This mineral right was inherited a few years ago but in the last 6 mo. I am getting tons of offers to buy the rights at one amount then a Mineral Co. sends the same lease isent with a double the price of the previous offer. I have no intention of selling. I do get a small monthly payment from Continental but am I missing something? Current lease expires in 2018 I believe. Just curious and know you all say never never sell. Thank you
Sally,
If you are being paid by Continental for the same ground you leased, your lease will not expire in 2018. It could be that the Mineral company is actually trying to buy your minerals rights and through what appears to be a lease bonus. This practice is being contested in the courts in an other state as fraud. Be careful!!
Due to the recent advancement of reserves being proved by horizontal drilling and permeability enhancement, the tried and true philosophy of holding minerals has been compromised. It is still up to the owner's long term perspective, heirs, etc. but because or the large reserves that horizontal drilling proves up, owners of royalties can receive very large cash payments now in exchange for larger cumulative payments over decades.
The responsible thing to do before you consider selling is to determine how much oil inventory you control. Use science not an auction to determine your fair market value.
Gary L Hutchinson
Minerals Managment