We we're offered to sell our mineral rights for $1,600 an acre. I asked for $2,000 an acre in an area known as the Sardis District in WV. I was told that he did a title search, which stated we own the royalty rights and not the leasing rights, and therefore it was not worth anymore than $1,600. I would like to believe the individual, but we don't want to be taken advantage of at the same time. Any advise?
Brian
I think some clarification on what exactly is going on is needed. Generally, there are multiple levels of involvement here. There is a physical land owner(s) and a mineral owner(s). They may not be the same. An oil and gas company has to pay a surface owner a certain amount for usage. (driving truck, making roads, storage containers, damage, reclamation, etc.)
They also have to pay out a royalty to the MINERAL owner at least 12.5% on the production they generate. (This is where you'll get seriously taken advantage of if not careful) So, for every $1mil of oil, gas, butane etc they produce from your well, you get $125,000. That's completely made up, but you get the idea. (It gets more complicated with pooling) Be aware, ALL aspects of a lease can be negotiated. If a company comes to you and says "this is a 'standard lease' they are manipulating you.
You can also get a signing bonus just for signing a lease based on acreage. This goes to the mineral owner.
In your post it is not clear who you are or what you own.
Also, Brian,
You are talking to a person who represents an oil and gas company. There is no chance on this earth that company wants to make you rich instead of making bigger profits.
Hi Jeff,
Thank you very much for responding to my post. It is extremely interesting learning about this topic. My dads family sold the property with their home and acreage near Salem, WV, but they kept the ownership of their mineral rights. My dad passed away a year and a half ago so we are still trying to figure out all of this. There is quite a bit involved, but I'm getting there.
Brian
Hi Brian, do you know about the website for Doddridge county records?
It has newer things and some older things. Some are just indexed and not viewable, but a place to start. I have been told there is a way to get an account with them to be able to download and print the records that are viewable. Not sure how to do it.
There is a Doddridge County Group which is part of this Forum. There might be something helpful there or another place to ask questions and get help.