I have a question. Four of us friends bought 300 acres many years ago together. We all have 50% of the rights in that land. We have now split that land into 4 equal tracts so each one owns his own tract in his own name. The question I have is: is it better to leave the mineral percentages under each tract with all four of us? Or should we divide the minerals up so each guy only owns his own 50% under his own land? Thanks.
Personally, having interest in as many acres as possible would be more appealing to me. This way you have a better chance of getting your interests into a unit.
Bigger net, bigger chance of positive return.
In my opinion, larger mineral tracts are more marketable. However, if one of your co-owners is a crank or rabid environmentalist, it could prevent you from getting leased.
I have been in the business 35 years. I know what happens when these rights are broken up. Yes, Rock Man is right—possibly, but I WANT THE FULL 100% of what’s under me so the only person to be mad at is ME, which makes me more responsible also.
OP said they only own 50% to start with - so they can’t have 100% under themselves in any case. There will always be at least 1 other ‘partner’; so split or stay with ‘25% of 50% undivided interest in the whole 300’?
John E. Broyles said:
I have been in the business 35 years. I know what happens when these rights are broken up. Yes, Rock Man is right—possibly, but I WANT THE FULL 100% of what’s under me so the only person to be mad at is ME, which makes me more responsible also.