I'm one of four daughters who inherited 80 acres of Mineral Rights in Pawnee County, Ks. At first someone from Chesapeake said they were interesting in leasing them. Then they said no, they would only be looking at their 'tier 1' locations and ours was considered tier 2.
About a year later I asked Chespeake if they were interested and they said no. We really want to sell our mineral rights as we don't live in Kansas.
Questions:
1. How (and who) should we contact to get an (honest) appraisal of our mineral rights?
2. How should we go about selling them? Do you put them on a real estate website like a house?
3. The land owners are still there - do I have to notify them that these mineral rights were sold - if we get lucky enough to sell them?
Thanks for any information..
Ms. Gallagher, if you want to sell those acres I'd like to see you make something from them. I do not recommend hiring someone to appraise the acres because a professional appraisal may be fairly high in cost. If you absolutely can't put a price on the acres I would try to hire a mineral manager to try and sell them for you. In my opinion, what they charge you for would come with alot of value added that just an appraisal would not give.
I do believe that you could come to a reasonable value yourself, by comparing your last lease offer if there was one, joining the Pawnee county group and gleaning what information you can from there, reading from post 1 because any information is better than none. Do a google search. Possibly even call a realtor in the area and see if there is any gossip. If you want you can tell what you found and I will tell you how much "weight" I would assign to what you gathered. Hopefully someone else will chime in also.
If your discussions with Chesapeake were from 2 years ago I wouldn't worry about it. CHK was already in trouble and was looking for something that would make enough money to bail them out and not just a profit. As for being tier 2, ten years ago the Bakken wasn't even a tier, it was sort of an experiment, that generally didn't pay off. Compared to that tier 2 sounds like red hot property.
You may be able to list your property online. You can find listings near the bottom of the home page here if you click on the home button at the top left of the page. There are also online mineral auctions, and you can set a reserve price, but the point is to sell, so try to figure a reasonable price. If you auction I believe you could start a little high with the price decending next time if it didn't sell, but these are probably lengthy auctions allowing buyers to investigate and if they buy they have to check title before you are paid. If you are saving on the appraisers cut, you can probably afford to be a little more reasonable. If you never get a decent offer, I wouldn't sell.
Here are a couple online sites you can look at and they could help you on pricing them.
http://mineralownermart.com
http://mineralpost.com
Hi Mineral Joe,
Thanks, these sites area really interesting. Have you ever, or have you known anyone who used these sites?
Mineral Joe said:
Thank you so much for your advice.. we're in information gathering mode so this is very helpful.
r w kennedy said:
Ms. Gallagher, if you want to sell those acres I'd like to see you make something from them. I do not recommend hiring someone to appraise the acres because a professional appraisal may be fairly high in cost. If you absolutely can't put a price on the acres I would try to hire a mineral manager to try and sell them for you. In my opinion, what they charge you for would come with alot of value added that just an appraisal would not give.
I do believe that you could come to a reasonable value yourself, by comparing your last lease offer if there was one, joining the Pawnee county group and gleaning what information you can from there, reading from post 1 because any information is better than none. Do a google search. Possibly even call a realtor in the area and see if there is any gossip. If you want you can tell what you found and I will tell you how much "weight" I would assign to what you gathered. Hopefully someone else will chime in also.
If your discussions with Chesapeake were from 2 years ago I wouldn't worry about it. CHK was already in trouble and was looking for something that would make enough money to bail them out and not just a profit. As for being tier 2, ten years ago the Bakken wasn't even a tier, it was sort of an experiment, that generally didn't pay off. Compared to that tier 2 sounds like red hot property.
You may be able to list your property online. You can find listings near the bottom of the home page here if you click on the home button at the top left of the page. There are also online mineral auctions, and you can set a reserve price, but the point is to sell, so try to figure a reasonable price. If you auction I believe you could start a little high with the price decending next time if it didn't sell, but these are probably lengthy auctions allowing buyers to investigate and if they buy they have to check title before you are paid. If you are saving on the appraisers cut, you can probably afford to be a little more reasonable. If you never get a decent offer, I wouldn't sell.
Mrs Gallagher,
I purchase mineral rights in Oklahoma and North Dakota mainly but also in every producing state and I do buy from these sites. You can set a price or put make offer. Both have very knowledgeable people running them and can offer a lot of help.
Thanks so much for your help!
I’m pretty partial to mineralownermart.com. Blake Thompson is a stand-up guy.