AC Minerals

06/22/2021

𝐓𝐡𝐞 𝐑𝐈𝐆𝐇𝐓 𝐑𝐞𝐚𝐬𝐨𝐧𝐬 𝐭𝐨 𝐒𝐄𝐋𝐋 𝐎𝐢𝐥 & 𝐆𝐚𝐬 𝐌𝐢𝐧𝐞𝐫𝐚𝐥 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭𝐬?
We deal with a lot of Mineral Interest owners, and there are some folks who don't want to sell no matter what. That's ok but that may not be the right decision for their families as Oil & Gas mineral interests are assets and just like any other asset there is ALWAYS a right price to sell. It just takes a little bit of Analysis🧐

In fact the mineral owners who sold 3-4 years ago for a good price, made the right decision. 𝐖𝐞'𝐯𝐞 𝐬𝐞𝐞𝐧 𝐦𝐢𝐧𝐞𝐫𝐚𝐥 𝐨𝐰𝐧𝐞𝐫𝐬 𝐰𝐡𝐨 𝐡𝐚𝐯𝐞 𝐬𝐨𝐥𝐝 𝐚𝐧𝐝 𝐌𝐀𝐃𝐄 𝐀 𝐊𝐈𝐋𝐋𝐈𝐍𝐆 𝐛𝐲 𝐝𝐨𝐢𝐧𝐠 𝐬𝐨 𝐢𝐧 𝐭𝐡𝐞 𝐛𝐨𝐨𝐦 𝟑 𝐲𝐞𝐚𝐫𝐬 𝐚𝐠𝐨. 🤑 One gentleman made $400,000+ when he sold 3 years ago to a mineral company 100+ acres of land, and to this day it STILL HAS NOT BEEN DEVELOPED. That land now is worth probably $1000/acre or around $100,000 today. THAT WAS A SMART DECISION BASED ON LOGIC.

So as a mineral owner, these are the things you should think about when you're approached for minerals and reasons to consider selling.

𝟏) 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐲𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐀𝐬𝐬𝐞𝐭𝐬 - By far the #1 reason to sell a PORTION of your mineral interests is to diversify your assets. If you own 100% of your minerals and that is your biggest asset, then if energy prices drop or the Nation switches to Solar/Wind power, then you're stuck with an asset that is not producing anything and may never produce something. 𝐈𝐟 𝐲𝐨𝐮 𝐬𝐞𝐥𝐥 𝐚 𝐩𝐨𝐫𝐭𝐢𝐨𝐧 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐦𝐢𝐧𝐞𝐫𝐚𝐥 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭𝐬, 𝐭𝐡𝐚𝐭 𝐦𝐨𝐧𝐞𝐲 𝐜𝐚𝐧 𝐛𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐞𝐝 𝐢𝐧 𝐚𝐧𝐲𝐭𝐡𝐢𝐧𝐠 𝐭𝐡𝐚𝐭 𝐰𝐢𝐥𝐥 𝐧𝐨𝐰 𝐚𝐥𝐥𝐨𝐰 𝐝𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐲𝐨𝐮𝐫 𝐚𝐬𝐬𝐞𝐭 𝐛𝐚𝐬𝐞. Imagine holding 50% of your minerals and having invested in the stock market and making 17% returns over the past decade while waiting for your drilling to occur. That is a SMART mineral owner.

𝟐) 𝐁𝐮𝐲𝐢𝐧𝐠 𝐓𝐡𝐢𝐧𝐠𝐬 𝐘𝐨𝐮 𝐊𝐧𝐨𝐰 𝐖𝐞𝐥𝐥 - Some people know another industry much better than the oil & gas industry. For those who are experts on rental properties, farmland, stocks, or cryptocurrencies - it makes a lot of sense to sell some or all of your mineral interests to invest in what you know. Biggest reason heirs sell their mineral interests, they can sit and wait for a well to be drilled, or make some exceptional returns in the stock market now.

