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Max Online: 16728 @ 03/25/12 08:51 AM
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#7105095 - 03/08/18 01:44 PM Hunting property and mineral rights valuation
JonPace Offline
Outdoorsman

Registered: 02/24/10
Posts: 72
Loc: Coleman County
Hey everyone,

I'm interested in purchasing a hunting property in Coleman County, but it doesn't come with mineral rights. If it wasn't in an area with production... I'd be inclined to move forward. My main concern is buying the property and then having someone drill on it in the future without my control. Not intending to do anything with the mineral rights... just don't want anyone coming on the land and messing with my hunting!

I made an offer for $100/acre to the owner of the mineral rights, but the owner declined. Since it's a non-producing property... I'm having trouble figuring out what the value is before making another offer. Anyone have any idea how to value mineral rights? Is there someone I can talk to who specializes in mineral rights values on non-producing properties?

Thanks!


Edited by JonPace (03/08/18 01:57 PM)

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#7105102 - 03/08/18 01:55 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
scalebuster Offline
Veteran Tracker

Registered: 11/25/10
Posts: 3347
He’s probably not going to sell his mineral rights. I wouldn’t.

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#7105116 - 03/08/18 02:03 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
nate33 Online   content
Tracker

Registered: 11/16/16
Posts: 534
Lots of times the mineral rights are not for sale,, I think I"d ask the guy if he would sell and how much he wanted. Let that be the starting point. Last year I got paid $300 an acre for a lease in La.- Tuskalusa trend.- ( it was a 4 yr lease) ----------- I cant imagine taking less than $1000 an acre to sell the rights.

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#7105117 - 03/08/18 02:03 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
JonPace Offline
Outdoorsman

Registered: 02/24/10
Posts: 72
Loc: Coleman County
He's willing to sell the mineral rights, but won't give a price. Just wants me to "make an offer" - figured I'd try to find the fair market value before making the next offer...

There is production in Coleman County but doesn't seem to be much in the immediate area. There is no lease on the land. I assume if I was to move forward... even without a lease... he still has the right to lease it and have someone drill?


Edited by JonPace (03/08/18 02:06 PM)

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#7105120 - 03/08/18 02:07 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
TxAg Online   content
Extreme Tracker

Registered: 01/15/07
Posts: 3715
Loc: Live in Katy, Hunt in Llano Co...
Many properties don't convey the mineral rights (value of what is in the ground). But, see if you can acquire the Surface rights. By my understanding that will give you some control and say over what actually comes onto the property.
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#7105121 - 03/08/18 02:11 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
nate33 Online   content
Tracker

Registered: 11/16/16
Posts: 534
"Is it for sale?" -------- answer --- make me an offer ------ translation,, no, its not for sale.

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#7105131 - 03/08/18 02:20 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
Herbie Hancock Online   content
Veteran Tracker

Registered: 08/23/16
Posts: 2388
Loc: Cypress, Texas
It will help on your end to find out the leasing history/production of the property and in the immediate area. Also are you sure that he owns the minerals and if so what percentage does he own?

Also if you can't get the minerals when he sells you the property see if he will waive his rights of ingress and egress, just to see what he says. Depending on the size of the property will help you with that.

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#7105138 - 03/08/18 02:23 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
JonPace Offline
Outdoorsman

Registered: 02/24/10
Posts: 72
Loc: Coleman County
Great feedback guys. I do know there was a lease on the property 20 years ago but none since then. The person selling it doesn't own the minerals, but the real estate agent put me in contact with the owner who does. The mineral rights owner had the property in the family since the 50s so it hasn't changed hands much.

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#7105150 - 03/08/18 02:37 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
TexasKC Online   content
Veteran Tracker

Registered: 12/30/12
Posts: 3081
Loc: Houston & Lexington, Texas
Talk to a lawyer who is knowledgeable about mineral rights.

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#7105153 - 03/08/18 02:41 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
JonPace Offline
Outdoorsman

Registered: 02/24/10
Posts: 72
Loc: Coleman County
Already in contact with a lawyer. Was hoping to find someone to simply price the mineral rights smile


Edited by JonPace (03/08/18 02:48 PM)

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#7105166 - 03/08/18 02:56 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
TexasKC Online   content
Veteran Tracker

Registered: 12/30/12
Posts: 3081
Loc: Houston & Lexington, Texas
For what it's worth we bought a place several years ago that came with a very small portion of minerals. I want to say it was 0.75%. There were 3 wells covered by the mineral rights and our production checks were usually around $200 per month. With every check came a record of what the other rights owners received. The majority owner was getting around 6k per month. My point is that I would never buy a property that didn't come with some portion of the minerals and I doubt if anyone would sell their rights if there is production in the area.

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#7105184 - 03/08/18 03:11 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
Herbie Hancock Online   content
Veteran Tracker

Registered: 08/23/16
Posts: 2388
Loc: Cypress, Texas
I am willing to bet you will have to get closer to $1,000 an acre for the minerals if he pulled the make me an offer.

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#7105190 - 03/08/18 03:23 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
JonPace Offline
Outdoorsman

Registered: 02/24/10
Posts: 72
Loc: Coleman County
From what I can find online - there is production in Coleman County but only in the North and North West area. The area of the land I am looking at is in southern Coleman County. Makes finding the mineral rights pricing a bit of a challenge!

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#7105199 - 03/08/18 03:27 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
68rustbucket Online   content
Veteran Tracker

Registered: 10/21/08
Posts: 3014
Loc: San Marcos, TX
Don't forget the wind rights. There's wind farm activity in that area.

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#7105281 - 03/08/18 04:38 PM Re: Hunting property and mineral rights valuation [Re: JonPace]
Txduckman Online   content
THF Celebrity

Registered: 08/30/04
Posts: 14050
Loc: Big D
You could get lucky like us and have seismic lines run all across the property and they find nothing! Not lucky for our landowner but makes leasing easier with no competition!

Otherwise my buddies with land had the pads put on fences so it doesn't impact inside of the property.

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