AlamoShooter Posted January 4, 2011 Share Posted January 4, 2011 Well lots of people in the know here. Severed property mineral rights in central Colorado. Just starting my internet search on what it worth per acre. We have 19 acres west of Pueblo and the owner of the mineral rights has made an offer to sell. years back it was worth less than $10 an acre not worth the worry and cost to do the paper work to trace out the owner. now we have a road and are making plans when we get this letter that if we pass on buying the mineral right is will go out to bid offers. makes a reference to the history of Silver mining in Silver-Cliff Colorado. Wait and see? or make an offer off of old price lines. my Wife is ready to panicky over it. Link to comment Share on other sites More sharing options...
CocoBolo Posted January 4, 2011 Share Posted January 4, 2011 Well lots of people in the know here. Severed property mineral rights in central Colorado. Just starting my internet search on what it worth per acre. We have 19 acres west of Pueblo and the owner of the mineral rights has made an offer to sell. years back it was worth less than $10 an acre not worth the worry and cost to do the paper work to trace out the owner. now we have a road and are making plans when we get this letter that if we pass on buying the mineral right is will go out to bid offers. makes a reference to the history of Silver mining in Silver-Cliff Colorado. Wait and see? or make an offer off of old price lines. my Wife is ready to panicky over it. Alamo - It may very well not be important what it is worth, however, consider that I buy the mineral rights then I decided to start excavating, just dig the place up! So for $190 it could offer a lot of piece of mind! Recent events in China (rare earth quota's) tend to make one think that the future may be a lot differnt than the past but not sure it will be significant in your life time, but if you consider that in 1910 only one in 8 houses had a bath tub who knows what things will be like by the time your grand kids are our age? Link to comment Share on other sites More sharing options...
MarkCO Posted January 4, 2011 Share Posted January 4, 2011 I'd go to the Colorado Oil and Gas website: cogcc.state.co.us (It seems to be down right now) and go to the maps search page. Find your property on the map and then search around your property to see what formations you might be on and or what nearby propertires are producing. That should give some indication as to whether the rights are worth anything or not. With 19 acres, if an oil or gas company wanted to pop a well on there, you have enough acrage to not be a worry. A mine, probably not. Link to comment Share on other sites More sharing options...
AlamoShooter Posted January 4, 2011 Author Share Posted January 4, 2011 yes for any thing close to $10 an Ac we would jump on it, But bet they are going to try and get us to go much higher the 19 ac covers the end of a small mountain , its shaped like a slice of Pie with the point at the top and has 750 + feet of elevation gain. The blasting we had done this year exposed some hard mineral color that seemed heaver than Pyrite and did not float when I washed it in a plate. part of the work this year with the equipment after the Rocky Mountain 3gun was to improve the road and cut out a place level to set up a water well drilling rig. = You gotta scratch around just to set a chair level. every place you sit has a good view though, and we don't want it ruined Link to comment Share on other sites More sharing options...
CocoBolo Posted January 4, 2011 Share Posted January 4, 2011 yes for any thing close to $10 an Ac we would jump on it, But bet they are going to try and get us to go much higher the 19 ac covers the end of a small mountain , its shaped like a slice of Pie with the point at the top and has 750 + feet of elevation gain. The blasting we had done this year exposed some hard mineral color that seemed heaver than Pyrite and did not float when I washed it in a plate. part of the work this year with the equipment after the Rocky Mountain 3gun was to improve the road and cut out a place level to set up a water well drilling rig. = You gotta scratch around just to set a chair level. every place you sit has a good view though, and we don't want it ruined Well I miss understood I thought that the owner of the rights had made an offer to sell, an offer to sell ususally has a price if not then just express an interest and let the haggling begin, be tough know when to walk away. After all how many interested buyers are there? Link to comment Share on other sites More sharing options...
