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Kern County, Ca Minerals

Having a dispute with a tenant or landlord? Rental Law discussion

Kern County, Ca Minerals

Postby Johnathan » Sun Dec 04, 2016 8:57 pm

Hello

I have some mineral rights in Kern county CA, i have been contacted about selling them, the tracks they wont they said there paying about $250 an acre, is this anything you can help me with our tell me what research I can do to find out more about this.
Johnathan
 
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Joined: Sat Jan 04, 2014 1:52 am

Kern County, Ca Minerals

Postby Aronos » Sun Dec 04, 2016 11:00 pm

Hello

I have some mineral rights in Kern county CA, i have been contacted about selling them, the tracks they wont they said there paying about $250 an acre, is this anything you can help me with our tell me what research I can do to find out more about this.
Aronos
 
Posts: 44
Joined: Wed Jan 22, 2014 5:57 am

Kern County, Ca Minerals

Postby Darvin » Mon Dec 05, 2016 10:00 am

Alex, I'm really not that familiar with valuing California mineral rights, though I think the western part of Kern County is where most of the county's production is. You'd probably be able to find out as much as I using Google to search for the state agency that regulates oil and gas production in California. I believe this one is the main State agency however: http://www.conservation.ca.gov/dog/Pages/index.aspx

Often on these state sites, you can do a search for production in different parts of the state, or at least get an idea of what's going on in your area. Being a government site, it's likely to be very large, so you may have to look around some to find what you're looking for. They also have a district office in Bakersfield that might be able to give you some information: District No. 4 4800 Stockdale Hwy., Suite 417, Bakersfield, CA 93309

Phone: 661-322-4031

Fax: 661-861-0279

Likely that agency keeps tabs of where the recent drilling activity is occurring. If you find your minerals are in the middle of a "hot" field, then $250 would be pretty low to buy your minerals. I am wondering if perhaps they offered to LEASE them, rather than buy them? $250 might be okay for a lease, depending on the activity in the area, but I'd be cautious about selling for that. If it was an actual offer to buy your minerals, my next question would be: Why sell? If someone is offering to buy them, you could likely find someone willing to LEASE them as well. Leasing instead of selling would allow you to make some money and still keep your minerals. If it is in fact a purchase(rather than lease) offer you've received, you can bet they're offering to buy them for a reason; likely because there IS some activity near your minerals. I always suggest to people not in the business that they get at least a few offers from reputable buyers before agreeing to sell their minerals to anyone. Having offers from several unaffiliated buyers helps to determine their "true" market value. Granted, it's kind of tough to know who the "reputable" buyers are, which is why I often get contacted by people asking me to help them find a reputable buyer. Before you sell however, I'd try to find out what's going on in the area. You might decide it's better to lease, rather than sell them outright. By leasing your rights to an oil company for three years or so, you'd get a lease bonus payment of a certain amount per acre, plus you'd still own the minerals. Still owning the minerals would entitle you to some royalty payments if the lessee drilled a producing well. If you sell them, you'd get a larger payment up front, but you'd no longer own the minerals and therefore would not have the possibility of receiving royalty payments. Some people like the larger up front payment and so would rather sell than lease, but selling is something you should give some thought to before making a decision. Hope this helps you out.

Frederick M. "Mick" Scott CMM RPL

Timbercreek Mineral Company, LLC
Darvin
 
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