Hello Columbia County!
It has been several years since I posted to GHS, please excuse my absence while activity died down.
However, I recently got an offer from Albemarle for incidental minerals (oil & gas I assume) on some mineral rights acres I own in the vicinity of Village. I don't think I own surface rights but apparently have about 7.5 net mineral acres interest on a 40 A tract.
The offer is for $100 per et mineral acre, 3/16 royalty, on a 3-year term.
Is this the current standard offer of this sort?
Is there an opportunity to negotiate for more bonus and/or royalty here?
Is it worth involving lawyers for this small amount?
Can I gain anything by calling the land department myself and asking for better terms?
Joe, you are on the Main Page, not the Columbia County page. I'll post a link to the group below. Lots of questions are being asked about the spate of leasing for brine with clauses that include rights to oil and gas. All the ones that we have looked at and discussed here on GHS are terrible. That is to be expected as the production that might come would likely be years in the future. That's why the terms of these leases are for up to twenty years. That is a big red flag. Speculators, they prefer the term investors, are looking to pick up rights to both brine and oil and gas on the cheap. I've never in my career seen more one sided lease terms. I think it will take a couple of years to see what the true value of brine may be in specific locations and the oil and gas rights are just throw ins while the speculators are prospecting for those willing to practically give away their mineral rights. If you would care to post in the Columbia County group, do it here:
Thanks, Skip. Good to see your comments again. I reached out to my attorney in Magnolia, only to find that he is now a judge. I asked the office receptionist to have their new O&G specialist contact me, but nothing has come in yet. Thats when I thought of the collective wisdom of GHS.
I could use a refresher in ;lease negotiations, It seems like nearly ten years since I have seen much activity for my interests down that way.
Best regards and try to stay cool.
Joe Deer Hunter
I got an offer from a Brine Company 2 years ago, decided to just ignore as don't recall owning any minerals rights, just have oil wells. Well they kept sending me letters about every 6 months, so finally called and found out my deceased daddy had kept minerals on property he sold back in the 50's. They sent me a lease and an offer, I refused it because was way too low. One year later, they came back and had doubled the offer, so this time, I accepted. The Bonus was really good and other amounts good. Being old now, I decided to take a chance.My daddy was a great man, and had deeded these mineral rights to me and my brother.
iwanna, how good was the bonus? It would be helpful to share with members who are considering brine leases currently.