I have received a lease offer for mineral rights I and my family own in Albany County Wyoming. It seems low. What should I be looking at in terms of value and should we be asking for lease and production revenue?
Ted, Thanks for the response. We have already leased and they are already drilling. It would be a good thing if they hit something besides water. The last two times they drilled on the place, we got some really good water wells. Jim
Ted Preston said:
James,
I’m an attorney in Laramie. I’d be happy to talk with you about the offer if you have not leased yet.
Ted
Ted, I own mineral rights in Goshen county, WO. What is the going rate for a mineral lease per acre? and what percentage rate should I expect on royalties?
Ted Preston said:
James,
I’m an attorney in Laramie. I’d be happy to talk with you about the offer if you have not leased yet.
Ted
Becky,
How many acres do you own and where are they located in Goshen? Value depends on location, location, location same as real estate. Send me the legal description and maybe I can help you with some local prices.
Becky Smith said:
Ted, I own mineral rights in Goshen county, WO. What is the going rate for a mineral lease per acre? and what percentage rate should I expect on royalties?
Ted Preston said:James,
I’m an attorney in Laramie. I’d be happy to talk with you about the offer if you have not leased yet.
Ted
Thank you Bryan, My brothere and I own 480 acres just outside of Lingle. We do not own the land. An oil company drilled for oil in the 1950’s and capped it off. So we know the oil is there. My grandparents kept the mineral rights when they sold the land. We have not signed any lease yet, but a broker is hot on our tail.
Bryan said:
Becky,
How many acres do you own and where are they located in Goshen? Value depends on location, location, location same as real estate. Send me the legal description and maybe I can help you with some local prices.
Becky Smith said:Ted, I own mineral rights in Goshen county, WO. What is the going rate for a mineral lease per acre? and what percentage rate should I expect on royalties?
Ted Preston said:James,
I’m an attorney in Laramie. I’d be happy to talk with you about the offer if you have not leased yet.
Ted
Becky,
Lingle lies in the middle of T25N-63W and T25N-62W. I need your section, township and range to give you an informed answer. Minerals in 25N-62W would be worth more. Again, it is like buying a house. A neighborhood 4 blocks away may be vastly more expensive than the other. Same goes for minerals although not in blocks but sometimes as little as one mile makes a huge difference. Look at it this way for example; Say you live west of I-25 and I live East of I-25 across the Interstate from each other. They drill a great well on me and only offer you 10.00/acre. On the surfice that seems unfair. But what if a fault runs up I-25 and your land is on the down thrown block and therefore is unlike to have oil trapped? Probably could not even get a lease or any company to drill on your side of I-25. Email me the exact section, township and range and I will provide you a reference range in that area and some other information you should know,.
Becky Smith said:
Thank you Bryan,
My brothere and I own 480 acres just outside of Lingle. We do not own the land. An oil company drilled for oil in the 1950’s and capped it off. So we know the oil is there. My grandparents kept the mineral rights when they sold the land. We have not signed any lease yet, but a broker is hot on our tail.
Bryan said:Becky,
How many acres do you own and where are they located in Goshen? Value depends on location, location, location same as real estate. Send me the legal description and maybe I can help you with some local prices.
Becky Smith said:Ted, I own mineral rights in Goshen county, WO. What is the going rate for a mineral lease per acre? and what percentage rate should I expect on royalties?
Ted Preston said:James,
I’m an attorney in Laramie. I’d be happy to talk with you about the offer if you have not leased yet.
Ted
A few pointers for mineral owners to consider, I see many people asking lawyers values of minerla rights. Some attroneys in certain areas who are heavily involved in oil and gas legal work may be familiar with going rates but they will not know specific areas and the oil or gas potential in the detail you need. If you want ot know the value of your minerlas you should contact a consulting geologist who works that area as they will know your land values and more importantly the likelihood of whether it contains oil or gas and how much of it. They are not going to tell you this for free and you should not expect them too. Instead ask them what they would charge you to look at your minerals, Probably a few thousand dollars or even less if they have it already mapped which they likely do if they are familiar with your area. Geologists and petroleum engineers are the only ones qualified to tell you the oil or gas potential of your minerals and therefore potential values.
