Mineral Rights

[cisaacs]

An elderly relative, a former farmer who lives in Camrose, owns mineral rights to a quarter section nearby. An oil company is currently leasing the oil rights. Someone has offered to buy the mineral rights. I've read the landowners guide on mineral rights written by Alberta Agriculture which was very useful and now am looking for price information. Can anyone tell me where to locate information on what the value of these rights might be. With thanks. C. Isaacs cial@on.aibn.com

[tdarling]

As I understand this, mineral rights are commonly leased for varying periods of time, often 3 years. Purchase and sale of these rights is strictly 'market driven.' One way to calculate a starting price might be to consider a series of future leases (based on the value of past leases) and use the Net Present Value (NPV) technique to calculate an approximate price. Note that this would be rough figuring! In the end, these mineral rights are worth whatever you can get for them. There is an interesting 'Energy Connection' discussion web site where I found quite a few people discussing this very question. Here's the link. http://tipro.com/wwwboard/index.html Anyone else have any experience with this?

[haniford]

There is in Calgary a society that may be able to refer you to persons that may be able to help you. It is: Canadian Association of Petroleum Landmen. Phone: 403 237-6635, Fax: 263-1620.

[RICHARDJ]

Keep this in mind lease only a selected zone example 600 meters to 800 meters. This is what King Ralph Does. Another thing native bands in there leases get a percentage of the barrels produced from the wells. You would likely need to set up some way of measuring production, don't trust the companies figures. Some oil companies steal from other oil companies in joint ventures if the other company in not paying attention. A good contant from more information Might be Pioneer Land Services Calgary Or Olds College, they offer a 2 yr Land Agent Course. Best of luck.