I just found out through a Landman with a Lease Offer that I own Oil, Gas & Mineral rights, 1/64th interest, to 20 acres in Loving Co. Location: SE/2 of the S/4 of the E/4 of Section 3, Block 2, of the Waco & Northwestern Railroad Company Survey, A2-2, Loving County, TX. My Bonus offer was initially for $2,000 per net acre, then raised it to $6,000, with a 1/5 Royalty. Is this a reasonable offer? Thanks for any help.
Pam
That is a very active area, with rapidly rising lease bonus prices. A 1/4 royalty would be more appropriate, and as for the bonus, you might consider reaching out to the forum sponsors to see what they're witnessing in that area.
http://marketplace.mineralrightsforum.com/ad-category/minerals-management-consultants/
Best of luck! That is a great area to own minerals!
Thank you!
No problem. I suspect you'll receive messages from other parties wanting to lease your minerals or buy your minerals. Just take your time, and make sure that you have a good lease form.
Pamela,
In another post on here you said you were offered:
My Bonus offer was initially for $2,000 per net acre ($29.77 for me) and then they raised it to $6,000 ($89.20 for me), with a 1/5 Royalty.
If that's the case, you would only own roughly .015 NMA (.015 x $6,000 = $90). You might ask for a 1/4 royalty, which you should probably be able to get. Otherwise, I wouldn't suspect you're going to have too much leverage here, so you're probably best off taking the deal and not wasting too much time on it.
Good luck!
Thank you.
Your acreage in 1/64 *20 = .3125 acres. At $6000/acre that would be $1875. Unless you own a fractional percentage of the 1/64.
Not sure how you got that, but $1875 is a little less than 1/3 of $6000. The deed says "undivided 1/64th interest". Offer says 0.014881 net mineral acres X $6,000=$89.29. There are several relatives involved, but I think I'm the only granddaughter. I split between heirs of my 2 deceased brothers.