Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on November 19, 2008 at 14:13

Thats right KB, if you have a 22.5% royalty they will buy that from you and you will get nothing from the shale but what they paid. Everyone needs to listen to this, if you take this deal you will get no royalties from your lease.

• ▶ Reply

Permalink Reply by The_Baron on November 20, 2008 at 4:17

You can sell part of your Royalty.

It depends on your situation. Whats more important $1 today or $10 over the next ten years?

YOu could sell 1/4 of your royalty. Have your cake and eat it too. Also, future royalties are unknown. Money today is guanteed. A young 30 somthing might want to wait, while a couple in their 60's might want the money now.

• ▶ Reply

Permalink Reply by jffree1 on November 20, 2008 at 6:30

GoshDarn,
I have a question: If you are retirement age and have an choice of how to recieve your retirement income as a) a lump sum settlement where you get all you are going to, up front or b) a monthly payout over time (however long you live after retirement, say 20 years, assuming you retire at age 65), which would you choose?

Which way would you benefit the most?
a) Payment right now
or
b) Deferred payment over time.

That is the question that anyone should ask themselves before even considering selling their minerals. There are circumstances which justify selling, while maybe not all, but a portion of those minerals. The reasons for doing so are as many, and as varied, as the owners of the minerals are.

It is a personal choice and should not be decided frivilously, as the consequences could be huge, whatever one may decide to do with THEIR minerals.

• ▶ Reply

Permalink Reply by The_Baron on November 20, 2008 at 6:43

Well said. But don't forget, taking the deferred choic is gamble that production will occur in the first place. Take into account, not only if you want hte money now or over time, but the probability of receiving royalties in the first place.

A mineral owner in Elm grove will have a much diffrent desesion than one in the south and of Sabine Parish.

• ▶ Reply

Permalink Reply by jffree1 on November 20, 2008 at 8:32

Thank you, my point exactly! The retirement analogy was used because some people (not you Gosh Darn) might find it an easier example to grasp than well production/royalties. Although some on this site have vast knowledge and share it freely (which we all appreciate) there are others who never dreamed they'd ever be invoved in something like this, don't know anything about minerals or leasing or tax ramifications or whatever. I just think we need to examine the issue from all possible angles.

• ▶ Reply

Permalink Reply by The_Baron on November 20, 2008 at 8:40

At least for now. We'll see what our new congress does to capitol gains.

Permalink Reply by Skip Peel - Mineral Consultant on November 20, 2008 at 8:43

Long term capital gains (assets owned two years or longer) are taxed at 15%.

Permalink Reply by jffree1 on November 20, 2008 at 8:44

Gosh Darn,
I readily concede that location and proximity to proven minerals are both extremely important considerations and, in your particular case, I don't blame you a bit for your attitude. Your circumstances don't apply to land in more marginal areas (did I say fringes?) of this play which may or may not prove out over time. It is a bigger gamble in those areas and I, for one, have actually considered selling a portion of my minerals as a hedge, if you please, against the possibiliy of not getting a lease at all.

• ▶ Reply

Permalink Reply by Bobi Carr ("parker") on November 20, 2008 at 6:59

Jim,

One reason to consider selling a portion of mineral rights would be the tax advantage. Who knows how long we will have such low capital gains taxes.

• ▶ Reply

Permalink Reply by The_Baron on November 20, 2008 at 8:43

The same buy for the same reason people buy stocks.

sometimes you win, somtimes you loose it all (Enron, Leymon Bros.....)

• ▶ Reply

Permalink Reply by Bobi Carr ("parker") on November 23, 2008 at 7:40

Michael,

I wouldn't take any offer until I spoke with 20oaks.com.

WHO is the company that you posted? They don't give much information about themselves.

• ▶ Reply

Permalink Reply by Bobi Carr ("parker") on November 25, 2008 at 4:57

Ellis,

Yeah. right. At an address like live.com, we are supposed to believe that this is a legit business insead of a bottom feeder.

Sorry but no fools here.

20oaks.com is a legit mineral buyer. Their website says WHO they are and what they do.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• …
• 6
• Next ›
• Page