Replies to This Discussion

Permalink Reply by Don Howard on July 27, 2008 at 17:13

Diane: Are you saying you own 26 mineral acres? (208/8)........also Sec.;Twn:R would
be helpful.

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Permalink Reply by Diann Walker Coleman on July 28, 2008 at 11:33

yes, 1/8 of a 120 a. tract, leased to Encana, and 1/8 of a 98 a. track, leased to Empresa"before" the Haynesville Shale blitz, unfortunately for me..

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Permalink Reply by Charles Burwell on August 1, 2008 at 3:58

Diann what sec. township and range?

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Permalink Reply by Diann Walker Coleman on August 1, 2008 at 6:40

section 28, township 13 north, Range 9 west= 120 a. (own 1/8) section 4, township 14 north, range 10 west-98 a. ( 1/8 ownership)

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Permalink Reply by Gone Fishin on August 1, 2008 at 4:18

why on earth would you sell instead of lease?

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Permalink Reply by Diann Walker Coleman on August 1, 2008 at 6:44

Simple answer.. OGM rights shared with much younger partners than myself, and lease signed just 2 years ago for less than $200 a...Missed big time . At my age, sort of a bird in the hand mentality..

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Permalink Reply by Diann Walker Coleman on August 1, 2008 at 6:48

Thanks for cautionary advice...In my case, it is all about how much per acre an outright sale would bring. Have been offered $20,000 per but know that is too low..Just keeping an open mind, but appreciate your concern.

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Permalink Reply by chris on August 1, 2008 at 4:40

Ususally companies will pay the equivalent of 90 months of production. This should be in an upfront lump sum payment. Alot of people prefer to sell their mineral rights after they lease, especially in La. Once you receive your bonus, some do not want wait for their money, some need cash right now, and it saves headaches for probates, wills and other heirship. It is definitely not for everyone but there are some advantages. And in Louisiana if there is no production on the land after 10 years, then the minerals revert back to the surface owner.

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Permalink Reply by Gone Fishin on August 1, 2008 at 4:54

make sure you read this from the LA times. look at what they say he may get in royalty per year. Remember, your family could benefit from this for generations to come. I dont know your situation but dont rush your decision and dont trust anyone.

http://mobile.latimes.com/detail.jsp?key=173329&rc=nation&f...

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Permalink Reply by Cathaus on August 1, 2008 at 5:03

Way to go Coonman.
You may end up with so much money that we will have to call you Mr. Coonman!

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Permalink Reply by chris on August 1, 2008 at 5:08

90 months comes from the well producing and the person gets monthly checks. After that most companies will multiply that number by 90 and make an offer. As with any business deal, please make sure you do your due diligence. Its a little tougher to establish value without production already established on the property.

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Permalink Reply by insomniacnla on August 1, 2008 at 5:30

Yes, be very careful. I received an offer to purchase my mineral rights and it also included a check. The letter stated that I would receive 30 months of current production, and that I could keep the check. The company would look at the current production and if the production totals more than the amount of the check, that they would send me another check for additional money after I sign and return their Mineral Deed. In very small print, it was stated that if the current production was less than the check, that I would receive no more money. The check was for $250.00 and there was NO production in my section. What the agreement actually meant was that I would sign their Mineral Deed and sell them my mineral rights and receive no additional money other than the $250.00! It was a scam but one that is legal and if I had agreed, there would be very little that I could do. I would not own my mineral rights any longer.

Be very careful, use an attorney.

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