𝟑) 𝐍𝐨𝐭 𝐃𝐞𝐚𝐥𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐎𝐢𝐥 & 𝐆𝐚𝐬 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 - Let's face it these guys are horrible to deal with and will rip you off any chance they get. Some folks don't want to deal with that and so they sell their interests to others who have the resources and knowledge to deal with it and take the companies to court when necessary.
There are many more reasons, but these are the BEST reasons to sell mineral interests. Keep some, sell some, and invest those proceeds to truly make a diversified portfolio for you and your family rather than carrying all your eggs in one basket

06/20/2021

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭𝐬
We find mineral owners are often confused by the different types of interests, and thought this would be a helpful image and description for each type.

𝟏) 𝐑𝐨𝐲𝐚𝐥𝐭𝐲 & 𝐎𝐯𝐞𝐫𝐫𝐢𝐝𝐢𝐧𝐠 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭
A royalty interest is the interest retained by the mineral and/or surface owner in an oil and gas lease. It typically ranges from 12.5 – 17% of the total revenue from oil and gas production that can be attributed to the lease, and there are usually multiple owners involved. The royalty interest is not subject to operational expenses (e.g., drilling and production), however it is subject to oil and gas extraction taxes and post- production costs (e.g., transportation and processing). An overriding interest is similar to a royalty interest, and is proportioned from the overall working interest; it exists for as long as the lease for the mineral rights is valid.

𝟐) 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭: 𝐎𝐩𝐞𝐫𝐚𝐭𝐞𝐝
Oil and Gas companies lease the mineral rights from the mineral owners to drill and produce the resources. They typically have the majority interest (>50%), known as the operated working interest, and make most of their income from their share in the well. They bear the daily operational duties and their share of expenses for the wells.

𝟑) 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭: 𝐍𝐨𝐧-𝐎𝐩𝐞𝐫𝐚𝐭𝐞𝐝
The owner of the operated working interest may also have other partners who own a part of the working interest, but do not directly influence the operation of the well. This is called the non-operated working interest – it is typically less than 50% of overall lease, and can be comprised of multiple partners. The non- operated working interest partners are responsible for their share of operational expenses even though they are not involved in daily well operations.

06/18/2021

https://www.wsj.com/articles/west-risks-blackouts-as-hydroelectric-power-dries-up-11624008601

Wind, Solar, and Hydro are all good renewable power sources but ALL OF THEM have reliability issues that Natural Gas does not. As a country, we need to make sure when we make energy policy decisions this is kept in mind

Persistently dry weather has choked off the amount of snowpack and precipitation feeding rivers and streams, which reduces the amount of water needed to generate hydroelectric power.

05/31/2021

UNBELIEVABLE!

In a nutshell, some cities are banning natural gas from cities to meet climage change goals. Whether you like solar or not, completely unfair to ban natural gas from cities. Let people CHOOSE their own heating and power source.

What they don't tell you about these bans is that Natural Gas (NG) is 3x cheaper than similar electricity and if homeowners are forced to "electrify" their homes from gas infrastructure, it would cost tens of thosands of dollars plus higher utility bills.

I'd rather have my FREEDOM and a world a few degrees warmer than being ENSLAVED to polticians masquarading as climate experts trying to "Save the World"

This post isn't related to our Company, simply trying to be a good human being & a responsible corporate citizen.

Major cities including San Francisco and New York have proposed measures to ban or discourage the use of the fossil fuel in new homes amid climate concerns, spurring some states to outlaw such prohibitions.

05/29/2021

𝐃𝐞𝐚𝐥𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐎𝐢𝐥 & 𝐆𝐚𝐬 𝐑𝐨𝐲𝐚𝐥𝐭𝐢𝐞𝐬 𝐑𝐢𝐠𝐡𝐭𝐬 𝐢𝐧 𝐚 𝐃𝐢𝐯𝐨𝐫𝐜𝐞 😥

Of course we will have to caveat this post - We are NOT attorneys so ALWAYS seek qualified legal advice when it comes to divorces & the splitting of assets. Also, while we are citing the general rules across the USA, some states may vary in their particular laws, so always research your own state of residence.

