Hello, My relatives and I have been contacted with an offer to purchase Gas and Mineral rights for our Grandfathers property. The property was sold without the rights so apparently they are still ours. Each of us is inheriting less than an acre of a 60 acre farm. The property is in Greene County and the company reaching out is LG Minerals, LLC. I realize that we are each inheriting a very small portion. The offer seems reasonable based on preliminary research, but we are all wondering if we need to dig in more before accepting the offer, or with so many inheritors, does it make sense to do so? If the majority sell at initial offer, can the others negotiate at all? Also, is there any possibility of back tax liability? Any help is greatly appreciated!
Welcome to the forum.
At this moment in time, any offers to buy are probably at a standstill due to the drop in oil and gas prices. Theoretically, each of you can sell at will once your probate documents are filed in the county where the minerals are located. You have more power if you work together to try to get more, but I doubt deals will be done in near future or they will be very low.
There may be back tax liability which someone in PA can answer better. You may also need to get an estate value as of the date of death. If you sell, you may have capital gains taxes due. Probably not much at one acre…
Also consider why would someone offer to buy? Find out if you have royalties due to you already. Find out if there is future drilling planned (OK maybe a bit farther in the future.) Folks who offer think that they will make a profit (until this last week). Try to find out what they know.
Thanks so much for taking the time to reply!! The information was very helpful. Hope you and yours are safe and making it through!
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