Don't sell your minerals. If you lease for $650 and they don't drill within the 3 year term, if that is what you can negotiate, you can lease again. The next lease may be worth a lot more the next time around. If not, you got your $650 or more an acre and at some point in the future some company may decide they want to lease it from you for the deep rights (you need a horizontal and vertical Pugh clause in your lease).
My parents are deceased, but they would have never believed they would have seen the day leases went for $650 an acre. They were firm believers in keeping your minerals, no matter what, and their doing that has paid off for us children. Hopefully when the minerals are passed down to the grandchildren, it will be valuable for them too.
A man in my hometown was offered $50,000 for his minerals. He sold, the oil company came in and drilled a well, and it was the biggest producer in the area. There is no doubt the oil company had a very good idea before they bought the minerals. Instead of one million in royalties, the man who sold the minerals only got the $50,000 sales price.
Wes Luke said:
I don't think selling minerals instead of leasing is a good idea. I feel you are smart in holding out. Let their mouths water some before leasing. : ) I have offers for $1000.00 an acre to buy and have the property leased for $650.00. Wouldn't make sense to sell, IMHO. I have 54 minerals in CO myself, and am wishing they would get close enough to mine to lease them. Mine are mostly in Las Animas County. : )