SCAM Offers for mineral rigths

Hammer

Veteran Member
Similar issue for me. Bunch of companies wanting to put up windfarms on farmland in Southern, IL. A few thousand a year and you can still farm the land other than an acre or so.
 

Griz3752

Retired, practising Curmudgeon
I own a 1/6 share of the mineral rights on a small parcel of land in west Texas. Royalties have been running $2000 per year on my share.
Why have we been offered from $30K to 50k per share? WTF is going on??????????
Hard to say much w/o more details like who made the offer, any conditions to it, what's on adjacent property etc., etc..
 

energy_wave

Has No Life - Lives on TB
Someone either wants what's under your land for profit, or they are locking out others from ever getting at them. Someone trying to stop oil and gas extraction in favor of EV's maybe?


 

Wildweasel

F-4 Phantoms Phorever
I own a 1/6 share of the mineral rights on a small parcel of land in west Texas. Royalties have been running $2000 per year on my share.
Why have we been offered from $30K to 50k per share? WTF is going on??????????
We get offers like that whenever there's news about predicted natural gas price increases. Somebody sees currently producing wells and wants to buy the rights before the royalties go up too high to convince a landowner to sell.

I suspect the same is the case for your oil rights. Put your ear to the ground to see if there's news in the local oil patch about an expansion of activity coming down the pike. We had a tripling or quadrupling of wells per drill pad in our area a few years back and we got several calls per week in the months before that new drilling was announced by the gas company.
 

LibertyInNH

Senior Member
Water rights, land rights, and mineral rights are so stupid in many other states, especially the west.

You either own the land, or you don't.

You either lease use of the land for a tower/antenna/sand pit/water extraction/mining or logging operation, or you don't (and therefore the right to do any of those things stays yours).

Live Free or Die.
 

TxGal

Day by day
In Central or East Texas, very, very few people own the mineral rights to their land, unless the land has been in their family for a very, very long time (generations).

As it was explained to me, way back in the day the oil companies came around and offered to buy the mineral rights from "poor, dumb" (not my words) ranchers and farmers dirt cheap, who would be swayed by a then nice-sized chunk of cash but yet still own their land (surface rights). The implication was that those owners might not have truly understood the later ramifications of selling those rights.

Even without mineral rights, folks in our region are receiving snail mail offers from 'land purchase companies' at ridiculously low prices, at least monthly. Those offers are pretty much laughable/insulting, offering a fraction of the amount the land is worth today. Supposedly 'investors' are behind those offers, and they're even for parcels of land of less than 25 acres (or fewer). Everyone we know is highly suspicious of those folks.

We're also hearing of many cases where folks are approached by neighbors (close and distant) expressing an 'interest' in knowing if a landowner is thinking of selling their land. There seems to almost be a script involved with a 'let me know first if you're planning to sell' statement. Verbatim, in each instance, almost sounds like a 'finders fee' may be involved. Something sneaky is going on, and it ain't good.
 

Txkstew

Veteran Member
My property Deed makes no mention of mineral rights, so I've always assumed I don't own them. I've had two seismic crews run cables across my property, with the last one drilling holes and setting off explosive charges. I had to sign off on the process, and got a couple of small payments. They checked my water well before and after.
 

Kris Gandillon

The Other Curmudgeon
_______________
We had some mineral rights scattered across Texas and mostly Oklahoma. We sold off the rights little by little over the last 40 years when we felt like the offer was reasonable.

We had been getting minuscule checks each year from a handful of these mineral rights leases so we decided to take the relatively big offers to sell them and run.

Total was in the mid six figures over that 40 years. We rolled the dice that a bird in the hand was worth two in the bush.

Comfortable with our decision.
 

TFergeson

Non Solum Simul Stare
As stated above, if you live on the property, do not give up any rights to your property, mineral or otherwise. Nothing good will come of it.
 

Babs

Veteran Member
Water rights, land rights, and mineral rights are so stupid in many other states, especially the west.

You either own the land, or you don't.

You either lease use of the land for a tower/antenna/sand pit/water extraction/mining or logging operation, or you don't (and therefore the right to do any of those things stays yours).

Live Free or Die.

