Value of mineral rights
Several members of my family and I own approx. 40 acres in Potter Co. I wish to retain the mineral rights and sell just the property. What is a fair price per acre to reduce the sales price for this? The buyer is a friend, so I would put in the deed that there would be no surface activity permitted if I ever lease my rights to a gas company.
One of my family members feels that it is somehow "unethical" to sell the property but retain the mineral rights. I think in her mind it is like telling the buyer, "You can have the property, but we are keeping the grass." Any thoughts anyone? Got an opinion Jack Young?
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Replies to This Discussion
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Permalink Reply by Barry D on -
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.
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