I have been hammered with offers lately to buy my minerals. Not necessarily trying to sell, but wanted to see what things were going for. I had a couple questions I was hoping someone could answer for me. I would greatly appreciate it.
1. Is there a place to look up comparable sales in the area?
2. Why would I be getting so many people trying to give offers at this point, when the industry has been in such a rough position? Are these offers trying to sweep up minerals at low prices while they can?
There is no central place with the answers ready for you. However, you can readily go electronically into the Weld County Court and Recorder web site and search the "Permits & Records". Then, go to "Recorded Documents". Then read and click the "I acknowledge" button.
Then you need to register as a "First Time User" including a new username and password. You also need to enter credit card information, because you will be charged a minimal amount once you find records to download.
After that you can enter "Document Search" as a registered party.
On this form use the lower right entry bar named "Grantee" and put in the first couple of words of the name of the companies who have already contacted you. I know that Atomic Capital has made and recorded some purchases. Then limit your search in the upper left corner to just the last year, say 1/1/2015 until present. A lot of entries may pop up, but you can limit you review to just "mineral Deed & Assignment". So far it has not cost you anything, but if you have found something you want to keep, you have to download it by buying it. But it is not much, and you can look at it first.
Let the rest of us know which ACTIVE buyers you find this way. I have found that many are friendly when you call them. Good Luck!
Would your answer yes to the second question only be applicable to mineral rights or would it income mineral rights with active producing wells? Just curious because I have an interest in a number of producing wells and am no longer receiving offers. I’m supposing that with the market low wells that have been producing and are now further down the niobrara decline curve are of less interest to buyers.
The inclusion of price of the transaction varies from county to county, and state to state. In some places the price must be included, which is great for us. In others, we can back-calculate from the recording tax paid, which is stamped on the document and is usually $3-$4 tax per $1000 of transaction price. That is still OK for us.
Weld County allows you rarely either of those approaches, so the best is to call the Grantee (the buyer). That party is frequently a company devoted to buying mineral rights. They will be interested in talking with you, because you might be a candidate for selling your mineral rights to them.
You must be courteous, but FIRM that you first want to do your own research and get the feeling of the market. How much did they pay for the handful of purchases, which they made and which you found in the courthouse?
It also helps, if you can tell them (hopefully truthfully) that you are familiar with neighbors who might want to sell. Good Luck!
John Gustavson
PS You can also call the Sellers, and maybe get them to tell you how much they were paid.