I just signed a lease with Expand Energy for 41 acres in Joseph Walling Survey. I did use an O&G attorney, so I got much more than the initial offer. Now, I just received a life-changing offer from Vector Energy Partners. I obviously can’t accept it, since that would be a breach of contract with Expand. Since I have no heirs, selling makes sense at my age. Should I contact the Expand landman and offer to sell to Expand, and see if they can match Vector’s offer? Has anyone had a similar situation? How did you deal with it? Thanks much in advance.
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We have minerals in the same survey. Ours were leased by Drake Exploration who were representing Expand. In paragraph 13 of our lease, it stated that if we had an offer to purchase our minerals, we were required to notify Drake/Expand of the offer. We would provide them with the terms of the offer. They would then have 15 business days to either match the offer or decline to match the offer. If they declined to match the offer, we could sell to the other Party. It’s my understanding from talking with others that they typically decline to match the offer. Either way, if you want to sell your minerals, it appears you have the opportunity to do so. I would definitely work with an attorney to discuss this and review any Purchase Sale Agreement(PSA) prior to signing it.
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@lauren54 One correction: selling leased minerals is not a breach. The lease runs with the land, and the buyer takes your place under it, which is exactly why Vector wants it now. The only thing that can stop the sale is a clause like the one mellis described, so read your lease for a notice or matching right before you call anyone. And a life-changing number from one buyer means at least one more would pay it. Does your Expand lease have that paragraph?
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Thanks!
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Thankfully, it does say Expand has first right of refusal per se.
And, you’re right, I have now at least 3 companies vying for the sale. Feel like I’m in the proverbial catbird seat! 
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Before you are too quick to sell, having multiple offers implies that drilling may be coming soon. Ask Expand what their drilling timeline is and see if that fits into your timeline of getting an amount now versus waiting a year or so and getting royalties instead.
Also talk with your account or estate planning attorney as a life altering sale may trigger capital gains tax which you need to plan for. You also can choose to sell some, keep some or sell all or sell none.
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There are several mineral buyers using a Ft.Worth, Texas address trying to buy minerals in Expands Bossier/Haynesville deep gas play in the northern part of Houston County. Vector & Pelican are the two. I suspect they have inside information from within Expand. Use extreme caution.
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Ms. Barnes and the others are offering excellent advice. Move slowly and deliberately because, as you are now aware, you hold all of the cards.
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Thank you for your sage advice. I have been considering ways to at least split the payment between this year and the next to avoid onerous taxation.
Ive never hired a CPA for anything but a business, but I think it’s time to do so for personal taxes. Any suggestions/names would be most appreciated.
Thanks
If you have used a CPA for business before, then you can use them or another firm again. This is a real property issue and is business! They will be able to give you insight on your tax situation.