Just received an initial offer to sell mineral rights from Triple Crown Acquisitions. I am totally new at this and wasn't for certain if I even had any claims to mineral rights from inheritance. The company has a lot of accurate information from my now deceased father and step-mother (no other children). The property in question is part of the James Rowe Survey, A-585 in Shelby County Texas. Through internet search, I found that XTO Energy has applied for a Recompletion permit dated April 8, 2013. I have several questions, but the main ones are; 1) does anyone know anything about this company Triple Crown? 2) They want me to sign over the rights before a clear title search is done with a clause of the right to redraft offer ($45,000) 3) If the permit is for Recompletion, has production ever been done at site (Carthage field, Haynesville Shale), 4) What are the tax liabilities of selling?
I receive these offers weekly and shred them since I NEVER sell mineral rights. The fact that they want to pay you that much obviously means you either have a significant amount of acreage to lease and/or they expect a lot of revenue from your acreage of any amount.
You have to decide for yourself if you need the immediate Christmas bonus and are willing to forever relinquish ALL future revenue from this lease OR to hang on to it and lease it to an exploration company at some point. My experience is that they are buying you off at a fraction of the expected revenues you might expect from production and each mineral interest owner just has to decide how much they need the money right now vs waiting for production at some point in the future which might or might not exceed the $45,000, which they certainly believe since they are hoping you will sell to them so they can lease it to an operator.
Good luck regardless of what you do and it will be taxed at ordinary income I think and you can do your part to contribute to this Obamacare disaster.
Thank you Emmette for your response.
Emmette Anderson Clark said:
I receive these offers weekly and shred them since I NEVER sell mineral rights. The fact that they want to pay you that much obviously means you either have a significant amount of acreage to lease and/or they expect a lot of revenue from your acreage of any amount.
You have to decide for yourself if you need the immediate Christmas bonus and are willing to forever relinquish ALL future revenue from this lease OR to hang on to it and lease it to an exploration company at some point. My experience is that they are buying you off at a fraction of the expected revenues you might expect from production and each mineral interest owner just has to decide how much they need the money right now vs waiting for production at some point in the future which might or might not exceed the $45,000, which they certainly believe since they are hoping you will sell to them so they can lease it to an operator.
Good luck regardless of what you do and it will be taxed at ordinary income I think and you can do your part to contribute to this Obamacare disaster.
If you sell your mineral rights, you would be required to pay a Capital Gains tax of 30 percent... In 2012 the capital gains tax was 15 percent but the new year 2013 it increased to 30 percent plus you also would have to pay your federal income tax. To me, those two figures alone would be an incentive to keep my mineral rights. Plus I would never sell my mineral rights and I too, have offers all the time wanting to buy my land with mineral rights.
Plus your land is quite valuable. The fact that your Dad left it to you should be reason enough to keep it. You don't miss what you never had.......
I have had many offers. The answer should always be No. I would only consider if it is an amount to last the rest of my life. If you have children, take whatever royalties you can get then pass the rights on to them. There is a hundred years worth of royalties under your ground. Most of these companies are owned or affiliated with the major producers who want you to sell before they start the serious pumping.
Say No. Pass it on to future generations.
Watch the two Documentaries Promised Land and Haynesville.