ima45dv8 Posted January 4, 2011 Share Posted January 4, 2011 Mark's post struck a chord. Do a search as he recommends and see if there's even a remote possibility of oil/gas (most likely gas) production in the area. When I was in the patch I saw a number of people who at best got some dollars for access (by a drilling company) because they owned the land, but no hope for long term interest because they didn't own what was under it. If you can secure the mineral rights at a reasonable price, it's worth considering. May not bring long term fortune but may at least have your a$$ covered. **I remember a friend's parents crying in their cornflakes one morning when they got the word that their monthly royalty checks would be cut back to $42,000.00. I wanted to scream at them, "Boo hoo! At least you had the sense not to sell the mineral rights or your monthly check would be $0.00!" ===================== On a lighter note, I remember an old man who took one month's check and bought a new Ford dually. All the bells and whistles. He had his sons load it with cement blocks, tie a rope through them, and cinch it off to a tree. After he pulled the load of block out of the bed 3-4 times, we asked him why he was tearing hell out of the bed. He said it was so his hogs could get a grip and not fall down while riding in the back. It's worth noting that while having that burning concern in his mind, his family STILL did not have running water in the house. Link to comment Share on other sites More sharing options...
Chills1994 Posted January 4, 2011 Share Posted January 4, 2011 Link to comment Share on other sites More sharing options...
AlamoShooter Posted January 4, 2011 Author Share Posted January 4, 2011 Not any chance of an oil or gas well , its mining that concerns us. Just found out the person that contacted us only owns 50% of the mineral rights. We don't want a scar on our land Link to comment Share on other sites More sharing options...
ima45dv8 Posted January 4, 2011 Share Posted January 4, 2011 Just found out the person that contacted us only owns 50% of the mineral rights. We don't want a scar on our land With them having 50%, can you stop it? If not, can you get in on it (financially)? I know that sounds callous, but if it's going to happen anyway, better to benefit than just sit back and hold a fistfull of crying cards. Link to comment Share on other sites More sharing options...
Joe4d Posted January 4, 2011 Share Posted January 4, 2011 In my area the thing you have to watch out for is Timber rights, usually much easier to find a piece of land without any other interests than to try to fix it after the fact. Link to comment Share on other sites More sharing options...
Sean Gaines Posted January 4, 2011 Share Posted January 4, 2011 Not any chance of an oil or gas well , its mining that concerns us. Just found out the person that contacted us only owns 50% of the mineral rights. We don't want a scar on our land Well that can happen if you own the surface only, what you ought to be doing is finding out about the seller of the mineral rights, see if he is on hard times, or if he is bluffing. this is pretty hard to do, but it will pay off in the long run, but try to find out as much information that you can. Right now commodities are doing really well, and we have kind of a new gold/silver rush. He could be playing you in that regard. ie: Knowing that commodities are real high right now, and he wants to sell you his mineral rights at a high dollar amount, and if you don't buy now, he is going to destroy your property and try to scare you. Mineral right are hard to determine a value, without intesive research, but even then you don't want to pay retail for it either. If they are mining around in your general area, chances are pretty good you might have a commodity under your land, which is bad luck for you. My advice to you is if the mineral interst is $10 per acre then buy it! it won't be like your out alot of money, plus your resale value is much higher if you decide to sell it later. Even at $100 per acre, I would still buy it! I won't buy land unless I can buy it all the way to the center of the earth. Just for this very reason. Link to comment Share on other sites More sharing options...
gohuskers Posted January 4, 2011 Share Posted January 4, 2011 Great catch. I was thinking the exact same thing. Might want to check with adjoining landowners and see what they've done. Give them a call or stop by for a cup of coffee - oftentimes other owners will have valuations done, attorney's provide overview of the process and paperwork, etc. This will often, with some exceptions, provide you with a pretty good estimate of your property's value while saving you the expense of having to pay for these yourself. Link to comment Share on other sites More sharing options...
Bubber Posted January 4, 2011 Share Posted January 4, 2011 Alamo, It makes a difference on how the sites are divided up in parcels. In my area we are on a 320 acre spacing in one spot which means we get 40/320 of what ever pecent they pay for royalties. 1/8 times X%. On another spot it is spaces at 640 or one section. We have just over 80 acres there but works out to the same percentage. It also goes in Zones under neath the soil when they get the permits. And as the land owner you are entiltled to damages done to your land. Need to look at many aspects to see if the royalties are worth the money. Gold and Sivler are different than gas and oil but I don't know the details. Good luck. Link to comment Share on other sites More sharing options...
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