What is fair market value of leasing rights in Arkansas

We recently found out we have mineral rights on 338 acres of land in Arkansas. A land company has contacted us as heirs of the original owner we are entitled to 1/3 or 1/4 of the leasing rights. What is the fair market value of mineral rights(oil, gas, etc.) on the land. We have no idea what all this means. Any help would be greatly appreciated.

The place to start is the little search box up in the corner. Enter “Arkansas” and you should find out quite a bit about current leasing.

Trina, you’re likely to get more accurate feedback if you’ll include the county name.

Lisa, In 2004 we leased in Van Buren County for $50 an acre, 1/8th. Not a good contract. In 2005 we leased more acreage Van Buren County for $150 an acre , 1/8th. Not so good. in 2006 we leased acreage in Cleburne County for $500, 1/6th. Better. I did see an integration listed on the acreage we leased for $500 and the parties that were integrated got a higher $$$ amount, but cannot recall how much… Leases are usually for three years or five years. I heard stories about higher amounts in Arkansas up to $2000, never met anyone that confirmed. We know people that have leased for $500 to $750 an acre with better percentages. We received offers to sell our mineral rights from a low of $500 an acre to a high of $2500 an acre. We chose not to sell. We are very pleased with the way things have worked out and are satisfied that our acreage is with Southwestern Energy. Your are fortunate that in 2010 that there are so many resouces on the internet to learn from now, those resources were not abundant in 2004. If you join and post your acreage description on the Yahoo discussion board “Fayetteville Shale” you will get several calls from landmen representing different companies. You can also set up a daily email request on google alerts for Fayetteville Shale and read a lot of business reports on companies active in Arkansas. Northern Trust Bank has a division in their bank that assesses mineral rights for their customers. I recommend learning which companies are really active in the area and have plans to continue drilling. One of our tracts was for heirs of XYZ family and we worked with other heirs to sign with the same company. If you know someone at the courthouse that works in records at your county seat they have seen thousands of filings and they might be helpful. There is public information if you seek it out. In 1954 my grandfather leased some minerals for five years for $300 total. In 1974 I leased 202 acres in Van Buren County for three years for $3000 total. Leases expire, but when a company drills and has even one producing well, you will never lease again. Then you are dependent on income from the well(s). There is a new U S Geological Survey report out that says there is more natural gas below the current drilling focus. If you live in Arkansas you might ask your banker if they could recommend an attorney that has been helping people with their leases. One last recommendation, put it in a trust for heirs, but don’t keep dividing the acreage for your kids. I met someone yesterday whose family has divided the acreage so much they receive a royalty check for $200 once or twice a year. Good luck.

Thank you for all the information. It seems that there will be 4 heirs to the land. I have no idea how all this works. I have been told I need a lawyer but I guess that will be down the road. I live in Oklahoma and the land is in Conway County, Arkansas. There is one company called Schonwald Land that has contacted me about this. They are the ones that found us and let us know we had mineral rights to over 300 acres in Arkansas. I just don’t want to jump into anything right now even though we could really use the money. Thank you for all your help

Jessica McNeil said:

Lisa,
In 2004 we leased in Van Buren County for $50 an acre, 1/8th. Not a good contract. In 2005 we leased more acreage Van Buren County for $150 an acre , 1/8th. Not so good. in 2006 we leased acreage in Cleburne County for $500, 1/6th. Better. I did see an integration listed on the acreage we leased for $500 and the parties that were integrated got a higher $$$ amount, but cannot recall how much… Leases are usually for three years or five years. I heard stories about higher amounts in Arkansas up to $2000, never met anyone that confirmed. We know people that have leased for $500 to $750 an acre with better percentages. We received offers to sell our mineral rights from a low of $500 an acre to a high of $2500 an acre. We chose not to sell. We are very pleased with the way things have worked out and are satisfied that our acreage is with Southwestern Energy. Your are fortunate that in 2010 that there are so many resouces on the internet to learn from now, those resources were not abundant in 2004. If you join and post your acreage description on the Yahoo discussion board “Fayetteville Shale” you will get several calls from landmen representing different companies. You can also set up a daily email request on google alerts for Fayetteville Shale and read a lot of business reports on companies active in Arkansas. Northern Trust Bank has a division in their bank that assesses mineral rights for their customers. I recommend learning which companies are really active in the area and have plans to continue drilling. One of our tracts was for heirs of XYZ family and we worked with other heirs to sign with the same company. If you know someone at the courthouse that works in records at your county seat they have seen thousands of filings and they might be helpful. There is public information if you seek it out. In 1954 my grandfather leased some minerals for five years for $300 total. In 1974 I leased 202 acres in Van Buren County for three years for $3000 total. Leases expire, but when a company drills and has even one producing well, you will never lease again. Then you are dependent on income from the well(s). There is a new U S Geological Survey report out that says there is more natural gas below the current drilling focus. If you live in Arkansas you might ask your banker if they could recommend an attorney that has been helping people with their leases. One last recommendation, put it in a trust for heirs, but don’t keep dividing the acreage for your kids. I met someone yesterday whose family has divided the acreage so much they receive a royalty check for $200 once or twice a year. Good luck.

Trina, Conway County is a good area. I have relatives who told me Schonwald’s office in Heber Springs, AR represents Southwestern Energy. You should ask him. They took some documents to him when they formed an LLC and trust for several tracts of lands and he forwarded them on to SWN. Jessica

Trina, Dad leased Conway County minerals with Chesapeake in '07 for $700 and 3/16 for 5 years. SWN has since applied to drill. I would contact both companies and solicit a bid. Jan

I own minerals in Conway county, Arkansas. I have a relative that leased in sec 30, T8N, R17W for $1600 per net acre and 1/5 rioyalty. She leased her minerals about 4 months ago.

I have recently began having some doubts about this land and the mineral rights. This company is called Shonwald Land L.L.C. Is is possible that this could al be some sort of a scam? He sent me documents detailing the acerage that we have the mineral rights on from my husbands g-pa that we never knew about. I’m just worried that this could be all a scam and I’m being duped. Does anyone know if this company is ligit?

i am wanting to know the names of competitive companies leasing mineral rights if anyway knows of any besides chesapeake let me know please.