Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on July 20, 2015 at 7:40

First you have to own the minerals to be able to sell them. The deed would need to contain language that would reserve the minerals from the sale to the grantor.

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Permalink Reply by Mary R. C on July 20, 2015 at 7:55

We own the land and the minerals and royalties, they sold some under the assumption that their minerals and royalties would still be theirs.

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Permalink Reply by Skip Peel - Mineral Consultant on July 21, 2015 at 2:01

Mary, when land is sold there must be specific language in the deed of sale reserving all or a portion of the underlying minerals.  Lacking that specific language a deed of sale transfers the mineral rights along with the surface from the seller to the buyer.

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Permalink Reply by LynniePenny on November 2, 2015 at 9:56

Skip. We're selling our land. Wanted to keep the mineral rights. We have a potential buyer who is insistent on obtaining the rights. His offers are not reflecting the value of the rights.

But wait. I don't know the value of the rights. My property lies in the Tuscaloosa fairway. I've used some assumptions to calculate a potential royalty. How do I turn that number into a sell price?

I'm searching and searching and other than the estimate calculators for oil and gas royalties, I cannot find a sell factor.

Also. We have about 10 acres. These calculators estimated about $1300/month oil and $750/month gas. Does that sound close??

Thanks a bunch. Hopefully you can help a non-oil girl out.

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Permalink Reply by Skip Peel - Mineral Consultant on November 2, 2015 at 10:27

If you don't have TMS production on your land or on immediately adjacent lands you are unlikely to be able to defend a royalty projection regardless of its basis.  There are other means to calculate mineral value buy none are definitive.  When you have a situation like this it is often best to negotiate a sale that only conveys some part of the mineral right.  For example how much an acre would the prospective buyer pay for a quarter interest?  A half interest?  Mineral rights are traditionally divided into eighths.  So you could sell anywhere from one eighth to seven eighths.  Mineral rights value is in the eye of the beholder.  Anyone interested in TMS minerals at this point would have to be a real optimist.  Good Luck.

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Permalink Reply by LynniePenny on November 3, 2015 at 4:41

Thanks!!

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Permalink Reply by Seimond S Evans on August 20, 2015 at 20:04

is it true according to Louisiana Mineral law that the rights come back to the original owner after 10 yrs. or that the original owners are involved for the first 10 yrs??

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Permalink Reply by Skip Peel - Mineral Consultant on August 21, 2015 at 0:26

Selmond, see the last to sections of by Mineral Fundamentals blog.  Use this link:

http://www.gohaynesvilleshale.com/profiles/blogs/fundamentals-of-mi...

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