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Started By
Message
Price of land w mineral rights v. Without
Posted on 11/12/14 at 7:52 am
Posted on 11/12/14 at 7:52 am
I know this may be vague, but How much would you say mineral rights are worth per acre on a tract of land that is 100s of miles from any of the big shale finds and in an area historically void of any type of minerals? Swamp land.
If it was listed at $4k/ac "mineral rights negotiable" what would be your play here?
If it was listed at $4k/ac "mineral rights negotiable" what would be your play here?
13
Posted on 11/12/14 at 8:01 am to Slickback
Hopefully the price of this land isn't $4k an acre...
Posted on 11/12/14 at 8:05 am to Slickback
quote:
Swamp land.
Wouldn't touch due to the wet lands act. Some company will have to pay that price to replace other wet lands in time.
If there is no drilling or well that is producing, the owner can only hold on to the mineral rights for ten years. I wouldn't pay any extra for that.
Posted on 11/12/14 at 8:05 am to Slickback
Is swamp land really going for $4k/acre?
Posted on 11/12/14 at 8:08 am to fishfighter
quote:
If there is no drilling or well that is producing, the owner can only hold on to the mineral rights for ten years. I wouldn't pay any extra for that.
And that's what's up.
Posted on 11/12/14 at 8:21 am to Slickback
We sold part (1/3 or 1/4 I can't remember) of our mineral rights while we had a drilling rig on the property for approx $400 an acre, so I wouldn't pay for the mineral rights to a piece of swamp property that has no activity in the area.
Posted on 11/12/14 at 8:36 am to Slickback
If you are considering paying anything close to asking price, make your offer with minerals included. Let them set their value for the minerals. Otherwise, buy naked and wait.
Posted on 11/12/14 at 8:44 am to Slickback
quote:
If you are considering paying anything close to asking price, make your offer with minerals included.
This. Or at least ask for 50% of the MR.
If its a dead area you'll end up owning them in 10 years anyway so I wouldn't pay much for them. What parish?
Posted on 11/12/14 at 8:50 am to Slickback
It sounds like someone is selling the current land owner a pipe dream. First, that price is too high. Second, if he wants to sell, he has to sell everything. (not actually but that should be your attitude) the last thing you want is an actual oil/shale find and then this a-hole wants to drill on top of your duck blind and you end up in a legal fight. Offer him a price that is legitimate for the area (do your research) with the mineral rights included. If they don't budge due to that one stipulation, tell them to have a nice day.
Posted on 11/12/14 at 9:05 am to Slickback
Thanks for the input. I didn't think mineral rights would be that valuable on this piece. The price is definitely high, however it is full of mature hardwood timber and there is a premium for location.
Posted on 11/12/14 at 9:25 am to Slickback
If you buy without the minerals, incorporate something like this in your deed and you won't have to worry about them drilling in your food plot.
*I am not a lawyer, but I am pretty well versed in O/G Exploration
quote:
Vendor agrees that he shall not utilize the surface of the lands for production or seismic exploration and that all
exploitation shall be done through directional drilling or under the pooling provisions of any lease granted, and
any future lease granted on the said property will contain this provision.
*I am not a lawyer, but I am pretty well versed in O/G Exploration
Posted on 11/12/14 at 10:00 am to Bussemer
quote:
Vendor agrees that he shall not utilize the surface of the lands for production or seismic exploration and that all
exploitation shall be done through directional drilling or under the pooling provisions of any lease granted, and
any future lease granted on the said property will contain this provision.
This instantly devalues the mineral rights which are not even changing hands. That's a red flag for me if I'm the seller.
Say the guy reserves the minerals, and it ends up getting leased 5 years later. If this comes up as needing to be added to the lease the landman is going to cut your bonus, and maybe your royalty because of no surface access or exploration permission. Thereby devaluing the minerals of the original owner.
He has every right to reserve him, and every right to tell you that you can't tell him how to use his own minerals.
Kind of a run on... The mineral estate supersedes the surface and that's the way it should be.
This post was edited on 11/12/14 at 10:02 am
Posted on 11/12/14 at 10:05 am to Slickback
$4g an acre?
Posted on 11/12/14 at 10:09 am to Bussemer
quote:
If you are considering paying anything close to asking price, make your offer with minerals included.
quote:
This. Or at least ask for 50% of the MR.
If its a dead area you'll end up owning them in 10 years anyway so I wouldn't pay much for them. What parish?
all of this
Posted on 11/12/14 at 11:59 am to AUCE05
quote:
Message
Posted by AUCE05
$4g an acre?
Link me hunting land within 30 minutes of Ascension Parish for less.
Posted on 11/12/14 at 12:04 pm to Slickback
quote:
Swamp land.
If it was listed at $4k/ac
I got some prime swamp land to sell you for that. You can have the minerals.
Posted on 11/12/14 at 12:06 pm to Slickback
quote:Minimal
but How much would you say mineral rights are worth per acre on a tract of land that is 100s of miles from any of the big shale finds and in an area historically void of any type of minerals?
Posted on 11/12/14 at 12:08 pm to fishfighter
quote:Yep. After 10 years of no mineral activity, the mineral rights will revert back to the current land owner
If there is no drilling or well that is producing, the owner can only hold on to the mineral rights for ten years
Posted on 11/12/14 at 12:10 pm to Slickback
How much land are you looking for? There is a couple of signs listed off of hwy 16 between French Settlement and the Diversion. I have looked online for a price with no luck, I think one is 80 acres and the other 160...
Posted on 11/12/14 at 12:10 pm to Slickback
quote:Can you give me a better location description? My firm does mineral appraisals on occassion.
Slickback
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