Hi
My siblings and I just recently inherited land with mineral rights in Baylor County TX. We have been offered a price to sell the land, but in that price the buyer wants all of the mineral rights. We would like to sell the surface but not sure about selling the minerals. The land is West of Bomarton, TX on the Baylor / Knox County line just South of US 277. I am pretty sure there has been some shallow wells drilled in that area but they depleted quickly.
Does anyone have any knowledge of any oil and gas potential for this area? (Past, Present or Future) Any help would be greatly appreciated.
Parcel #: 24736
Parcel #: 39238
Thank you,
Dee
DON'T E V E R S E L L your Mineral Rights!
Anything offered will be insulting. The more they offer, the better the chances they think they can bring in a new well. Unless taxes are prohibitive, hold on to your Rights.
The U.S. is the ONLY country on the planet that allows individuals to own mineral rights.
Dang Sherry, I was just going to offer her $300,000 per acre and you ruined it for her.
Seriously though, each person needs to evaluate their own situation to decide what is best for them. Absolute statements using the words EVER and NEVER can come back to haunt you.
Dee, I'm not familiar with that area. I would strongly suggest severing the mineral rights and not selling them with the surface. Then carefully evaluate what the mineral rights are worth and make a decision on selling them or holding. If you decide to sell, make sure you market the rights to several buyers. You might give the surface buyer first right of refusal +5% on purchasing the mineral rights for a 5 year period.
I recently sold surface rights to a tract and kept the mineral rights. The mineral rights were worth more per acre than the surface rights.
Depending on the acreage. If you plan on holding, you might want to put them in an entity like a mineral trust or LLC to keep them intact. The value of the whole could be worth more than the sum of the divided parts.
Hopefully someone familiar with the area will chime in.
It's ok Rick, don't listen to Sherry. You can still make the offer. Dee, when Rick makes the offer, pounce on it.
All kidding aside, you are unlikely to get such a no brainer offer. I believe Sherry was incorporating the fact that most mineral owners do not know the worth of their property and are more likely to make a bad bargain in selling than they might risk in leasing their property and having a dry well drilled which may dispel interest for a time but doesn't necessarily mean interest is gone forever. I get buy offers all the time, for little if any more than the lease offers I receive. I won't say never sell but I will say you need to put in even more research before a sale than you would before a lease and you would probably be better off hiring an expert, or selling to family if possible, for the same amount the sharp oil and gas professional offered.
Rick Howell said:
Dang Sherry, I was just going to offer her $300,000 per acre and you ruined it for her.
Seriously though, each person needs to evaluate their own situation to decide what is best for them. Absolute statements using the words EVER and NEVER can come back to haunt you.
Dee, I'm not familiar with that area. I would strongly suggest severing the mineral rights and not selling them with the surface. Then carefully evaluate what the mineral rights are worth and make a decision on selling them or holding. If you decide to sell, make sure you market the rights to several buyers. You might give the surface buyer first right of refusal +5% on purchasing the mineral rights for a 5 year period.
I recently sold surface rights to a tract and kept the mineral rights. The mineral rights were worth more per acre than the surface rights.
Depending on the acreage. If you plan on holding, you might want to put them in an entity like a mineral trust or LLC to keep them intact. The value of the whole could be worth more than the sum of the divided parts.
Hopefully someone familiar with the area will chime in.