I only own a small percentage of the land and they are offering $150.00 per net mineral acre. Is this amount fair in Starr Co?
Whether to buy or lease, the $150 per nma is very low for Starr County.
Thank you for the reply. This helps.
Any idea what a fair price would be or what is the going rate?
Actually, I just checked the Nov 2017 U.S. Lease Price Report for Starr County. It reports $150/nma as the high lease bonus for Starr County. So if that was a lease bonus, and not an offer to buy your minerals, it was reasonable, although I think the lands are worth more than that. The price to buy should be at least 3 times the lease bonus. Again, Nick, was this an offer to lease or to buy your minerals.
Thank you Donald. This was an offer to lease. I have a small interest in the mineral rights. Someone else owns the land.
So then $150/acre with a 25% royalty interest would be reasonable in today's market. Since you have such a small interest I wouldn't quibble with it too much. South Texas, where Starr County is located, is a very good location long term for natural gas.
Hello Don. So, I have .078125 interest in just a little over 20 acres. It was my G Grandfather's land, then it came to my grandfather, he sold it but not the mineral rights. I'm wondering if, with such a small interest, would it be worth the expense to hire a lawyer? I'm only one of many who must sign this Oil and Gas lease. Can I still negotiate the lease if others have already signed?
Thanks Don. you've been a very big help.
The easy part is yes, normally, you can negotiate the lease even if others have signed. As with everything, there are exceptions. As long as you have executive rights, you can negotiate and sign the lease separately of all others. With your interest of approximately 1.5 net mineral acres, its probably not worth the expense of an attorney unless you can consolidate the interests of other parties.
I received an offer to lease my property from a company in Houston. I was informed there were test wells forthcoming at depths between 9-10 thousand feet and again at 14 thousand. Has anyone heard anything similar?
The following is a sponsored (paid) promotional notice:
If you own minerals in Texas and live in the Dallas area, please consider attending the NARO – Texas Town Hall Meeting in Dallas at the SMU Cox School of Business, Maguire Energy Institute, on November 14, 2018 from 6-8 p.m. We will cover four timely topics, and the cost is only to cover the food provided (plus a cash bar) at $20/person. The Mineral Rights Forum is also a sponsor of this event and it is open to non-NARO members, but attendance is limited to about 80 people, so please sign up today! . A link to the signup and information page is http://www.naro-us.org/event-3096540?CalendarViewType=1&SelectedDate=11/14/2018
Hope to see you in Dallas!
Wade Caldwell, Pres. NARO-Texas Chapter