Mineral Rights

[FarmerSmuck]

Need some advice. A potash company has approached us about leasing our potash mineral rights on 5 quarters of land. I have no clue. Should I get a land lawyer to look it over. We just inherited the land two years ago.

[farmaholic]

Are you going to be in a producing area? Are they only leasing on speculation? Is it the company that will actually be doing the producing? How long should you sign for and is there a deadline for development. Probably worth professional advice so its done correctly. Nothing on our "doorstep", potash test holes drilled on the fringe of our farm. Some oil wells popped up 15 miles away and one closer....but we are on the outside looking in with no experience at this point, so not really qualified to give advice.

I think this type of thing can be a game changer for people. Probably worth spending a few bucks if you think they will actually start producing and paying. I don't think you can hold them ransom for alot more than others got paid but maybe you can at least ensure you won't get less?

Best of luck, I hope it happens for you.

[FarmerSmuck]

We are in the production area. And yes it's Agrium from Delisle contacting us. We are only 10km away from the mine. They want a answer soon, because if we don't sign they will just mine around our land.

[oneoff]

Its probably an 80 ear development period.

Probably more correct to say they will initially mine in other directions and know full well that the estates and new owners to follow in an 80 year period provides an ample time to make a deal with someone (for your interests).

Your don't have enough good cards to win (or even be in the game) ...yet.