Does this offer seem right

General Mineral Rights Discussion
#1

Hello, my first time posting on this forum.

About a month ago, I was informed that I and my cousins had inherited some mineral rights in Tyler county WV. It is on 3 separate parcels, comprising 28, 74, and 56 acres.

Since then, I've been given a packet of forms by a Lands man out of West Virginia. These are offers of 100 dollars per parcel (300 dollars total) plus possible future royalties.

My question is, is this a standard offer. How do I go about finding out how much these claims might be worth. I don't know anything about the process, but 300 dollars seems like nothing, in order to get access to drilling on 150+ acres. Can anyone point me in the right direction on this, I don't want to accept an offer without more information. Thank you

#2

Yes, look under the Groups heading in this site and find your county. You can get info and start a discussion there with people who are more familiar with your area. Also, go out and find some of the older people who live there and just sit and listen. They've been through it all before and now and have insights that will help. Sooner or later you can find a land person or attorney that you trust but that will take a while. In the meantime, talk to people who live there. Good luck.

And it does sound like a bad offer.

#3

Jim,

I don't know anything about West Virginia minerals but there are groups on this site for several counties in WV including Tyler. I would start reading there and get a feel for what other people in your area are experiencing. You are already ahead of the game by asking questions and doing your homework, as opposed to signing whatever comes in the mail and then finding out you got cheated. Take your time and learn as much as you can before you sign anything! You need to find out if you have clear title to the property, whether the mineral rights have been probated, etc. You should be aware that the landman/landmen will send offers to your cousins too, hoping that one of them will jump at the money so the rest of your family will feel obligated to sign as well. 100 dollars per parcel is peanuts, so again I'd say go slow and find out what the going rate is in your area and whether there are any existing or soon to be spudded wells involved. Also you need to learn about lease terms, deductions from royalties and a ton of other stuff if you want to maximize the return on your asset. There is a lot to learn but people here are helpful. Good luck to you.

Dogbert

#4

Tyler County West Virginia group

Even if you have a tiny interest in each tract, $100 per tract is too low.

Start something there and you will get some help and suggestions.

#5

Jim,

Welcome to the forum.

The offer you received is extremely low, well below the norm.

To get a better appreciation, you need to determine the Net Mineral Acres involved; if you own 1/4 of the 28 acre parcel, it would be 7 Net Mineral Acres. In Tyler County, 3,000.00 - 5,000.00 / NMA is not unheard of, thus your 7 NMA would be valued at $21,000.00 - $35,000.00.

#6

"Sooner or later you can find a land person or attorney that you trust but that will take a while."

Don't give up. There are a few out there! It just may take some time.

Good luck,

Pat