I have been contacted by a land Iman regarding a lease for 20 acres I have inherited, offering 5,000 signup for 5 years and 15% profit, but it makes more sense for me to sell rather than lease. I have been researching, and am totally overwhelmed. Can anyone point me in the right direction? The lease I was sent also has the warrant clause, which I totally don't understand. Can any one tell me also, why the landman was so interested in knowing my marital status? I can see that this forum is providing a wonderful resource, and that many people are getting answers to difficult questions. Thanks
Cat Dancer,
You are being offered a little more than the recent state leases auctioned in the area. Permits for horizontal wells are bing issued 12-15 miles NE of your section and some small but prolific oil fields exist 6- 10 miles south and southeast. There is no production in your township right now but there are several plugged and abandoned oil wells that could be indicating the geologic potential of your area. It doesn't look like you will selling any near term production revenue if that is what you decide to do.
Hi Cat,
A couple things to consider here. First, I would not do a 5 year lease, I would request a 3 year lease instead. Second, based on your situation I can understand the desire to sell, but I would first figure out what the difference in price will be. Request a price to buy the minerals and also a price to lease them from the landman. If the difference isn't very large, you may consider leasing so that you can have some cash today, but keep the potential for future income for your heirs. Good luck.
Eric
They are interested in the marital status to see if a wife/or husband should be on the title. Every state has its own rules about ownership regarding private property, community property, joint tenancy, etc.