MC Mineral co. is interested in PURCHASING, not leasing, oil and gas minerals, whether leased or un-leased, producing or non-producing on my property
PLEASE HELP.. here is the story. I have been trying to lease my property for some time to Chesapeake and have been told by the landman that the property was under production. I come to find out today via documents sent from enervest that it is currently under an old lease signed back in 1968 by the original property owners for my section of the original farm. I was entitled to a portion of the well from the time I owned the property 12 years ago but they are not obligated to pay me until the day I sent the e-mail to them inquiring about a possible lease (about one month ago). They want from me all the deeds for all the past owners of the property from when the lease was originally signed. I am guessing that there are 4-7 different owners in this time period. That means I have to get all this info dug up and sent to them and then I am at their mercy, per enervest..." we may review each of the deeds for any reservation of the oil/gas/minerals prior to setting you up as a payee for your proportionate share of the royalty, if you are entitled." . With all this work I might end up with a couple bucks per month because the well is old and according the landman working for Chesapeake it was in production around 70 days if I remember correctly.
Main question is.. am I better off in this situation selling the rights to MC Mineral for the $2,500 an acre they are offering and call it a day. Seems that evervest can hold the lease to eternity therefore negating any monetary benefit I could possibly receive from any deep well drilling that may go on in the future.
Is $2,500 an acre a fair amount for all the rights and royalties? I hear that most folks around here get about $2,000 - $2,200 an acre for a 5 year lease with 15-18 percent royalty (hearsay).
This is a small parcel about 2 acres but my mother has about 10 acres and she is in a similar situation. She is just down the road from me. What would you do if you were in a similar situation as me and or my Mom, Thanks and God Bless.
What state? If you can go to the courthouse and look at (get copies of) these deeds you might find why they want to buy. They would not want to buy if there is nothing to buy so probably they want something you actually own. Same for your mother. Can you research her deed as well?
Ohio, They are leasing all the land in this area. Just need an answer to the particular questions posed. Thanks
Nancy Mosley said:
What state? If you can go to the courthouse and look at (get copies of) these deeds you might find why they want to buy. They would not want to buy if there is nothing to buy so probably they want something you actually own. Same for your mother. Can you research her deed as well?
$2,500/ac is not a bad offer on minerals that are held by an old well that can potentially produce for quite some time to come. Also, odds are that if a Marcellus well is drilled, they will do it within the terms of the original lease, which will continue to pay at a very low royalty. Therefore, for someone looking to buy the minerals, they are not going to pay a multiple of the going lease bonus rate because its easy to see that they may never get to actually lease it, only get future production.
Theoretically this well can be under production for eternity held by enervest. That is why in my situation it might be prudent to sell the rights. I was thinking that $4-5 K per acre was a more reasonable number. This is due to all lost future royalaties, possible future leases, and the loss of property value because of lack of oil and gas minerals. Thanks for all the responses so far. Take care, frank
I may have missed it if you mentioned it but don’t you know who MC Mineral is, it’s Chesapeake. They have several names they use here in Oklahoma to buy with but the main name they buy under is MC Mineral. They don’t care about any monies you may have in suspense and in fact bet that they are fine with you getting any monies in suspense, all that speculation is not at all why they made an offer. Now maybe it’s a little easier to figure out. Normally buyers like me can beat the offer MC Mineral (Chesapeake) makes but their offers are not too far off.
Thanks for all the responses. In order to be paid for royalties I am entitled to going back at least 12 years EnerVest wants me to suppy all the deeds going back to the date of the original lease dated in 1968. How do I go about finding all this info and is there anyone on this board who can do it for me for some money. Thanks
I think the section range thing is a Western US thing. I have a parcel ID # that is used as the legal description of the property. The parcel number is 090320022000, it is in green township, mahoning county, ohio. Thanks, Frank