My brother and I share equal mineral rights (the land is owned by someone else) on 40 acres in Michigan (Grand Traverse County, Green Lake Township). We just received an offer from WYOTEX Drilling Ventures for $50 each per acre, so we would each get $1000 for a three year contract with the option for 3 more years at the same price ... is this the going rate in this area for land that has never produced any oil or gas before ?
Marie,
Go to MSU extension website. There is a very good power point on signing leases by Curtis Talley. There is also a meeting tomorrow night in Rothbury (south of Ludington) in which a lawyer, MSU expert, and the DEQ
will be there to give a presentation and answer questions.
We also have rights in Green Lake Township. We have been approached by another company with the same type of offer but once again I urge you to look at the power point presentation tonight if possible so you can decide if you want to attend the meeting in Rothbury.
Donna
Thank you Donna - I'm going to watch it right now - I do own the mineral rights in Green Lake Township, but I live in Phoenix, AZ, so I won't be able to attend any mettings
up there ... Thanks again !!
Donna Dolwick said:Marie,
Go to MSU extension website. There is a very good power point on signing leases by Curtis Talley. There is also a meeting tomorrow night in Rothbury (south of Ludington) in which a lawyer, MSU expert, and the DEQ
will be there to give a presentation and answer questions.
We also have rights in Green Lake Township. We have been approached by another company with the same type of offer but once again I urge you to look at the power point presentation tonight if possible so you can decide if you want to attend the meeting in Rothbury.
Donna
50.00 and acre is not a bad price for "wildcat" land, but I think some additional research could be done what activity is in the area, what wells are being permitted nearby and to what formation, and also lease agreements filed in the register of deeds sometimes have payment per acre prices and options. My knee jerk reaction is to ask for the 3 year renewal to be at 75-100.00 per acre in case a play develops.
Marie,
I guess I didn't think to tell you that yes there are new wells going in, in Green lake township. There is a lot of activity in Mayfield Township as well which is bordered by Green Lake township. Many of these wells are producing.
Donna
I suggest looking at the register of deeds to see if any information can be found on what lease bonus, term and royalty the surrounding leases contained. If the area is being drilled and the wells are productive, you could certainly get a greater bonus and perhaps royalty on production. If it is crude oil they are looking for, the drilling units are 40 acres, which certainly fits your land very well.