I know nothing about the natural gas business! I have been slowly read about it since I learned that we own the mineral right to 25 acres in AR. We have been approached to lease 5 of the acres. They have offered $1200 and acre and 20%. Is this a good deal?
Reading the articles on Mineralweb makes it sound like I need an accountant and an attorney both of which cost money. My question, is it worth the cost? I have used the calculators and have come up with a wide range of totals from not so much to very large sums. Is this something worth putting my time and money into?
That sounds like a good offer, but then again, I don’t know what other people are gettting in the area. I don’t know why you would need an accountant? Perhaps if you are ultra wealthy, and will be pulling in a ton of cash in royalties, you may want to find a way to shelter as much of that income as possible. An attorney would be good to review the lease before you sign it, but you can lay out the parameters, and just spend a few hundered dollars if that is what you want.
Thanks Lisa,
I will have an attorney look it over. I was wondering about the accountant for the taxes. Different states different laws.
Lisa said:
That sounds like a good offer, but then again, I don’t know what other people are gettting in the area. I don’t know why you would need an accountant? Perhaps if you are ultra wealthy, and will be pulling in a ton of cash in royalties, you may want to find a way to shelter as much of that income as possible. An attorney would be good to review the lease before you sign it, but you can lay out the parameters, and just spend a few hundered dollars if that is what you want.
If that is your first offer, don’t feel like you have to take it–you probably shouldn’t yet. More than likely you could do better (they probably aren’t going to give their top offer from the outset). Have you searched the forum under Arkansas, or your county name to find out what other people are getting, and what other companies are operating? You want to have competing offers if at all possible.
You might want an accountant to do your taxes at the end of year, but I can’t think that having an oil or gas lease would cost more than a hundred or two more than doing your standard return. But, I could be wrong.
Sandy Goetz said:
Thanks Lisa,
I will have an attorney look it over. I was wondering about the accountant for the taxes. Different states different laws.
Lisa said:
That sounds like a good offer, but then again, I don’t know what other people are gettting in the area. I don’t know why you would need an accountant? Perhaps if you are ultra wealthy, and will be pulling in a ton of cash in royalties, you may want to find a way to shelter as much of that income as possible. An attorney would be good to review the lease before you sign it, but you can lay out the parameters, and just spend a few hundered dollars if that is what you want.