I received an offer from Shell for leasing mineral rights. I know absolutely nothing about this! i am a medical biller. I may be sending out too much information here, but I was offered 100 per acre and a small percentage of profits for a one year lease. I initially looked at this as a windfall i wasn't expecting, but after doing research on the internet, I see that Harper is becoming a "boomtown" (from CNN money). I just need some advice. Is this a fair price? I would be grateful for any information.
I am very familiar with Shell and the leasing going on as well as leasing in Harper County. This offer does not sound right, I think there is a good chance you are not actually dealing with a shell rep. or you have just been given some bad information. I have never heard of them buying a 1 year lease for such low bonus money. Again, I can speak from first hand knowledge. I think there has to be more to this offer to lease. Again it just does not sound like a Shell deal. I have leased land in Southern Central Kansas for years and Shell is hands down the best thing that has ever happened to this area and the oil business. Shell has gone out of their way to treat all landowners fairly when it comes to their lease terms..So again, this does not sound right. I would call the landman back and double check with them to verify what they are trying to do here.
thanks to much! He actually sent me a fed ex overnight package with a long very legal looking contract and a bank draft. I did sign it and returned it to him and took the bank draft to my bank but it has not paid yet. Now i wonder if my total ignorance of this business has cost me. The Shell logo was all over the paperwork. thanks for the return answer. I am still wondering if I made a mistake.
Leasing Agent 007 said:
I am very familiar with Shell and the leasing going on as well as leasing in Harper County. This offer does not sound right, I think there is a good chance you are not actually dealing with a shell rep. or you have just been given some bad information. I have never heard of them buying a 1 year lease for such low bonus money. Again, I can speak from first hand knowledge. I think there has to be more to this offer to lease. Again it just does not sound like a Shell deal. I have leased land in Southern Central Kansas for years and Shell is hands down the best thing that has ever happened to this area and the oil business. Shell has gone out of their way to treat all landowners fairly when it comes to their lease terms..So again, this does not sound right. I would call the landman back and double check with them to verify what they are trying to do here.
My mind would like to be put to ease too.
Wilson
Leasing Agent 007 said:
If you will accept my friend invite, i will send you a message to set your mind at ease. I will explain in a more private setting. Thanks Marsha.
Marsha,
You posted your question on 5/24 and you post on 5/25 you already signed and returned the signed lease. tsk tsk tsk.... I hope you didn't leave too much money on the table and that it all works out for you.
Wilson
Marsha Dea Stevens said:
thanks to much! He actually sent me a fed ex overnight package with a long very legal looking contract and a bank draft. I did sign it and returned it to him and took the bank draft to my bank but it has not paid yet. Now i wonder if my total ignorance of this business has cost me. The Shell logo was all over the paperwork. thanks for the return answer. I am still wondering if I made a mistake.
Leasing Agent 007 said:I am very familiar with Shell and the leasing going on as well as leasing in Harper County. This offer does not sound right, I think there is a good chance you are not actually dealing with a shell rep. or you have just been given some bad information. I have never heard of them buying a 1 year lease for such low bonus money. Again, I can speak from first hand knowledge. I think there has to be more to this offer to lease. Again it just does not sound like a Shell deal. I have leased land in Southern Central Kansas for years and Shell is hands down the best thing that has ever happened to this area and the oil business. Shell has gone out of their way to treat all landowners fairly when it comes to their lease terms..So again, this does not sound right. I would call the landman back and double check with them to verify what they are trying to do here.
I looked into it and Marsha, I assure you did not make a mistake. Don't let others worry you. What no one on here sees is that you own a mineral interest that expires in less than a year. It is not worth more than what you were paid since the company will have to turn around and buy another lease next year from the new mineral owner when your interest expires. I know the man who you were dealing with at Shell and I assure you he is a Shell employee which most landman are not employees of the companies they work for.
Sorry, I am not sure how to "accept" the friend invitation, but when I figure it out... I will!
Wilsontownship said:
My mind would like to be put to ease too.Wilson
Leasing Agent 007 said:If you will accept my friend invite, i will send you a message to set your mind at ease. I will explain in a more private setting. Thanks Marsha.
Thanks so much! I was born in Harper, KS many years ago, and have long since moved away, this really was a windfall for me, I am so glad to get information from someone who knows about this business, because i surely don't!
Leasing Agent 007 said:
I looked into it and Marsha, I assure you did not make a mistake. Don't let others worry you. What no one on here sees is that you own a mineral interest that expires in less than a year. It is not worth more than what you were paid since the company will have to turn around and buy another lease next year from the new mineral owner when your interest expires. I know the man who you were dealing with at Shell and I assure you he is a Shell employee which most landman are not employees of the companies they work for.
You are welcome. For a lot of folks that don't live in Harper County or the surrounding area it is difficult to always know what is going on with the drilling and leasing and especially who you are dealing with, so it is bound to cause some concern. But again, for what its worth I assure you that you did the best you could do with your mineral interest, now just hope they get a well drilled in time for you to make some royalty from it.
take care,
it is nowhere near a fair price. Harper is leasing for $600 to $800 per acre and 3/16 interest. If you want to be leased just let me know and I can point you in the right direction.
you guys need to realize that she owned a term mineral interest, lease was only good for about nine months, who would pay full price for that? After her term is up shells lease is no good and they have to work out and pay for a new lease with the new owners. The folks getting big money own their minerals indefinitely. They also sign longer tern leases. I leased in Harper for years and am very familiar with this lease and the property. These are the facts.
when I saw this , there was no comments or discussion underneath at all......so thanks for the facts. have no idea how that happened , I thought I was first comment,,,,,
Thanks for the clarification 007. This information hadn't been included in previous posts and it helps us to understand the full picture more accurately. I removed my smart *@& post!
Wilson
Leasing Agent 007 said:
you guys need to realize that she owned a term mineral interest, lease was only good for about nine months, who would pay full price for that? After her term is up shells lease is no good and they have to work out and pay for a new lease with the new owners. The folks getting big money own their minerals indefinitely. They also sign longer tern leases. I leased in Harper for years and am very familiar with this lease and the property. These are the facts.