Anyone else getting hit up by the a company wanting to buy out your mineral rights?

[94form2000z]

Got leases on both homes, and I used to come home to a business card on my door everyday. I figured they would get the picture but eventually called them and told them to quit wasting their time.

I got the bonus checks on both but have yet to receive any $ for royalties. I know at my rental they were having issues with leasing some common properties which affected us getting paid.

[propellerhead]

I got the bonus check when I signed the lease. Since then it's been the two $1 checks. If I'm not going to be in this house for the next umpteen years, then I'm thinking it's a better deal to cash out now. I don't think it's gonna be a show stopper if and when I sell the house. Heck, there are many subdivisions in DFW where the developer of the land kept all the mineral rights. I have friends at work that don't own 'em.

So, I'm here trying to get feedback from those who may have been down this road.

Why are every single one of your posts edited by Leah?

Where?

[94form2000z]

Where?

It appears Leah ownz ur sig lol

Last edited by Leah; Yesterday at 10:18 PM.

[sig239]

I got the bonus check when I signed the lease. Since then it's been the two $1 checks. If I'm not going to be in this house for the next umpteen years, then I'm thinking it's a better deal to cash out now. I don't think it's gonna be a show stopper if and when I sell the house. Heck, there are many subdivisions in DFW where the developer of the land kept all the mineral rights. I have friends at work that don't own 'em.

So, I'm here trying to get feedback from those who may have been down this road.



Where?

But selling land with no mineral rights will be a lot harder when they know there maybe some thing under it. How much does no rights cut off in $$ and a lot less attractive to a buyer. The 1500 now may cost a lot more on the other end.

[WildBill]

But selling land with no mineral rights will be a lot harder when they know there maybe some thing under it. How much does no rights cut off in $$ and a lot less attractive to a buyer. The 1500 now may cost a lot more on the other end.

When selling land or residential lots, mineral rights really hasn't been an issue for quite a few years, especially on the residential side. In large rural tracts, it's now considered a bonus if it's included in the price.
In a residential area, you're just not going to get much of a royalty check IF the hit gas AND begin producing. Although, I could see where some people would believe that having mineral rights would be important.

[Strychnine]

In a residential area, you're just not going to get much of a royalty check IF the hit gas AND begin producing. Although, I could see where some people would believe that having mineral rights would be important.

There's really no "if" which also eliminates your "and."

It's hard to not hit gas around here. The Barnett Shale is a blanketed reservoir. Some sources report the dry hole to producing well ratio well is in the 1:700 range.

Accoring to Oil & Gas Financial Journal:

But a Barnett shale well is worth all the effort and expense to the operators; dry hole risk is all but nonexistent, and the wells produce sizeable volumes of natural gas at steady rates for a long time.

As for *some* pepole not thinking rights are important... if you live anywhere west of DFW airport you should be concerned about your mineral rights.

It wasn't long ago that people all over Arlington were being offered $20,000+ per acre and 25% or higher royalties to LEASE rights, not even to buy.

And there's a shitload of NG here for the taking:

Tarrant County not only continues to lead Texas' 254 counties in natural gas production, but might lead all counties in the nation, according to the Powell Barnett Shale Newsletter. It said in its weekly edition today that it "believes Tarrant County is also the highest natural gas producing county in the U.S. and has asked the U.S. Energy Information Administration for confirmation."

Tarrant produced 55.3 billion cubic feet of gas in October, with Johnson County, its neighbor to the south, coming in No. 2 in the state with 43.3 billion cubic feet.

http://blogs.star-telegram.com/barnett_shale/#ixzz1Batx8UWN

As for the "you're just not going to get much of a royalty check"... tell that to these people:

http://www.star-telegram.com/2010/11/08/2613582/chesapeake-has-new-monster-barnett.html

Late last year this well was averaging 17.8 mcf per day

It goes by “White South #1H,” not a very sexy name even for a natural gas well. But the southwest Arlington well is suddenly making waves as the mother of all “monster” wells in North Texas’ Barnett Shale, the biggest gas-producing area in America.

The well’s September production is exceptional, outstripping the top one-month production of all the other approximately 14,000 producing wells in the Barnett Shale,

expected to recover gas from under “about 500 properties” that sprawl across 275 to 300 acres

[94form2000z]

It wasn't long ago that people all over Arlington were being offered $20,000+ per acre and 25% or higher royalties to LEASE rights, not even to buy.

My rental in Arlington got around $25k /acre bonus but issues with them leasing some common properties is affecting us getting royalties. Hopefully they work it out.

I self negotiated my current residence before it all went down hill for $18k /acre. I ended up tracking down the company to do it, as though were not actively pursuing leases at that time. Glad I did it when I did.

[WildBill]

Strychnine
Remember, we're mainly talking residential areas. How many homes are on an acre on average?
With the current price of NG, any new lease contracts are not going to come close to the $25K/acre you posted.
Most contracts I've seen have a floating price(at least since the Barnett Shale has come into production) that's based on the commodity market prices. It's not like in the past where you have a set price for the entire contract.
There's what some of these independent lease guys portray what will be paid and then there is REALITY.

[Lone Sailor]

They're going to get them whether they pay you or not, but it's easier for them to just pay a small fee and have free rein. Otherwise, once they get to one of your neighbors they will be close enough to get to yours without your ever knowing about it.

[Gtracer]

They already know something or else they would not offer. I work for a Home Equity company and we see these all the time.
First they offer you 1500 and then a couple years down the road you will see all of the hold outs getting 20k+ per acre.

I say wait and hold out and you have a 50/50 chance they drill in your area.

[Real Estate Nate]

..

[BP]

They're going to get them whether they pay you or not, but it's easier for them to just pay a small fee and have free rein. Otherwise, once they get to one of your neighbors they will be close enough to get to yours without your ever knowing about it.

And if you catch them you'll be a millionaire instantly. I wouldn't sell my mineral rights for less than a million dollars.

[WildBill]

And if you catch them you'll be a millionaire instantly. I wouldn't sell my mineral rights for less than a million dollars.

On how much land?

[zachary]

Do not want to get into a big debate on here about it. I have owner a mineral purchasing company before, and am currently a geologist. Can help anyone with ?'s. If you have any specific questions PM me.