Thank you, Gary, for your reply. The Red so far is, but with this rain, could bring trouble.
We have been made a good offer. For my siblings, they may consider taking the offer due to their age. I am considering the offer. We don't own very much of the minerals, as they were sold long time ago. Do you manage minerals for businesses or individuals? I am looking for resources to help me and my family to make an informed decision for our future. What resources do you suggest? I appreciate your assistance. Uta
Gary L. Hutchinson said:
Uta,
There are many buyers operating in your area of North Dakota and Montana and each has a different business plan. Some will offer to buy at fire sale prices from needy sellers, some want a piece of the long term production income anticipated from the Bakken, some just want to flip the ownership for a quick profit, some want to buy the long term production potential and participate in the drilling of the wells, and some just like the gamble of buying something and holding it for the pleasure of ownership in a highly touted commodity. The buyers all have one thing in common, they owe it to their backers to buy as cheaply as possible. The owner owes it to himself and his family to act like an educated seller by investigating the drilling an production activity in there area and the reasons behind the activity then combine that information with your personal desires, needs and expectations. In that way, you can set a price that is uniquely yours. Unless you expect to live forever, everybody has a price at which they would prefer the after tax income to the pride of ownership. Your price may be different than your heirs or beneficiaries. The key is to act like an informed buyer, educate yourself so you know what a fair price is to you. Buyers may not agree but that doesn't mean the minerals are not worth your price to you. Keep in mind that things change for buyers as well as sellers but knowledge is always power in getting what you want.
I hope the Red is staying within the banks this year. Now there is something nobody can do anything to control.
Gary L Hutchinson
Minerals Management