I was contacted by a mineral company earlier this month. They want me to sell the rights to any minerals found on my property ( or 2000 feet below my property) during their mining. They offered me 10K up front or royalties throughout the entire life of the mine which is expected to be around 10 years. First off, does anyone have experience with this? Should I sell the rights or should I hold out for a better offer? Should I take the cash up front or the royalties? Any help is greatly appreciated.
talk to a lawyer in your area familiar with this issue to see if the offer is legit and common practice
also be ware once you sell the rights to the minerals under the land it will devalue your land as well as encumber your land for the life of the mine they will have some what use of the land
I’d ask them what they plan to dig up and research it on the net. I have a cousin who has a few acres in Louisiana, and they drill oil on his land he gets 600/month, which after only 10 months he’ll get 6K, so in less than 2 years you could potentially make more than that 10K. I’d ask and do some research. Even if you only got $100 a month it would take only about 8 years to get 10K. However, with 10K you could invest it. I know someone who invested 10K in a stock about 2 years ago and it has become 15K in 2 years, not a bad return.
Just think though if you give up your mineral rights, it may be harder to sell your home because you’ve given them permission to be there and whoever wants to buy it next may not like the arrangement, especially if they do not get royalties. Also, you’ll have people and machines on your property all the time. Not so much people, but people will come by to do maintance on the machines etc. So think hard about it.
take the royalties each month don’t sell off, you will be better in long run, you should also try negotiating the % they want to pay you each month if they are offering 15% ask for 20%, also if they have been mining prior to you signing any papers they owe you pro rata from dated they started.
good luck
No you should probably hold out for a better offer because if their willing to pay I’m pretty sure someone else would be willing to pay more.