I was approached by a leasing agent last week with a $100.00 signing bonus for acreage not defined in the lease in Monroe County, Ohio. . I called the agent and asked what is going on with the lease and he said that for submitting the lease to him I would receive the $100.00 plus $3500.00 per acre once the title was verified. I asked other things including who was to verify the heir ship and he said that was up to the heirs to get that done which means hiring a lawyer and perhaps having an abstract done. I went to my lawyer and he said cost could be upwards of $2500.00. Has anyone ran into such a situation in Monroe county Ohio??
Cline, I am moving this over to the Monroe County, Ohio area so it will be seen better.
Just be very cautious on offers like this. Sounds like someone is trolling without doing the title work necessary. I have received offers like this and when you read the fine print, you are giving away everything you own for that measly $100, agree to their arbitration clause, etc. Essentially theft, but if you sign the dotted line, you agreed to it.
Any lease should have the description of the acreage-exactly and a royalty amount listed. Never give someone a lease without receiving a cashier’s check in your hand. And, first offers are usually low. I don’t know what leasing rates are in OH, but 3/16ths may be low and higher amounts can be obtained. Any lease should be reviewed by an experienced oil and gas attorney if you have never leased before.
Thanks, that what I was thinking also. I will let everyone know how it works out.
I actually have a lot of experience in Ohio. If he’s with one if the larger companies they will do the heirship search. How many parcels does your acreage cover?
Have you any prior knowledge of owning acreage in Monroe. Due to the Ohio supreme court’s change in position on the dormant mineral act, many more heirs are being pleasantly surprised and find out they own acreage.
If you let me know your parcel number or where your acreage is located I can point you in the right direction. I know a landman that charges a very modest daily rate that can chain your title. And depending on the amount of acreage I have a few very good law firms that I can refer you to. Additionally I can give you some insight into potential and activity around your location.
Jeffery and All. The land agent did get back to me today and since I would not sign any contract they offered to buy my mineral rights. The offer in Monroe county was for $300.00. Acreage 0.066137. I just replied I would think about it. They did not give me the parcel number or what part of Monroe county it is in.
How did it work out?
It did not. I replied with a high price to buy the mineral rights and have heard nothing back. Once the land agent told me that all they needed in Ohio to drill was seventy five percent of the mineral owners to sign I figured the advantage was on there side and I will not do the title work for them.
I was contacted yesterday by an agent working for Equinor oil and gas about some inherited mineral right interest that I have in Monroe County. He said that I have 7 tracs of land with small percentages due to dilution but he’s sending me paperwork offering $100 per trac for a 5 year lease plus some percentage of royalties. I don’t know much about this and if this is a fair lease payment or not. I know that each of the 7 is a different amount of acreage ranging from .01 to 86 acres but all lease payments are the same and this seems kind of suspect to me. I also know that this is a 10% interest in the rights split over 250 people in the lineage but all are being offered the same lease payment per trac and this seems off too. I would think that my aunt would have a higher percentage of ownership than me but this doesn’t seem to be the case. I have tax map and parcel numbers as well as gross and net acreage information from my aunts paperwork but no royalty info yet. How can I find out what others in the area have been offered? Any information I can get would be appreciated
This is your other Aunt on your dad’s side. We were hoping to contact all parcenors to see what we can do to get more information. I contacted a competitor or Equinor to see what they would bid.
I am not signing until I get more information. You can contact me directly when you have time & I will reach out to you when I have more information.
Not from Ohio, but in OK, better to only lease for 3 years max with no option to extend. Make sure you lease each Tract on its own separate lease. Work with your relatives to get more power together. Also, understand those lease clauses as they may not all be in your favor and will hold you for possibly decades. You can negotiate.
Wow! Hey Cary I Did send you a Facebook message Since I didn’t have your number in my phone before I started looking around and found this site. I’ll see if I can get your number And call you.
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