Purchasing Minerals with Land Purchase

[Homer75]

I'm looking at purchasing land and some of the places I've seen have minerals. How would you go about pricing the minerals, I've ask about the added cost but, the realtor didn't know or really give me a straight up answer. Not sure where to go other than going to a O&G attorney first before putting an offer on the property.

[Coyote Canyon]

Mineral is considered uranium or sulfur. Something you would mine. No added value otherwise.

[Ouch]

If I were to offer to buy the minerals under your property, I would't want to pay more than 3 times what the Bonus consideration for a lease might be. HOWEVER, that doesn't necessarily translate to minerals attached to a surface transaction. Do you happen to know what OGMLs are or were most recently paying in the area?

[quarterback]

Totally depends on where you are looking. Chances are, the seller may not even have all the mineral estate themselves so that means you may have to track down the mineral ownership through a title search. If you're in an area that has experienced little oil and gas activity it might not be a very big deal. If the area has seen petroleum exploration your chances of obtaining any sizeable mineral interest with purchase of the property diminishes in proportion to the amount of oil/gas activity.

[Big pig]

If I were to offer to buy the minerals under your property, I would't want to pay more than 3 times what the Bonus consideration for a lease might be. HOWEVER, that doesn't necessarily translate to minerals attached to a surface transaction. Do you happen to know what OGMLs are or were most recently paying in the area?

This. ^
I would buy at least a 1/4 if available.

[kumathebear]

Yep

Totally depends on where you are looking. Chances are, the seller may not even have all the mineral estate themselves so that means you may have to track down the mineral ownership through a title search. If you're in an area that has experienced little oil and gas activity it might not be a very big deal. If the area has seen petroleum exploration your chances of obtaining any sizeable mineral interest with purchase of the property diminishes in proportion to the amount of oil/gas activity.

Agreed. Mineral rights in our area generally....RARELY....convey no matter the "lousy" price of natural gas. Condensate is different as oil is but without any proven history of production it's a guessing game. To "buy" mineral rights in a land purchase I personally would want to see what royalties have been paid at LEAST over the past 5 years? I get "mail" offers all the time to purchase my royalties on the old place...I just trash 'em hoping it will turn around someday? Oh, thanks again Qui......r.....NOT!

[Drycreek3189]

Just guessing here guys, but if they were my minerals under my land, I would do the pricing and you could say yes or no. That's the way selling stuff generally works.

[Burnadell]

Mineral is considered uranium or sulfur. Something you would mine. No added value otherwise.

Say, what???

[kumathebear]

?

Just guessing here guys, but if they were my minerals under my land, I would do the pricing and you could say yes or no. That's the way selling stuff generally works.

Not in this scenario....documented production is the key

[Big pig]

Are they producing? The seller could keep them until the current lease expires. Lots of ways to skin the cat.
Then the new surface owner could control the surface under his own lease.
Protecting your surface is the reason I recommend owning some.

[Lexington]

Mineral is considered uranium or sulfur. Something you would mine. No added value otherwise.

It's not only those resources, but basically anything at a depth greater than 200 yards from the surface as well such as oil, natural gas, gold, etc.

[Homer75]

The property is in a pool, not 100% on that meaning but, they mentioned minerals convey.

[Geronimo2091]

Pooled would mean that the acreage is put into a unit with other tracts of land. Look on the Railroad commission website under GIS, you will be able to locate the acreage by area, county and survey/abstract #. The API #s (well #s within the unit) will tell you the amount each Well is producing, if there are any producing.

[Big pig]

The property is in a pool, not 100% on that meaning but, they mentioned minerals convey.

If well is on another tract - Best case scenario. Share royalty, but no headaches of traffic.

[Drycreek3189]

Not in this scenario....documented production is the key

It is unclear by the OP whether the minerals are solely owned by the surface owner. If the minerals are not currently leased, and the minerals convey with the deed, why would the owner of said property not set the price ? He owns the land and 100% of the minerals unless something says otherwise.