I’m trying to figure out if it’s worth my time to go through probate getting my grandpa’s mineral rights put in my name. There are 320 acres in moffat county Colorado. Any idea what its worth?
I have no idea what they are worth, but probate in Colorado is cheap and easy. Unless they are worthless (unlikely), I’d say it would be worth the time and money.
You don’t say if these mineral rights are on the tax rolls yet. If so, find out who the tax statements are being sent to. If you are named as an heir to your grandfather’s estate, get a copy of his will (if you don’t already have one) It will state what assets you are entitled to and what percentages of those assets. 320 acres is a fair size chunk, so I would definitely pursue the avenue of getting it into your name.
Vic in Oregon
My mother’s family and heirs retains mineral rights on approximately 81 acres in Moffat County. I received a call today from a land man from Shell Oil and Gas in Houston, TX advising that they had recently purchased the lease from our previous lease holder (East Resources). Shell wants to have us sign up to a new lease for the next five years for when the current lease expires next year.
I would also like to understand what the lease rates are in Moffat County, and also understand if Shells interest is part of their “Mahogany Project”, i.e. an extension of their non-conventional recovery study in Rio Blanco county, or if this is a more traditional exploration effort in Moffat county. Any feedback or insight would be welcome and much appreciated.
Yes, the southeast corner. I’ll have to look up the legal description to confirm. East indicated a couple years ago that they had drilled producing wells about 3 miles to the north, but I have not yet verified that.
Tim Metz said:
Gerald, I had been watching East Resources leasing in Routt county up till about 3 months ago when they stopped. Most in the area are planning Niobrara formation wells. Pioneer and a couple others started leasing some years back in Moffat and Routt. What part of Moffat are your minerals in, by any chance would they be in the Southeast part of the county?
I haven't seen Shell's offer yet. I will post back more details to you when I have it, should be in a couple days. Land man seemed very anxious, but you never know. I will provide more info as soon as I can. Don't hesitate to call me
Tim Metz said:
Then my minerals are close to yours. There are some nice producing vertical Niobrara wells in the area. There are some permits just issued for the area also. Did Shell discuss any terms and does your lease have the right of first refusal lease clause so you can not top lease to anyone else without offering it to them?
My minerals are Township 5 North, Range 90 West, 6PM Section 36 Lot 5 and 6- That’s straight from East’s lease. I just checked COGIS also and saw the same thing you did. Are you close even…?
Tim Metz said:
Yes do post the township and range of yours when you get to it. East Resources has 2 permits in 6N-90W and 91W but they must be old permits. They are planned towards the top of the Niobrara. It’s good to see someone like Shell in the area, there are a lot of leasing agents but it may be for only a couple clients and some maybe speculators hoping to flip. For what little they offered me I figured I might as well wait.
Gerald & Tim - I would be interested in keeping in the loop about your discussion. My sister and I are being contacted by probably the same agent from Shell about leasing our mineral rights. They are in the same area as yours. We inherited them through the family. My sister and I turned down East Resources several years ago but several others in the family did lease theirs. Trying to get as much info as I can.
The name of the gentleman from Shell that contacted me is Chris Fowler, call me anytime if you want to discuss further. I’ll update when I have additional information.
christa fairbrother said:
Gerald & Tim - I would be interested in keeping in the loop about your discussion. My sister and I are being contacted by probably the same agent from Shell about leasing our mineral rights. They are in the same area as yours. We inherited them through the family. My sister and I turned down East Resources several years ago but several others in the family did lease theirs. Trying to get as much info as I can.
Tim - It’s Moffat County. Section 90W-4N. A bit over 200 acres.
Hi there, I was also contacted by Core Land Resources, got a letter today. I only own the mineral rights to 20 acres, Township 7 North Range 89 West 6th PM. Section 6?
They offered 5 year lease, $50/acre bonus with 1/8 royalties. Is this a decent price?
Seems awfully low. Our current lease signed in 2006 (formerly with East Resources, now taken over by Shell) is for $90.00/acre bonus, 1/8 royalties.
alicia wietholter said:
Hi there, I was also contacted by Core Land Resources, got a letter today. I only own the mineral rights to 20 acres, Township 7 North Range 89 West 6th PM. Section 6?
They offered 5 year lease, $50/acre bonus with 1/8 royalties. Is this a decent price?
Thanks, wonder if I should counter… that’d be a difference of about $800.
Thanks Gerald, I turned down the offer and he came back with $100/acre. Woohoo!
Congratulations. I think we all gain a little bit when we network. I’ll keep you posted when I get the offer from Shell hopefully this week sometime.
alicia wietholter said:
Thanks Gerald, I turned down the offer and he came back with $100/acre. Woohoo!
Definitely! So when the lease is bought out by say shell for instance, does that mean they’ll definitely drill
Tim, Did Quicksilver’s agent mention what type of drilling they or their client had in mind, i.e. horizontal or vertical? The original offer of $250 , or even the $200 counter offer, is very, very interesting. That’s way higher than anything on this post or that I’ve seen otherwise. Still no word from Shell, I’ll give them another week and maybe call them back. Please keep us posted as to what is happening. Very interesting…
alicia wietholter said:
Hi there, I was also contacted by Core Land Resources, got a letter today. I only own the mineral rights to 20 acres, Township 7 North Range 89 West 6th PM. Section 6?
They offered 5 year lease, $50/acre bonus with 1/8 royalties. Is this a decent price?
We own oil and mineral rights in Moffat County, CO.
Section 20, 29, Township 8 North, Range 89 West
Our family was sent out drafts for gas and oil toplease agreements for us to sign by a company called Nextenergy from Denver Co. They say they are in partnership with HRM Resources, LLc which owns and operates the Buck Peak and Grassy Creek Niobrara oilfields. Anybody hear of this outfit? Is this another brokerage for oil and mineral rights or do these people actually drill?
Offer is $35.00 / acre initially with $100.00 per acre when the previous lease terminates. 15% royalty and 5 year lease. Does this sound fair?
What does" 21.73 net acres under 239.03 gross acres" mean?
Thank you for any information you may have to share with me. I am trying to learn all I can before I sign anything!
Dianne Silktea3@aol.com
Keywords: CO, County, Moffat
I had a couple interesting developments to share this week. First, I received a lease extension offer from Shell Oil Co. Shell purchased the lease from our previous lease holder East Resources. Shell offered us $100/per acre, with 10% of that paid upon signature of the lease renewal, balance due by August 2006 when our existing lease expires. The royalties of the existing lease are 12.5% and remain in effect for the 5 year term of the new lease. In addition, there is a unitization amendment, which I am very leary of, and need to further review.
While pondering the above lease extension, today I received an offer from Nextenergy in Denver. They are offering a bonus of $135/acre, and 15% royalties. This lease is offered as a top lease, with $35/acre paid now and the remaining $100/acre paid upon expiration of our existing lease in August of next year. This lease also has a unitization clause. If Nextenergy renews the lease in five years, their obligation is $270/acre for renewal in 2016.
At this time, I have not contacted the other family members to get their thoughts. However, I am inclined to reject the Shell lease extension and counter them back to a higher number, not sure what that might be. Very very interesting to get BOTH lease offers the same week, particularly since our existing lease still has nearly 10 months before it expires… Anyone else have any “new” news?
Glad I googled this…just contacted by Shell as well. Inhertited rights from father/grandfather in Moffatt and Routt. Told for years that they were not worth anything but paid the taxes as they are part of our families history. So, please…what is going on…
Have 479 acres. Offer is $250 per net mineral acre bonus consideration, 3yr primary with option for 2 more with a 17.5.00% royalty.
This means nothing to me…can someone explain?