I own a 8% of an undivided mineral interest in the Eagle Ford Shale covering 6224 acres. I sold my surface acreage(an undivided 25% of 2072 surface acres) years ago. and saved all minerals executive rights etc. In the last several years, the other 75% of the surface acreage was purchased by the individual who purchased my 25%. He was given an 8% mineral interest in the undivided 6224 acres when he bought the surface from my siblings. My siblings also gave him their executive rights. He has now come to me and wants to buy my executive rights and or minerals. Since I own an undivided interest in all 6224 acres of the mineral estate, would I have executive rights to all of the acres or only to the surface of the land I use to own? Is there any value to me selling him the executive rights I own and not the minerals? I thought a price for the executive rights should be comperable to what a one time bonus payment would be. His main concern is for the surface of his land and he wants to control any leases in order to preserve his surface. Any thoughts.
The second to last line of your post is what it’s all about. If you sell your executive rights you may never be allowed to lease your minerals. I would propose instead that if the surface owner wants to controll things you could lease your minerals to them, for an acceptable amount of time for an acceptable amount of money. I would reserve a high royalty if you went that route. I wouldn’t want to give up my executive right forever.
Don't ever sell executive rights, If the money is high enough and you are so inclined, you could convey limited rights of ingress and egress. That gives him some operational control, etc. You could even designate drillsites and access. But, for me, the money would have to be high enough.