I have had several offers to buy mineral rights that are currently on a lease. Would seem to be a conflict, can one even do that?
I don’t understand why you would feel it might be a conflict to buy leased mineral? It is not much different than selling a building that has a current tenant. The new owner is still held by the terms of any existing leases.
OK, I guess one would need to be sure they disclosed the lease to the buyer.to avoid a nasty surprise.
Absolutely! Chances are that if they are cold calling you trying to buy it, they know as much or more about than you do. You still want to make sure you inform them of everything you know and document as such. Preferably in the deed itself. And prevent them from coming back on you for sloppy title work on their part.
It is usually a good idea to spend a couple hours of attorney fees to draft or review the instrument of conveyance.
If you are getting spontaneous letters in the mail, there is probably someone out there willing to pay even more. It probably also means that there is development planned on these lands. You’re best bet is to not sell or at least hold out for a better deal.
I have no intention to sell.
Good! The value of your mineral estate is at least 10X what you have been offered. Never jump on an early offer unless you are in dire straights. EX. I have mineral interests in Glasscock Co., Texas for which I have been offered over the years between 650K to 125K as the price of oil changes from the same people. I worked 55 years in the industry, the last 10 in all these shale plays. I know the value placed on minerals throughout the Permian basin. The offers increased (value and frequency) last quarter when 6 horizontal wells were permitted from the RRC. If you own it, they will come. It’s like vultures to a carcass. I keep a list of the companies that offer to buy and send them my workup based on hard data. They are never heard from again. Remember, its yours, they want it so be a tough trader. I recommend that you never sell.