My father always said "never sell your mineral rights". I've held onto them through some very lean times when extra cash would have been handy. I had offers, but I remembered my dad's words. Then, decades later, along came the Haynesville Shale and my late father looked like a very wise man.
However, I have recently sold my mineral acres in the Haynesville - and I think Dad would approve. The truth is that our life circumstances change and it's always good to re-evaluate things. I am getting older, my health is only fair and I'm looking towards a lot more expenses. I live almost 2,000 miles away and my heirs have little knowledge of oil and gas beyond how to put fuel in their cars! Our land has one producing well, but it's unknown when it/if another will be drilled.
I joined GHS shortly after signing a lease in 2008. GHS is unique in bringing together everyone involved in minerals - the landowner, mineral rights owner and people who work in the industry. You seldom see bad information on GHS - there are too many experts and they love to debate among each other. My deepest thanks to Keith and everyone on GHS.
When I decided to sell my mineral rights I turned to Skip Peel, an "independent land man". Over the years I have been impressed with how helpful he has been to GHS members and how knowledgeable about the industry he is. Other members of my family were able to pool their acres with mine and Skip made a nice, tidy package to show investors. Being independent meant that he could shop our acres around to any company or group of investors. He's been in this business a long time and he knows it well.
Skip spent a lot of time helping us understand the offer and the sales process. The details in these mineral agreements are important. He found a few acres of mine that I never noticed were missing because of an paperwork error! Skip also visited with an elderly member of my family several times to help her understand the deal. She means a lot to me and there are few people I would trust with that assignment. Skip was able to get us a very good price on our mineral rights. It's too bad my father is gone, he would have liked working with Skip.
I've learned a great deal on GHS and I plan to stay on board here. I'm still Hopeful About Natural Gas as a bridge fuel to renewables ... also, one thing I've learned is to double check what the letters spell in your screen name!
Skip is a good man, and also is very knowledgeable about the O&G business (those are two very different things, of course).
I have "family land" that has been in the family since the very early 1900's. A few years ago, I had a health scare, and I wrote a long email to my children describing all of the various parcels, how I came to own them, who they were leased to and their potential monetary value from leases. My admonition, different from your fathers, was that they were to never sell the land unless they faced the most dire circumstances, and even then, they had to offer it first, at a good price, to my nieces and nephews.
I got an offer letter for minerals in one section this week. I'm not interested in selling. I'm not facing "dire circumstances" and i think that this would simply not be a good financial deal for me. But everyone has to make their own judgment on this.
sounds like you at least did it in a smart fashion. Good for you.
I really like how you asked your kids to offer your rights to your nieces and nephews first. If my family had shown such unity many years ago I might still live in Louisiana! But I don't have hardly any close relations anymore, and those I do have were taken care of with the sale. But, it's a real nice life lesson for your kids and their cousins.
I can barely remember it, but I am fairly certain that my father spoke a long time ago about the prospects of "deep oil and gas". I've always wondered if he didn't run across one of the early pioneers of fracking technology. Dad knew a lot of people in Houston in the 60's and 70's. Dad was convinced of the potiential of our land, and one of the great joys of my life was to help prove him right!