We own a very small parcel’s mineral rights in Cameron District. We recently received an inquiry as to our interest in leasing said rights. Was curious what the going rate is for signing bonus and monthly royalties?
There are a lot of leases being signed in Marshall Co. I would suggest a minimum of $4,000-4,500 per net acre and a royalty rate of 18%. Southwestern Energy and Tug Hill are the primary operating companies involved. You can scroll thru the records at the marshallcountywv.org site on the County Clerk page by book and page to see memorandums of leases filed. They will not show the bonus amounts or royalty percents but you can see where the leases are relative to your parcels which will be listed. I’d suggest starting around Book 1000 and page 1. A bit tedious but lots of info to go thru. They are currently on Book 1106 in their filings. Then check the Marshall County GIS site to track parcels. If you want to share your parcel number I would be happy to search for leases in that area. My leases are south of you in the Liberty District. I did a quick check and there are leases in the Cameron District in Book 1106 and pages 263, 266, 271 and 368 if you want to check and compare parcel numbers. Good luck.
I urge you to consider approaching a professional to help with other provisions in the lease. While those two figures are important, there are other ones that can mean just as much to the bottom line of money received.
Dome has some great information in the reply.
Good luck! Hopes this helps.
Hi! I Was wondering if you could give me some advice. My husband inherited a few small acres in Marshall County, West Virginia, Liberty District, many years ago, which he still owns. We held onto them mainly for sentimental reasons. Recently a company contacted him wanting to buy them. We have no idea how much they are worth and really have no knowledge about Mineral Rights. How can we find out what the going rate per acre would be for this area? We are really confused. Any help you could give us would be so appreciated! Thank you!
Welcome to the forum. Please check my earlier posts regarding Marshall Co. There is quite a bit of activity in the Liberty District with numerous leases being negotiated and signed. I would advise against selling your Mineral Rights unless you really need the money right now. It also depends on where your parcels are located. You can check your parcel locations on the Marshall County GIS link and then check the dep.wv.gov site on their Database and Map link to compare what activity is on or near your parcels. Companies often offer to purchase MR’s because they see the potential profit if and when they are developed. If a production company approaches offering a lease, then the numbers in my previous posts are applicable. Professionals can certainly assist if you decide to lease or sell. If you want to share the parcel numbers I would be happy to check activity around you. Good luck.
Hi Dome, thank you for your kind offer of help and advice. I think you are right, we need a professional to guide us through this. We are so confused, because we are so new to this. I really do enjoy your posts and will continue to read, maybe you will have some updates and hopefully we will have settled this before too long. Again thank you for taking the time to respond. Take care!
lisaevans, Getting a professional is a wise decision particularly when you are new to the world of MR. It was the same for us when we got a phone call from a landman in 2012 thinking it was a hoax. Fortunately I had the council of friends in the industry with excellent advice regarding MR. If your acres in the Liberty District are where they are producing wet gas, then you have the benefit of potential additional income from natural gas liquids NGL’s in your royalties. An oil & gas attorney with local knowledge of WV and Marshall Co will know the prospects. All the best on your adventure.
Have a professional in the industry review the lease and it may help to contact the landman and ask him these questions. Is your interest being developed in a unit? If so, ask to see a map of the said proposed unit. Ask to see the mineral ownership report and how you received the mineral interest. You can negotiate a lot more if you’re fully in the unit and/or under a well bore leg. This helps with being able to ask for more bonus money, Pugh clause, Depth clause, hold Harmless clause, higher royalty %, non post production clause and getting the general warranty clause out of the lease. The companies will negotiate with you.
Dome is correct, there is a lot signing on for $4000 to $6000 per nma. a lot of leases I’ve seen in the courthouse are anywhere from 15% to 18% cost free and net. You always want a gross at the well head lease. Never sign away the right to have the E&P company take deductions on post productions.
I hope this helps?
We had a lease with Chevron in the Cameron District of Marshall County. My understanding is that EQT bought Chevron’s Mineral Rights there. Parcel #3-14-14. Does anyone know if there is activity around that area? Some of the family leases expired in March 2021 and others will expire in July. We have been approached by other companies to lease and/or buy our rights. Does EQT lease in that area or is it just Tug Hill and Southwestern Energy as listed in one of the prior comments. I have reached out to EQT and I am not getting anywhere. Any help or suggestions on this would be appreciated. Thank you.
Yes, EQT acquired all Chevron assets. After looking at the www.Tagus.dep.wv.gov map, it doesn’t look like there is any activity there at this time. It sits right outside Cameron off loudenville road. West of your parcel Tug Hill has a unit permitted called the Hudson S 3HM unit. SWN has some older units towards the south.
I hope this helps answer your questions.
Hello Leanne-Longo, As Nick_C mentioned there does not appear to be current activity close to you, however I found leases on parcels 3-14-2 & 3 close by with TH (Tug Hill) dated in 2018. The lease is in Book 958 Page 106 in the Marshall County Clerk’s Office site. Will keep an eye out for any new leases or permits in your area.
Thank you!! I appreciate the help.
Yes this does help, thank you so much.
Found several more leases recorded today on the county website. The parcels are a little NE of you and one directly a short distance east of you. All we’re with TH Tughill.