Looking to sell mineral rights

I have just under 10 acres just outside city limits of Saint Clairsville Ohio. I have been offered $5000 per acre to purchase my mineral rights. They are trying to sell me that they are going to buy it, however, it will never be drilled, because the city of Saint Clairsville is not allowing anyone to drill near the city. All of the acreage is just outside city limits but on the border of the city line. Does anyone have any input on this? Do you know if this is a good price or if I am being swindled?

Views: 1362

▶ Reply to This

Replies to This Discussion

Permalink Reply by Mickgyver on March 8, 2022 at 5:15am

. First verify the information you got from this leasing agent they have a way to elaborate on the facts . At one point when the original leasing started some companies paid low rates per acre to lease but as the leasing groups picked up and people became more informed about where the prices should be based on developed value  i heard that some St.Clair people got near $8500 plus  just to lease their mineral rights for 5 years between 2012 - 2014 area time frame and it varied down from there based on if you were in a leasing group or how many acres you actually had to lease . From what I hear the Cracker Plant is still going to be built near dillies bottom Ohio.If this happens prior to completion  the leasing will pick up again as they continue to drill and to supply wet gas to the plant to process and many other businesses should pop up related to the production of materials processed for plastics and related products . .If your area is not banned you could get that much or more just for each 5 years lease based on the facts of any restrictions near your property. .Check with St.C mayor or engineers office to get a written copy of any bans in place to stop leased property from being used underground in or around St.Clairsville . Also consider if you could take that $50,000 minus applicable taxes and invest it for your future benefit now versus waiting for an undetermined amount of time that it may or may not be leased or developed .in the end remember if you sell anything specify the depth of only the oil areas you will lease to them do not give up all mineral rights to unlimited depths , and do not allow them to have control on your properties .surface usage unless it does not matter to you.  finally if you decide to sell enlist a good gas and oil lease attorney to verify the wording of any lease to verify what you are giving up for your money. Hope this helps maybe some of the current lease holders near you can chime in to give you more things to consider .

Permalink Reply by Lynn mudder on March 8, 2022 at 5:51am

All good advise

Permalink Reply by deutchen on March 11, 2022 at 2:00pm

Good advice. I'd say go for it. I sold 1/2 my ownership in my minerals in 2015 near the peak of the oil & gas craze. That's the smartest decision I ever made. The stupidest was not selling all of it. Now, it's worthless. It's boxed in by other wells & and the interstate. It will never be drilled. There were people on this site back then saying never sell your mineral rights. Only a fool would do that. Then the bottom dropped out of the market and decent offers dried up. I got $9200 at the peak. I'd guess $5000 is fair now. I've invested my money and watched it grow since I sold. I like a sure thing because I'd bet of all the land that was leased only a small fraction has been or will ever be drilled. 

   Of course, it could be this company that made the offer knows something in which case you'd get more in the long run but who knows. You know for sure you can get $50000 now.

Permalink Reply by tillacat on March 10, 2022 at 10:03am
Thank you very much. That is very helpful.
Permalink Reply by Joe C. on March 13, 2022 at 2:33am

Tillacat, ask yourself this question, if you're a investor, would you buy a asset that will show no return in a high risk of 10yrs or never?? This company is lying to you. Contact a mineral valuation company who can look at your area, drilling, lease holds etc... There is a company who can help based out of WV. www.amcooilgas.com

I hope this helps

Permalink Reply by INVICTUS on March 17, 2022 at 3:49am

I'll amplify what Joe C. has  said.

The entity offering you the loot has information you don't have. A LOT. May it's a Landman. Look that term up and get educated.

Get educated. Quickly. Become an expert. At least in this narrow situation where you have been offered something with no prior solicitation from you. They came to YOU. YOU have something valuable they want. 

How hard do you work for the money you make or made (if you are retired?)

How hard will you work for $50k? Twice that amount? $250k?

Treat this situation as a business and ask for help. 

Oil and Gas attorneys in OHIO?

Uh, UMMM,   

I think I'll save that for another post. Or maybe a book.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service