Mineral Rights ???

[bm-tn]

It has come to my attention that my grandmother retained mineral right to a property in Miss. My question is what is the average contract length, price for said contract per year or term, percent of payout, etc. We are in negotiations with energy company and just wondering average prices and contracts.
Thanks, Bryan

[timbertalk]

You will need an oil and gas attorney to negotiate market rates. If the company can, they will take advantage of you Beware.......

[hntrpat1]

My family use to own the chandeleur islands until Huey P Long stole them. We still own the mineral rights. But the federal government decides what it's worth. FUNK THAT

[Bercy]

Sounds like they have already found and contacted you - they always will.

General terms are 3 or 5 years, you get 1/8 or 3/16 royalty of produced, and up front of $100-200/acre. These are always subject to times/prices/size/etc.

You need to mark through a couple provisions in the contract (all of them have these provisions) -> don't warranty anything and something about contiguous land (which you don't own, so don't agree to that).

[DukGrl]

and put in the agreement that they have to haul off the boards and such from the deck when they are done and not a) bury them on your place or b) burn them on your place. We're talking about some wicked flat tires and sink holes if either of these happen...

[bm-tn]

Sounds like they have already found and contacted you - they always will.

General terms are 3 or 5 years, you get 1/8 or 3/16 royalty of produced, and up front of $100-200/acre. These are always subject to times/prices/size/etc.

You need to mark through a couple provisions in the contract (all of them have these provisions) -> don't warranty anything and something about contiguous land (which you don't own, so don't agree to that).

Bercy, gen. terms and royalty are in line with what we have been offered. I will check on the language in the contract.
Thanks!

Bryan

[Agua]

Be aware that when market prices are high, the production will be low and when market prices are low, the production will be high. At least that was our experience.

[South Woods]

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