Creating an LLC to negotiate an oil lease

PLEASE ADVISE… I’m just getting started here… Found out 2 months ago when I was contacted by a landman that a 1941 deed signed by 13 relatives (all but one are deceased) shows clearly our family owns the mineral rights to about 50 acres on the Marcellus Shale in West Virginia. Rather than allowing the Energy company to contact each of us individually, I’m wondering, does it make sense to form an LLC with each of the 13 heirs as co-owners and then updating and transferring the deed to the LLC. Then contact the energy company and negotiate. Is that the way to do it?

While there may be some benefits in combining into an LLC, keep in mind that this may be a bit like herding cats and create unforeseen administrative, tax and regulatory headaches. This might not be the best idea for you or your family. The upside is that your bargaining power might increase.

Visit with a WV attorney about this.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

Again Winblad offers great advice.