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joeltrout
Light Sweet Crude
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Joined: Sep 19, 2007
Posts: 1317
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 Posted: Tue Apr 01, 2008 4:54 pm Post subject: Re: An unexpected move |
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| Pops wrote: |
Will you have mineral rights?
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If you do not have mineral rights, it would be worth your while to get those even though they might be costly. Mineral owners have surface use rights which typically dominate the surface owner's rights. The mineral owner can use as much surface as reasonably needed to access their minerals. As you know Oklahoma is very drill friendly compared to most states.
For example, if you own the surface and planted a large garden. Then the mineral owner leased their minerals to an O&G company they can drill a well in the middle of your garden.
Just something to think about.
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Pops
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Joined: Apr 03, 2004
Posts: 6501
Location: My Grandkids' Farm
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| Posted: Wed Apr 02, 2008 9:57 am Post subject: Re: An unexpected move |
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| Pops wrote: | BTW, don't worry about tornadoes, I have it on good authority they are a once in a few hundred year event even in the Alley.
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Not to say you might not need to crawl under stairs like we did day before yesterday... 
We really like where we wound up better but would probably have bought around Sweetwater had it not been for the mineral rights issue.
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madison
Heavy Crude
Joined: Mar 12, 2005
Posts: 255
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| Posted: Thu Apr 03, 2008 4:19 pm Post subject: Re: An unexpected move |
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Congratuations!
I hope it all works out for you guys!
:D |
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joeltrout
Light Sweet Crude
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Joined: Sep 19, 2007
Posts: 1317
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| Posted: Thu Apr 03, 2008 4:23 pm Post subject: Re: An unexpected move |
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As long as you are in Norman and not in Moore then you don't have to worry about tornados.
For some reasons tornados don't touch Norman. Many think it has something to do with the river but no scientific data to support anything. I had several friends graduate from the meteorolgy program at OU and they cannot figure it out. Moore has been hit big with tornados but Norman always escapes.
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emersonbiggins
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Joined: Jul 10, 2005
Posts: 5048
Location: Dallas
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| Posted: Thu Apr 03, 2008 4:26 pm Post subject: Re: An unexpected move |
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| joeltrout wrote: |
If you do not have mineral rights, it would be worth your while to get those even though they might be costly. |
No doubt. The 5-year leases for mineral rights in eastern Oklahoma are 2-3x the cost of the land itself. 
PrairieMule has some land out that way; "how YOU doin'?" 
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joeltrout
Light Sweet Crude
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Joined: Sep 19, 2007
Posts: 1317
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| Posted: Thu Apr 03, 2008 4:46 pm Post subject: Re: An unexpected move |
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| emersonbiggins wrote: | | joeltrout wrote: |
If you do not have mineral rights, it would be worth your while to get those even though they might be costly. |
No doubt. The 5-year leases for mineral rights in eastern Oklahoma are 2-3x the cost of the land itself.
PrairieMule has some land out that way; "how YOU doin'?" |
Check out some of the prices for these state lease sales.
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joeltrout
Light Sweet Crude
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Joined: Sep 19, 2007
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| Posted: Thu Apr 03, 2008 4:49 pm Post subject: Re: An unexpected move |
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In the Jan 16, 2008 sale 4 properties went for over $15,000 PER ACRE!!!
That my friends is a lot of money. And that is only to lease. If they produce then you get a royalty on top of the $15,000/ac.
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emersonbiggins
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Joined: Jul 10, 2005
Posts: 5048
Location: Dallas
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| Posted: Thu Apr 03, 2008 4:53 pm Post subject: Re: An unexpected move |
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Thanks for the link! Very interesting.
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"It's called the American Dream because you'd have to be asleep to believe it."
George Carlin |
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joeltrout
Light Sweet Crude
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Joined: Sep 19, 2007
Posts: 1317
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| Posted: Thu Apr 03, 2008 4:59 pm Post subject: Re: An unexpected move |
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| emersonbiggins wrote: | | Thanks for the link! Very interesting. |
Its very interesting but more importantly extremely valuable for mineral owners. If you can look up online that a company paid $8,000/ac. for the land next door to you then you can get at least that price and usually much more.
The problem is many mineral owners dont know anything about the oil and gas business and will lease their land for $150/ac, 1/8th royalty and 5 year lease.
Never lease for more than 3 years and never lease for less than 1/5th royalty. If possible do 1 or 2 year lease terms with NO option to extend.
joeltrout |
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