Attorneys are great for reviewing your lease and telling you what it all means but most oil companies use standard AAPL lease forms which are used nationwide such as “Piid Up”.or producers 88 which you can review at the AAPL (American Ass. of Petroleum Landmen website) You may want to add certain clauses and of course always strike warranting title clauses to the minerals.
Bryan, Thank you again for the information. You seem to really know your stuff. Are you in this business in some arena? I must admit I am ignorant relating to this new realm of business.My grandmother was a much wiser business woman than myself. Anyway, the legal description is: Township 25 North Range West 6th PM. Section 32E2 Section 33SW 1/4. What can you tell me? Becky
Bryan said:
Becky,
Lingle lies in the middle of T25N-63W and T25N-62W. I need your section, township and range to give you an informed answer. Minerals in 25N-62W would be worth more. Again, it is like buying a house. A neighborhood 4 blocks away may be vastly more expensive than the other. Same goes for minerals although not in blocks but sometimes as little as one mile makes a huge difference. Look at it this way for example; Say you live west of I-25 and I live East of I-25 across the Interstate from each other. They drill a great well on me and only offer you 10.00/acre. On the surfice that seems unfair. But what if a fault runs up I-25 and your land is on the down thrown block and therefore is unlike to have oil trapped? Probably could not even get a lease or any company to drill on your side of I-25. Email me the exact section, township and range and I will provide you a reference range in that area and some other information you should know,.
Becky Smith said:Thank you Bryan,
My brothere and I own 480 acres just outside of Lingle. We do not own the land. An oil company drilled for oil in the 1950’s and capped it off. So we know the oil is there. My grandparents kept the mineral rights when they sold the land. We have not signed any lease yet, but a broker is hot on our tail.
Bryan said:Becky,
How many acres do you own and where are they located in Goshen? Value depends on location, location, location same as real estate. Send me the legal description and maybe I can help you with some local prices.
Becky Smith said:Ted, I own mineral rights in Goshen county, WO. What is the going rate for a mineral lease per acre? and what percentage rate should I expect on royalties?
Ted Preston said:James,
I’m an attorney in Laramie. I’d be happy to talk with you about the offer if you have not leased yet.
Ted
Very interesting. I am learning more and more by the hour. The legal description is: Township 25 North Range West 6 PM Section 32E2 Section 33 SW 1/4. 480 acres. No lease has been signed yet. Thank you very much for the information. I am really getting an education. Becky
Ted Preston said:
Becky,
I’m intimately familiar with the lease bonuses and terms being offered in Goshen County, and I’d be happy to share what I know. As Bryan correctly noted, location is the key, so I can’t even begin to address possible lease rates and terms without knowing precisely where your mineral rights lie in the county. It will make an enormous difference in the value depending on which direction you go from Lingle.
Generally, south and west of Lingle bring higher bonuses, and east and north of Lingle lower, but I can give you much more localized $ numbers if I know your legal description, and I can also tell you which companies are leasing in your area. A lot depends on the fracture systems that result from geologic forces. The depth to the Niobrara formation also seems to be playing a part in the bonus offers we are seeing lately, so plotting your land on a geologic map will be helpful. The formation gets shallower as you move north and east from Lingle, deeper to the west and south. The deeper areas also seem to have to more extensive fracture systems, but the fracturing is localized, so generalities don’t work very well. Feel free to call me at 307-742-7896 (after Monday, as I’m traveling today)
Becky,
Call me at 307.320.5350 so we can discuss. Bryan
I recently got a lease agreement and would like for you to look over it and advise me. Could you do that for me if yes please tell me where to fax the agreement and how much it would cost to have look at the lease. Thanks Jonette
I am an oil and gas landman working in Wy. I would be happy to look at the minerals you have for lease and if we are interested make a fair offer.
Thanks
I have already leased it.
David Roberson said:
I am an oil and gas landman working in Wy. I would be happy to look at the minerals you have for lease and if we are interested make a fair offer.
Thanks