Hi Folks
My wife would like to sell some or all or her mineral rights to land in Williams County, North Dakota, on which there are 18 producing wells. According to the Mineral IQ website, the present value (PV10) of these rights is $127,102.
What is the best way to find a buyer, set a fair price, and negotiate a sale?
You need to say a few words about how much royalties you get and how long the 18 wells has been online + your royalty rate.
A general location should be provided as well. The township, range, section. Who is producing the wells currently?
Sean, to answer the question you asked, you might look in the directories above for mineral buyers. You can also think about putting the minerals in mineral auction such as MCEE or Energynet. If you are handy with the computer, you can always go online in Williams county and determine who is buying minerals in Williams county.
Usually mineral buyers find you. Have you had any interested parties in the last year or 2? Just a heads up so that you arent disappointed, no company is going to come close to PV10 pricing on declining wells, unless there are a couple of permits to drill or increased densities recently filed on your minerals.
Well the rubber meets the road on how good/crappy the forecast is that goes into MineralIQ, but folks would probably buy your PDP for something close to PV10. (i.e. a reasonable declining forecast is discounted back at 10%). Prob closer to PV12 but you never know, somebody may think we are waterflooding the Bakken in the next 20 years.
Not sure how many mineral buyers will find you when you are $100k worth of minerals. They might. But its a bit harder in ND with no tax rolls.
If you lead with : I want to sell my minerals, they are located specifically here…on this site, you may just get somebody to make you an offer.
I have minerals in Mountrail county & I usually get 3-4 offers per years to buy my rights. IMO one should never sell them.
do you receive royalty cks ?
More often than not, I see/saw posts that it’s best to never sell minerals. My grandmother and aunt inherited minerals in Burke County, ND back in the 1920’s that carried forward to 1970 when my father inherited the rights. Always thinking “one day” something will happen, he died in 1996 with my mother taking charge then of the rights. She died in 2010 but passed on the rights to 3 of 5 children, I being one.
Dissention/suspicion for the possibilities began in 1965 so there was a long-standing, ill-feeling toward the “what if” and “who” would reap benefits, if anything but in 2012, sure enough, the Bakken area saw drilling and production happening.
I have no children, have no nieces or nephews that have ever given a rip about who I am, what hobbies I have enjoyed, made an effort to ever plan a visit and this, I feel, was compounded by 1 brother, their father, spinning a further tale of distrust when, according to law, in 2010 I had to do probate for our mother and one sister…one of the 3 that inherited the rights that also preceded our mother in death.
What I am getting at is this…at some point owning mineral rights becomes a headache. For some, like my family, it tore apart the good feelings towards one another, caused additional separation and now that I have 2 siblings left and no connection, facing end of life prospects as I age means parting with minerals.
How to do it? Who to sell to? What higher price you can get on speculation? How to deal with the “afterward” when a check is delivered and I mean (1) Capital Gains or (2) Taxes to include when (3) retired?
The obvious help is NOT there by others in the past from Landmen to the company who paid you royalties or if you live in a state “far-removed” from where minerals are obtained. Answers are vague that tell you to seek out a tax consultant and this is by those that often have bought/sold/exchanged.
My one person answer is that if long-term isn’t in your path meaning others to “bless” with the speculations you’ve had, then sell! Minerals are a gamble just as sitting at a roulette table in Vegas or buying a lottery ticket.
The philosophy is “it’s one more dollar that I didn’t have yesterday” can ring thru. If it isn’t costing you anything, hold on. However minerals need to be recorded and if a will is in your works, proper documentation needs to be done as you wash your hands of the unknown.
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