We just found out that we are heirs to our g-g-grandmother's 33 acres of mineral rights in Meade District, Tyler County. She sold off 66 acres but kept 33 acres of mineral rights. Now here's the great part, there are 92 people involved in this. I don't know if the 92 of us are only in on the 33 acres or whether it's 92 in the whole 66. We are so confused as what to do. Antero made an offer to me, my siblings and my cousins, that I know for a $100.00 signing bonus and 15% royalty. We figured that there were about 22-25 of us. We don't have a clue who the others are. The contract also has the post production costs which from what I understand comes out of our pocket. Is it worth it for us to agree to this or are we being lowballed because there are so many on this plot of land? We're afraid this is going to cost us money in the long run. HELP!!
Deborah,
In my humble opinion, you are being lowballed and would suggest you contact an attorney to represent you in the negotiations. Contrary to what a production company claims, there is no absolute urgency to sign and researching your interests will only help you in the long run. Keep in mind, what you sign today, can remain in effect for many generations, as long as there is production, so counsel will greatly assist your position. Feel free to contact me directly if you wish a recommendation for an attorney.
Cheers,
WJ
Are you missing a couple zeros on that signing bonus?
You need to find out what your net acreage is.
I owned 25 net acres of a 118 acre tract and got $2,500 an acre with 16% royalty, which I think was low then.
The more net acreage you own on a tract the more it is worth because then the gas company has to deal with fewer people. Some folks are being offered upwards of $5,000 a net acre on these forums. $100 is certainly way too low.
As far as production costs as I understand they do not come out of your pocket but rather out of the proceeds of any minerals produced on the land. After they cover their costs then you start getting royalties.
If the entire deal is worth more than a couple thousand dollars than I highly recommend contacting an attorney who specializes in mineral rights negotiation. Mine cost about $700 to review my contract and an hour and a half on the phone to answer questions. Money well spent in my opinion.
Thank you for your response WJ and Jim. I guess I needed to add that myself and 3 siblings only have .05893 of an acre each. I spoke to my cousin in Florida, he and his 2 siblings and step-father have .0315 of an acre each. I don't know what my other cousins have. My cousin in Florida is suppose to try and contact an attorney in West Virginia. I know that we're not going to become millionaires but I just feel that we're being lied to by the person that my cousin spoke to at Antero. He said that the offer was low because of so many people involved.
Deborah,
If I may add to my earlier suggestion, it would be wonderful if you select one person among your siblings and cousins to be the contact person, representing all of you as one. The small pieces add up to a larger piece and carry greater weight.
I cannot convey how important an attorney can be, it has come to the point that I have my attorneys on speed dial.
WJ
Wilson makes a very good point. The more of your family that speaks as one voice, the better. And the more to chip in on attorney fees. Very important to have an attorney involved.
Wow, I can't believe how things change and still remain the same. I can not imagine Antero still trying to sneak and pay nothing. I guess they are always looking for the mineral owner who will fall for that trick. We received a 1000.00 on a modification last month so 100.00 is sure a kick in the teeth. Wait them out and see just what you can get and research the net to better educate yourself. When they start threatening a partition suit then, that's when you need to start negotiating. Every phone call, every threat and any emails in between means very little until the money and % and language is good. The only problem with that many people, it is very hard to get everyone on the same page. Lol