting that Rice Energy had at Union Local school a few weeks ago and Toby , the main man said that the royalties would be more like 200-300 hundred dollars per acre per month , so what gives ???

I know someone that I trust that told me that there mechanic had just quit there job because he was now receiving $ 1000.00 per acre per month in west Virginia .

They have 19 acres leased .

Was anyone else at the Rice Energy meeting ?

 

Permalink Reply by Pro Geo on April 14, 2014 at 4:10am

Time:  I think that is a low value for the region.  Understand that these are shale wells and the production will decline quickly through time.  Therefore the highest royalty payments are given in the early part of the well's life.  As a former energy professional I recommend that you get professional help with structuring your lease so that you do not get unfair deductions of your royalties.  

Permalink Reply by Mark Mijavec on April 14, 2014 at 3:12pm

[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]

married filling joint. 

I see a lot of information on here and wanted people to have one of these.  This is a marginal rate chart.  This is to be used on AGI after you itemized deductions, (or standard) and after your exemptions.  So in my cased we usually have around 20,000 in itemized and we are a family of 6 (6 x 3900) so another 23400 then our income would be taxed.  The tax is progressive and you do not pay the highest tier until  you reach that dollar amount.  Keep in mind there are phase outs and there is a new investment tax of 3.8 as well if you meet certain requirements.  0 

• [Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]

• 10% on taxable income from $0 to $18,150, plus  1815

  • 15% on taxable income over $18,150 to $73,800, plus   8347.5
  • 25% on taxable income over $73,800 to $148,850, plus  18762.5 
  • 28% on taxable income over $148,850 to $226,850, plus 21840  
  • 33% on taxable income over $226,850 to $405,100, plus  58822 
  • 35% on taxable income over $405,100 to $457,600, plus  18270 
  • 39.6% on taxable income over $457,600.
  • So if I made 457600 after my 44,000 in deductions I will pay tax of  127,157 on income of around 500,000.  My effective tax rate would be 127157/500000 or 25.57%  Now this is a generalization.  The would be other things phased out (child tax credits, education credits and the personal exemption would be reduced as well  I also did not take into consideration the new investment tax as well  which is 3.8.)  However I also did not take the 15% depletion that we are allowed....until they take it away.  This is just meant to give people information.  Also you will have state and local tax if applicable.   

Permalink Reply by Jeremy on August 29, 2014 at 6:11am

Someone I know and I have seen the royalty statements - Guernsey County $1,075/acre/month through the first 5 months.