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Question
I inherited a very small (.00098600) mineral right that has been leased and pays since the 1940/1950's.  I receive approx $300 yearly
but have just received a offer of over $9000. for my rights.  I have
held them since middle 1970's and don't know if they are fixing to
bring in new wells or something. If they do would they have to re-lease or pay more or would it pay the same as the present lease. I have heard they are drilling in the same area but that doesn't mean they will bring in a new well does it? I am tempted to sell
but need these questions answered before I can decide.
         Thanks, Cindy

Answer
Hi Cindy:

Thank you for your question.

The first thing I would do, would be to research what other mineral rights are being purchased in and around your area, if that is possible.

That is correct, regarding the well. Just because drilling companies are drilling in the area does not necessarily mean a new well will be added to the track.

Finally, you may decide to eventually sale but you may be able to hold out and get more then the $9K offered. You could always try to negotiate a hire offer and let the company know you would like to negotiate on price.

Thanks again.  

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Brian Robinson, J.D.

Expertise

Questions related to Oil and Gas Exploration and Production.

Experience

More then 13 years handling matters involving: •Joint Operating Agreement Preparation and Reviews •Farm-In and Farm-Out Agreements •Assignments •Purchase and Sale Agreements •Due Diligence •Research •Data Room Development •Divestitures •Title Curative •Oil and Gas Lease Management •Negotiations •Run Sheets •Pipeline Right-of-Way Acquisitions •Unpaid and Unclaimed Royalty Solutions

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I'm the managing member of Innovative Contracts Consulting LLC, which has developed its oil and gas professional service capabilities over many years and is able to provide subject matter expertise in land and other related oil and gas upstream services. We provide our clients with experienced leadership and a team of go to land and oil and gas professionals that have expertise in all the producing regions of the United States, the Caribbean and in certain offshore locations in Central and South America.

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Juris Doctor, University of Kansas School of Law Business Administration (BBA), Texas Wesleyan University

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