We have about 24 net mineral acres as part of a total family acreage of about 120. Parcels 3.7.19 and 3.7.19-1 in Cameron district, Marshall County. Coal was sold off long ago, currently have oil/ gas in play.
There has been some recent contact offering to buy outright and as we are all getting up in years, likely will sell rather than pursue a lease.
What is going rate range for outright sale? Hiw about lease? What should we know before signing a sales agreement and is it worth getting an attorney or advisor for 24 acres?
Jewel942, Welcome to the forum. I looked at your parcels 3-7-19 and 3-7-19.1 in the Cameron District and there are currently no active wells but that area should certainly be of interest for future development. We have interests south of you in the Liberty District from the Jameson well complex. With 24 net acres I think an attorney would be a good investment whether it involves a sale or a lease. If you have relatives that you wish to inherit your estate then a lease would serve better in the long run. We are seniors also and understand your position. As to a lease I would suggest between $4K-$5K per net acre for a signing bonus. As to royalty nothing less than 18% and a no cost lease. You can view several lease examples on the Marshall Co site http://129.71.117.225 select Book and Page in the drop down menu and enter 1271 in the book box and 24 in the page box for a good recent example. EQT and Expand Energy are active in your area. As to sale you would get your total settled sum more expeditiously. With a lease your signing bonus would be forthcoming after a few months and then it would be a significant wait of probably a year or more before any drilling and production begin. Once production commences royalty payments begin arriving after three months. An attorney can certainly help with these decisions. I will say that our lease of similar net acres has paid handsomely over the past eight years so it is a big decision to make. Check the DEP WV site for well mapping and production info. Wishing you good luck.
I am interested in a similar situation for wells in Marshall County. They are inherited through my Great Grandfather and Grandmother. We have enjoyed the royalties for awhile now from the leased wells. Recently we received letters wanting to purchase the mineral rights. One letter for an amount and the next letter a higher amount but with the caveat that those are not firm offers and have to contact a person for more information. In selling one would have to know the value of the rights at the time of inheritance to determine capital loss or capital gains. If value is not determined it would be assumed at zero and then would have to pay capital gains. I am currently in touch with an attorney to get my rights into my trust and plan on keeping the property as enjoy the royalties (even as they decline from time to time) as a bit of extra income to allow extras in life and retirement.
Marshall County, West Virginia, is located within one of the most productive wet-gas regions of the Marcellus Shale. Production in this area may generate royalties from natural gas, oil, and natural gas liquids (NGLs), including products such as ethane, propane, and butane. Marshall County is widely recognized as part of the liquids-rich portion of the Marcellus play, which can enhance the overall value of mineral ownership.
If you are considering selling all or a portion of your mineral interests, it is advisable to consult with a qualified petroleum advisor or mineral manager to evaluate your options. Depending on your financial goals, retaining ownership may be worth considering, particularly if commodity prices strengthen in the coming months. As always, any decision to sell or hold should be based on your individual circumstances, market conditions, and long-term objectives.