Home Buying in 76108>Question Details

Rmata, Home Buyer in Arlington, TX

how do i no if i am getting ripped off when some offers to by my mineral rights?

Asked by Rmata, Arlington, TX Wed Sep 19, 2012

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John Straub’s answer
Good evening
Great question, the only way I would think of that you would sell your mineral rights would be if you were selling the property, gas/oil companies generally lease mineral rights. When you are looking to sell property the value of the mineral rights is dependant on the size of the property, the current use of the mineral rights, but most importantly the current market for your mineral rights. Are you currently selling a home or property? Do you have a lease on the mineral rights? How large is the land we are talking about?

Right now new drilling in the Barnett Shale is almost nonexistant, Chesapeake Energy, one of the largest drillers in the Barnett Shale said earlier this year they would only have between 1-3 active rigs on the shale by years end.

I recommend focusing your efforts on negotiating the best price possible for the sale of the property that you own. Mineral Rights do of course play a part in your pricing strategy but some buyers have very little concern for these rights so do not over focus on them. If you would like to speak directly about selling your property or would like a more detailed opinion please contact me directly.

John Straub
Keller Williams Realty
817-729-4281
john@dfwfamilyrealty.com

http://www.dfwfamilyrealty.info
1 vote Thank Flag Link Wed Sep 19, 2012
All units are held by production and until the US starts using more natural gas, the royalties will be low if you do not own a large tract of land. As far as grouping together to demand a higher price, those days are over due to the fact that all the acreage that was leased is either already unitized and permitted by the Texas RRC. If you feel it is not a good deal, then don't go forward with the sale of your mineral rights, if you feel it is a fair market offer, then make a decision. There are other companies besides the one that approached you that purchase mineral and royalty interests. You should google a few and submit your info to them. Make it a bidding war against the companies. Whoever pays more and treats you best is the company I would deal with.

Regards,

O Fernandez
0 votes Thank Flag Link Wed Sep 19, 2012
Are you receiving royalties yet? There is a fair market value equation for calculating future royalties. You can google it.
0 votes Thank Flag Link Wed Sep 19, 2012
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Flag Sun Sep 30, 2012
Think about just leasing, not selling.
Also if a company is thinking about drilling in your area, then all homeowners in your area are in a similar position.
Many neighborhoods banded together to negotiate as one big group. This gave them the power to hire an attorney and negotiate a higher price for lease rights....not outright sales.

Something to think about.

Did you get an offer just to buy the mineral rights? That seems a little weird in today's environment. Possible, but strange to me. Drilling activity is off around here.
0 votes Thank Flag Link Wed Sep 19, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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