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!
Wow, unexpected reply Skip. It was announced in our sales meeting that Ford is developing an all electric pickup that will be available in the near future. Once again I think that there other variables that are "swept under the rug" concerning electric vehicles. Used up lithium ion battery disposal could be an ecological problem and especially when the amounts become large. China using coal to generate electricity negates the pollution saving advantages. It seems they are waking up to the advantages of natural gas if the tariff nonsense doesn't screw that up too like soybeans which caused a substantial hit on our crop and we were lucky it wasn't worse than that like others. I always tell people we were supposed to be using flying cars in the 70's.
More importantly I was hoping to hear about the permit re-issue for Avoyelles if you had any info. Looks like there has been some positive press about the price of oil which can only help prospects for our Austin Chalk.
John, you may be relieved to hear that when the lithium-ion batteries are no longer capable of functioning for EVs, they are retrofitted for use as home storage batteries. Ford is not the only manufacturer going electric, they all are. Some European countries will no longer allow sales of ICE vehicles after 2022. And that's all vehicles not just passenger cars. I sat in traffic in downtown Shreveport a few days ago behind a big beautiful Mercedes van, it was electric. I was passed by a city bus - cng. I pulled up at my destination and the UPS truck in front of me was cng. The switch away from ICE is happening now. And the pace is accelerating.
I'm headed out the door. Remind me later and I will look at the permit.
Okay thanks. I just think CNG is a great solution for the immediate future. What are they using instead? Did you know that the lithium-ion battery was invented by a fellow Longhorn?
CNG is quite good where supply is cheap but only for "route" vehicles. The UPS truck being a good example but also city buses and garbage trucks. The limiting factor for CNG is two fold: it must be stored in a cylinder owing to the pressure required. It takes up too much room in a car trunk and a good bit of a pick up bed. The other challenge is fueling infrastructure. If a vehicle does not return to a central facility each day it is impractical to set up CNG for long haul purposes. Electric is available everywhere there is an existing gas/diesel fueling facility. Adding chargers is much simpler and cost effective. Also, because charging an EV takes a little more time than filling a tank with gas, retailers like it very much. People stop and eat. They shop. Think Buc-ee's.