I was confronted by the oil and gas company to buy me out of my mineral rights. I have till the mid summer of next on my lease. now they are offering a decent amount but what I am curious about what is the going money per acre per month on royalties? I'm in Belmont county ohio. also is this a negotiation time where I come back to them with my offer? I know it is a gamble either way. really im looking for insight on what they should pay outright? and if anyone has gone down this road.
Bill - You could certainly go back to them with a counter-offer. Is it the company that leased you offering to buy you out now? They probably have some information about the quality of your acres and their potential that has incentivized them to purchase your minerals. That alone could mean good things for you even if you decide not to sell. As to the going rate for minerals, it varies widely by area and there isn't really a standard to go by, at least in my opinion. Some advise a multiple of lease bonus or monthly royalty but that can wildly undervalue your interest.
What do you consider a "decent amount?" Have you contacted other landowners around you to see if/how much they've been offered? It's like real estate. Know your area comps.
Good luck
Pat
There is no deadline for signing an O&G lease. In fact, you don't even have to sign their onerous leases or sell your minerals. If you're so inclined to sign, then negotiate until you get what you want. Everything is negotiable!
I negotiated on an O&G lease for almost a year until I got (almost) all what I wanted. But decided not to sign as I didn't want strangers 'rutting" up my nice land, damaging my beautiful tree lines, damaging new fence line, and too much more to list here. I live 150 miles away and couldn't be there 24-7 to see what liberties they may be taking with my land. In my opinion, absentee owners are no good for rent property and when contractors are on your land. Been there!
Good luck,
Pat
it was 10k an acre. it was the company doing the drilling in my area. I only own 3.194 acres and according to the gas map there is none if very little under me. I'm not sure how accurate those gas pocket maps are.