That is the $64,000 question? The simple answer is it depends on who you talk to. The oil and gas companies make you think they are not worth very much. They make you feel like they are doing you a favor by taking them off your hands. On the other hand, your neighbor who thinks he or she knows a lot about the oil and gas business makes you feel they are worth more than they probably are because they hauled water or gravel for the oil and gas industry and that makes them an expert. Then you have your legal folks who struggle with what they are worth. It is a very confusing and complicated issue.
Be careful with what the oil and gas company representatives represent the worth to be and never rely on your buddy who is an “oil and gas expert” because he worked in the industry or because they negotiated their own lease or pipeline.
Let’s use simple logic. The oil and gas companies would not be knocking on your door and bombarding you with letters if your property was not valuable to them. That is counterproductive. They want and need your property to drill it, because they have to make money. Most of the big companies answer to shareholders and shareholders are very demanding. Large corporations are not in the charity business. They are in the profit business. But, they absolutely cannot make money for themselves or their shareholders without your property. That’s where we believe you have an advantage and are in the driver’s seat.
The happy medium is this, without your property the oil and gas companies can’t exist, and without the oil and gas companies you can’t get paid for your minerals. So what your minerals are worth depends largely on your resolve to properly and effectively negotiate with the companies who want your property. That is a very difficult thing for most people to do. Most folks feel they are powerless when it comes to negotiating the terms and
conditions of a lease. But, if you do it in a business-like, professional manner it can be done.
Don’t ever be afraid of the oil and gas industry folks, they are people just like you and me.