Has anybody had any dealings or knowledge of Potomac Mineral Group?
My sister received a Letter of Intent from Potomac Mineral Group to sign and return. It seems from the agreement wording that it gives Potomac 45 days to determine whether they want to purchase the minerals at the price stated, but they are under no obligation to purchase said rights at said price even if title search confirms her ownership. She also conveys the right for the grantee to assign the rights to another company or individual. This makes me think that Potomac is just gaining the legal right to shop the mineral rights around for a higher offer and then transfer them to the other party and make their profit on the difference and, If no higher offer is obtained, they can chose not to buy the rights at the price offered and My sister won't be able to entertain any other offers in this period of 45 days.
P.S. I have sold my identical rights recently, so I know the title search will show clear title.
Any comments? Thanks
Fred,
I've seen end buyers take options, but have also seen buyers use option agreements just to flip to the eventual end seller. I would push to have them provide you with a clear purchase and sale agreement, not an option agreement. Where are your minerals located?
45 banking days is about 2 months or 2.5 months considering holidays. I heard somewhere that the average is 18 banking days per month. If all you are losing by giving the option is time, I would say it was a personal choice. The problem is I think you may had better have a lawyer look at the option and I wouldn't enter into a contract from which I don't know if I will ever receive anything but I know going in that it will cost me. There is absolutely no reason they can't run title and make an offer, except they are flippers.
My signature on any document having to do with minerals has a monetary value. I have not had any new problems with my mineral interests since I adopted this theory.
Rights are in Glasscock County,Tx BLK 34 T4S Section 4. I actually sold my rights already, but my sister is interested in selling her rights. Most of the offers seem to be small company fishing expeditions. I have given her info to a larger company. Maybe she can get a real offer from them.
There is so much demand for good Glasscock County acreage right now that sellers don't need to beg buyers by signing anything but a Purchase and Sale agreement tying up the property for a time certain at a pre-agreed price and quantity limit. It doesn't take 2+ months to check title to one parcel unless the money to buy isn't in the bank. And don't get me started on the form of mineral deed that can be used.
I agree with your suspicions and Kennedy's philosophy. A signature on a deed is worth money in the bank. Why take the risk?
Gary L Hutchinson
Minerals Managment
RW, Thanks for your valuable input. Fred
Hi Fred -
David, RW and Gary have all given you good advice. I agree that is appears that they are canvasing an area picking up "bargains" to flip for a profit.
The offer wouldn't be from Buckhorne Resources out of Houston, would it? They made a lowball offer to a family I know of about 3 or 4 miles due West of your lands.
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Charles, Offer was from Potomac Mineral Group. I received several similar sized offers from 4 or 5 others, but not Buckhorne. Thanks for reply. Fred
The internet shows they are out of Harrisburg Pennsylvania. It is best to check in that area to see if they have a valid business license etc. Then also check to see if they have the same in ok. Also check the BBB and Yelp to see if any problems .
They are most likely a middleman like so many are.
I have been offered 300.00 per acre becuause im told that there is not that much activity in the area right now.
What have been your offer amts? Id like to see in comparison to the one I have had . It was 300.00 per acre.
Katherine, Thanks for the information. I am in negotiations for my rights at the moment, but my offers have been quite a bit more per acre.
Fred
With her location, Your sister doesn't need to give a "buyer" ALL of the control of her minerals. She may not even need to warrant title forever or question whether her title will be questioned in negotiations. The deal is too one sided if you ask me.
Would you play an hand of poker with a party that demanded you put up an ante but they wouldn't unless they knew they had a winning hand? Never.
Gary L Hutchinson
Minerals Managment