New Member Question

West Virginia Mineral Rights Doddridge County, WV
1

Hi All,


My family owns mineral rights to about 100 acres in Doddridge County. A couple of weeks ago, we were contacted by Mutshelknaus Oil and Gas with an offer of 12.5 percent royalties and $800.00 an acre for signing. A couple of days ago, they increased the offer to $1500.00 per acre with the same royalties without us even negotiating with them.

I was wondering if any one had ever heard of this company and if the offer and the quick increase sounds reasonable.

Thanks in advance

Gary

2

Hi Gary,

I have heard the name Mutshelknaus Oil and Gas. I haven't had any dealings with them through any of my clients yet, so I can't speak about them from personal experience. $1,500 is a reasonable offer. $800 was not. 12.5% is low, you should be able to negotiate to 14% easily. One of the most effective ways to negotiate a higher bonus is to do exactly what you did. It doesn't always work so quickly, but will always work if the company is truly interested in your property.

You should also ask for (at a minimum) an Indemnification clause and a No Warranty of Title clause. There are other things I recommend to my clients, but they are all very dependent on that client's specific situation, so I can't say one way or another here.

Kyle

3

Kyle,

Thanks for the information. It was very helpful.

Regards

Gary



Kyle Nuttall said:

Hi Gary,

I have heard the name Mutshelknaus Oil and Gas. I haven't had any dealings with them through any of my clients yet, so I can't speak about them from personal experience. $1,500 is a reasonable offer. $800 was not. 12.5% is low, you should be able to negotiate to 14% easily. One of the most effective ways to negotiate a higher bonus is to do exactly what you did. It doesn't always work so quickly, but will always work if the company is truly interested in your property.

You should also ask for (at a minimum) an Indemnification clause and a No Warranty of Title clause. There are other things I recommend to my clients, but they are all very dependent on that client's specific situation, so I can't say one way or another here.

Kyle