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Oil/Gas/mineral rights, term royalty


Any idea what a fair selling price would be for mineral rights on 90 producing acres in Pittsburg County, OK? (Section 27, Township 7 North, 3/16th lease). Thank you.

The metric used to determine is a certain number of months times the average royalty over the last year.  For example if your royalty averaged $50 per month then you would multiply $50 x 36 months (or 48 or 60) and that would be the amount you would seek for the sale of your royalty.  I would double that asking price if they wanted to purchase the current royalty as well as the future right to any other development by purchasing all the mineral estate.

I would suggest that you sell them the rights only to the current royalty and when the existing wells are no longer producing the mineral rights would revert to you or your heirs.  You would tell them you will agree to the sale as a "Term Royalty" sale rather than a "mineral" sale.  It all depends on your need/desire for the immediate cash.  


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Cliff Williams


I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.


I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

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