Hi, new to the forum. I am posting on behalf of my grandfather (in his 90’s) who has inherited mineral rights in Section 35, Township 26 North, Range 57 East of Richland County Montana. He has recieved an offer for $3500 per acre for his mineral rights. However, it seems that most people lease with royalties instead of selling. I’d like some feedback on if this seems like a fair offer or if I should push instead for a lease with royalties. I have submitted to some places to get a appraisal but haven’t heard anything back yet and the company is really badgering him to sign the documents and sell.
Thank you!
Cannot comment on whether the price is far or not. Most offers to buy come before the bit and are generally low to see if someone will bite. Kraken Resources and others are leasing in the area. Kraken has quite a few permits to drill horizontal wells in that township and others close by.
If your grandfather needs funds for his care, then his decision might lead to a sale and asking for a higher purchase price. If he wants to get a bonus pricing for a lease now and pass on the the mineral acres and possible future wells to his heirs, then he may be better off leasing instead. Would advise that he speak with his accountant, estate planner and have an attorney review any sales offer or lease offer. Lease clauses are rarely in the mineral owner’s favor and need some edits.