$15,000 per acre

was told today buy a friend of mine that someone he knows is selling 40 acres of mineral rights in Harrison county (clendening lake area) for 15000 an acre for an old 12,5% lease. anyone heard offers like this?

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Permalink Reply by Bill Barnaby on April 7, 2014 at 10:38am

I have heard of slightly higher offers for better rates, 15k for 12.5% is pretty darn good though. Granted, if it's drilled you will make more.

Permalink Reply by The Rooster on April 7, 2014 at 10:53am
Bill
Are we sure it will make more? 49% tax compared to 15%. And where was the location of high offers you heard.
Permalink Reply by Susan A Tippel on April 7, 2014 at 11:21am

The tax is 23.8 now (20% + 3.8%), but still it is far better than 49%.  I agree. Most of us could make more selling the mineral rights.  I don't think 15,000 is quite enough though.

Permalink Reply by Samuel J. Orr on April 12, 2014 at 3:41pm

If you sell the land and mineral rights then capital gains tax rate would apply and 23.8 might be right. When you lease the mineral rights, the bonus money is taxed as ordinary income and can be a whole lot more than 23.8%. The royalty income is also taxed at ordinary income rates but is levied on only 85% of the monies received because of the depletion allowance.

Permalink Reply by Susan A Tippel on April 14, 2014 at 7:40am

I heard they are trying to get rid or the 15% depreciation.  Jeez, just hand over the whole check to the government!

Permalink Reply by The Rooster on April 7, 2014 at 11:55am
If i could get 15 for my 12.5% i think I'll sell some. But i would have to see it to believe it. Most I've been offered for my 12.5 is $8500 im close to tappan lake.
Permalink Reply by pat on April 7, 2014 at 12:02pm

im just sitting and waiting, im pulling the trigger at 40,000 for 15% there is just to much gas down there.

Permalink Reply by Josh on April 7, 2014 at 12:48pm

i have heard up to 23k in our area harrison county

Permalink Reply by The Rooster on April 7, 2014 at 12:15pm
I hope so pat..but i can't see that price coming. Would like to know what some of the bakken land owners saw with mineral offers.
Permalink Reply by pat on April 7, 2014 at 12:26pm

im hoping by the time they start buying minerals up here the trend seams to increase the value of acreage. plus its going to depend a lot on what hillcorp finds drilling over in Pulaski.

Permalink Reply by Bill Barnaby on April 7, 2014 at 12:36pm

As sure as I am about the weather. Nothing is for sure, but would you buy a car for 15000 if the odds are against you on the car running?

Permalink Reply by pat on April 7, 2014 at 12:43pm

If its a Cadillac i would. its just wait and see what these wells produce.

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