We recently inherited 20 NMA acres in NW/4 Section 18 Township 4S, Range 36E. Our property is not leased. Does anyone have information on per acre selling prices and any activity going on in these areas?
Hi David:
We have mineral rights for Township 4 South, Range 35 East, Section 19: SE1/4. Appears we are fairly close. We made a visit to the location a couple of years ago and no activity except for windmills on the property. If you determine anything going on in the area, please let me know.
Thanks, Steve
David,
My grandfather left instructions to his kids, which might be good for you and your brother. He said: “You can sell the land, however you can never sell the minerals.”
Recently one cousin wanted to sell his minerals to make it easy to transfer his wealth at death. I said OK, I will set up to buy them, but I think you’re making a really big mistake. During this time, we were changing trustees as Bank of America said we put them at risk after 75 years of watchful trusteeship; they backed away and we had to move. The company that I moved the minerals to from Bank of America found a lease that BOA had done; however, as in their past, they closed the P.O. Box that the oil companies send checks to.
The new company found $700,000 in new oil production that BOA had let go; they transferred it for our family. After cousin’s $70,000 bonus arrived and then $7,500 a month started arriving, he decided he didn’t want to sell the minerals after all. I see you mentioned relinquishment land. Our family just made a lease for 558 acres for this type of contract. This is handled much like PSL (Public School Land).
You maintain the surface and then you share half of the minerals underground. However, this lease is one step better than the PSL. It states that the driller has to drill in the first year of the contract. Usually a driller gets a 3-year lease, no option from us. Then they drill in the last year of the lease. But this lease forces them to drill in the first year.
Hire an attorney to help you get a good price for your minerals, but you will see your discernment that they will be paying you only 10 months of payments.
This land ain’t growing any more land in West Texas.
The land we’re selling just outside Odessa that we can separate the minerals from is bringing about $26,000 an acre without minerals.
God bless, Chris