Leasing would be the ideal way to go for the landowner. However, the mineral rights purchasers want to secure the rights, in the event the landowner decides to sell the land, so they purchase them instead. Mineral rights are often done by corporations looking to make a profit.

When you purchase real estate, it comes with a "bundle of rights", i.e. mineral rights, riparian rights, the right to farm it, the right to develop it, etc.. When you choose to sell one of the rights in that "bundle", it often reduces the value of the property, or at least narrows the prospects for a potential buyer. I, for one, would never purchase a piece of land without the full bundle of rights. I would never purchase a piece that didn't come with mineral rights, for all kinds of reasons, but many people do.

The Sierra Club is notorious for buying up the development rights of cash strapped land owners, and farmers. The farmers think it's a good deal because they still own the land, and can use it as they always have. Then, when the owner needs to sell the land, it's almost worthless. Naturally the Sierra Club will purchase the land for pennies on the dollar. They now have the full bundle of rights to the land, and can sell it for huge profit. And, they do. It's predatory behavior.

To the original poster: If you merely own the mineral rights, then you may want consider weather it would be in your own best interest to go ahead and sell those rights, at this time. Although it might be the Chinese making the offer. If you own the land, I would never sell the mineral rights. Just my 2 cents...
 

Wildweasel

F-4 Phantoms Phorever
Leasing would be the ideal way to go for the landowner. However, the mineral rights purchasers want to secure the rights, in the event the landowner decides to sell the land, so they purchase them instead. Mineral rights are often done by corporations looking to make a profit.

When you purchase real estate, it comes with a "bundle of rights", i.e. mineral rights, riparian rights, the right to farm it, the right to develop it, etc.. When you choose to sell one of the rights in that "bundle", it often reduces the value of the property, or at least narrows the prospects for a potential buyer. I, for one, would never purchase a piece of land without the full bundle of rights. I would never purchase a piece that didn't come with mineral rights, for all kinds of reasons, but many people do.

The Sierra Club is notorious for buying up the development rights of cash strapped land owners, and farmers. The farmers think it's a good deal because they still own the land, and can use it as they always have. Then, when the owner needs to sell the land, it's almost worthless. Naturally the Sierra Club will purchase the land for pennies on the dollar. They now have the full bundle of rights to the land, and can sell it for huge profit. And, they do. It's predatory behavior.

To the original poster: If you merely own the mineral rights, then you may want consider weather it would be in your own best interest to go ahead and sell those rights, at this time. Although it might be the Chinese making the offer. If you own the land, I would never sell the mineral rights. Just my 2 cents...
Selling the mineral rights or trying to keep them if you sell the property can kill deals, because lenders in many cases WILL NOT lend money for property that does not have full rights.
 

Wildweasel

F-4 Phantoms Phorever
In Central or East Texas, very, very few people own the mineral rights to their land, unless the land has been in their family for a very, very long time (generations).

As it was explained to me, way back in the day the oil companies came around and offered to buy the mineral rights from "poor, dumb" (not my words) ranchers and farmers dirt cheap, who would be swayed by a then nice-sized chunk of cash but yet still own their land (surface rights). The implication was that those owners might not have truly understood the later ramifications of selling those rights.

Even without mineral rights, folks in our region are receiving snail mail offers from 'land purchase companies' at ridiculously low prices, at least monthly. Those offers are pretty much laughable/insulting, offering a fraction of the amount the land is worth today. Supposedly 'investors' are behind those offers, and they're even for parcels of land of less than 25 acres (or fewer). Everyone we know is highly suspicious of those folks.

We're also hearing of many cases where folks are approached by neighbors (close and distant) expressing an 'interest' in knowing if a landowner is thinking of selling their land. There seems to almost be a script involved with a 'let me know first if you're planning to sell' statement. Verbatim, in each instance, almost sounds like a 'finders fee' may be involved. Something sneaky is going on, and it ain't good.
A large portion of the Kennedy family fortune comes from oil income in Louisianna where the rights were bought that way. Poor black farm families were a particular target of old Joe Kennedy's land agents.
 

Bubble Head

Has No Life - Lives on TB
Splintering mineral rights by selling a small portion renders the remaining rights useless without consent of the minority right purchased. You can't use it and still pay taxes on it. If it is in production at the time of purchase than the new owner get their allotted share.
 
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