Does anyone have any information on what the going rate per acre the mineral rights are being leased in Michigan. We have a meeting with a gentleman on Sunday and we are very leary about it. Anyone have any questions we should ask?
We have property in Bear Lake Township and Paxton has offered us $1,500 per acre for mineral rights. I can see by the date on your note that you’ve had your meeting. What did you settle on?
I just got a offer in kalkaska for 1750 a acre for a 5 year lease plus royalties … any one else out there getting offeers like that?
Lore Watt Corradino said:
We have property in Bear Lake Township and Paxton has offered us $1,500 per acre for mineral rights.
I can see by the date on your note that you’ve had your meeting. What did you settle on?
Jeff, I would like to see a copy of your contract. Let me know and I’ll send you my home address.
What company did you sign with? What part of Kalkaska County is your property/closest city?
Lore
Who’s the Co that’s offering you the lease? I may want to contact them to see if they are interested in our property in Kalkaska County.
Jeff, who’s the company that offered you the lease in Kalkaska? I’d like to see if they are interested in our property too.
We just received a phone call from Paxton claiming that the lease values are dropping due to lack of interest on the part of the gas companies. They sent us (via e-mail) a copy of the lease agreement stating the lease value at $1,500 per acre. And if we get our signatures notarized today, and send the contract back, they will honor the $1,500/acre offer.
Has anyone else been contacted?
We also are being rushed to get our stuff in and heard the same song and dance. We are getting 1400 per acre and have sent our paperwork in…
Lore Watt Corradino said:
We just received a phone call from Paxton claiming that the lease values are dropping due to lack of interest on the part of the gas companies. They sent us (via e-mail) a copy of the lease agreement stating the lease value at $1,500 per acre. And if we get our signatures notarized today, and send the contract back, they will honor the $1,500/acre offer.
Has anyone else been contacted?
I havnt recieved my paper work yet and I have called my guy a couple of times since then. Not sure whats going on…
Jeff, Thanks for writing. We mailed our paperwork in on Monday (July 19). We received a call on Monday morning letting us know that many (some) of the oil companies have backed out of their agreements with the agents (those who are contacting us and arranging for the leases). Eventhough contracts were signed and checks were mailed, the contracts/checks are not being honored. Our contact said they would honor the contract ($1,500/acre) but we needed to do it now. I sent the docuemnts to them buy certified/return receipt requested mail.
I think all is in flux and that their is a type of herding mentality going on creating a mad rush to a resource. Once the dust settled, I’m sure sober minds took over the helm.
I don’t know if by signing the contracts my husband and I have done the best thing for the region, the ecology/environment, the water in the Manistee, the region’s economic stability, and job creation. However, we were fearful that if we did not sign, the oil companies would force us into a “pool” and we would lose control of our mineral rights as well as the property. Time will tell . . . things will unfold.
I am so frustrated! What is going on in this County? Our contract is in and signed but now we have to work on paying off our land contract. So, I do that and then the leasing Co can pull out? That would be bad.
Sorry thisis happening to you. I don’t know much about land contracts, but I assume that util you own the property you are not able to lease the mineral rights. You might want to contact the state and ask if you had a mortgage with a bank or mortgage company would you have the ability to lease the mineral rights. There might be a difference in ownership between land contract and mortgage. But I’m not sure. On a positive note, mortgage rates are very low today. You might get a better deal with a bank than the one you have on the land contract.
My husband just phoned. He just got off the phone with Barbara Bowkner (company name unknown). She said that the oil companies are pulling out of Kalkaska County and focusing on Missasauke (can’t spell that) and Roscommon Counties.
I hope this information helps.
Where is Paxton located or do you have a phone number or name that I can contact? I have 40 acres in Gladwin and I was offered $150.00/acre.
Thanks for any help.
Lore Watt Corradino said:
We have property in Bear Lake Township and Paxton has offered us $1,500 per acre for mineral rights.
I can see by the date on your note that you’ve had your meeting. What did you settle on?
I have forty acres in White Cloud and was offered 50 dollars per acre. Sounds pretty low to me. I am told that some of my neighbors have signed. I am waiting, I guess I didn’t have the money before he contacted me so I won’t miss it if I don’t get it.
I recently inherited my fathers mineral rights and need to put a value on the property so a probate inventory can be done. I have properties in Allegan, Isabella, Montcalm, Macosta, Muskegon, Midland, Osceola, and Vanburan Counties. Another person on this forum told me a general rule of thumb for putting a value on the mineral rights is twice the going lease rate for that area. What I don’t know is how much land is being leased for in the above counties. If anyone has an idea would you please let me know?