Across most states when it comes to oil and gas land that is involved in a divorce, the rule is that both the surface interests and the mineral interests are considered the separate property of a spouse who either (i) owned the land before the marriage or (ii) received it during the marriage by gift, will, or inheritance.

𝗧𝗿𝗮𝗻𝘀𝗹𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝘀𝗽𝗼𝘂𝘀𝗲 𝘁𝗵𝗮𝘁 𝗼𝘄𝗻𝗲𝗱 𝗶𝘁 𝗕𝗘𝗙𝗢𝗥𝗘 𝗼𝗿 𝘄𝗮𝘀 𝗦𝗢𝗟𝗘𝗟𝗬 𝗴𝗶𝗳𝘁𝗲𝗱/𝗶𝗻𝗵𝗲𝗿𝗶𝘁𝗲𝗱 𝗱𝘂𝗿𝗶𝗻𝗴 𝗺𝗮𝗿𝗿𝗶𝗮𝗴𝗲 𝘄𝗶𝗹𝗹 𝗸𝗲𝗲𝗽 𝗶𝘁 𝗮𝘀 𝘀𝗲𝗽𝗮𝗿𝗮𝘁𝗲 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆

When receiving an asset as a gift during the marriage or if the couple received it together, then it can become much more complicated as the spouse will need to show proof that it was SOLELY given to them.

Of course, sometimes in a divorce, the couple will decide that they just want to sell their Mineralized Interests and Royalties and take the cash. 𝗧𝗵𝗶𝘀 𝗺𝗮𝘆 𝗺𝗮𝗸𝗲 𝗮 𝗹𝗼𝘁 𝗼𝗳 𝘀𝗲𝗻𝘀𝗲 𝗮𝘀 𝘁𝗵𝗲 𝗺𝗼𝗻𝗲𝘆 𝗰𝗮𝗻 𝗯𝗲 𝘂𝘀𝗲𝗱 𝘁𝗼 𝗽𝗮𝘆 𝗯𝗶𝗹𝗹𝘀, 𝗶𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝗼𝘁𝗵𝗲𝗿 𝗮𝘀𝘀𝗲𝘁𝘀 𝘁𝗵𝗮𝘁 𝘁𝗵𝗲 𝘀𝗽𝗼𝘂𝘀𝗲 𝗺𝗮𝘆 𝗹𝗶𝗸𝗲 𝗯𝗲𝘁𝘁𝗲𝗿 𝘁𝗵𝗮𝗻 𝗼𝗶𝗹 & 𝗴𝗮𝘀, 𝗼𝗿 𝗿𝗲𝗰𝗲𝗶𝘃𝗲 𝗺𝗼𝗻𝗲𝘆 𝗡𝗢𝗪 𝗶𝗻𝘀𝘁𝗲𝗮𝗱 𝗼𝗳 𝘄𝗮𝗶𝘁𝗶𝗻𝗴 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹𝗹𝘆 𝘆𝗲𝗮𝗿𝘀 𝗳𝗼𝗿 𝗱𝗿𝗶𝗹𝗹𝗶𝗻𝗴 𝘁𝗼 𝗼𝗰𝗰𝘂𝗿 (particularly on non-producing interests)

This can even be done DURING a divorce, but both parties will need to agree. We are currently dealing with a couple that is valuing their minerals, but will need to both agree on the final sales price for them.

In the case they decide to sell, the couple would follow the following steps:

1) Contact a company to appraise/value their Minerals
2) Discuss amongst themselves (or through their lawyers) whether they want to sell
3) Fill out the proper paperwork to transfer the deed & title

Ideally, you would be looking for a company that provide All-In-One service to save on costs & fees during the process. In a messy divorce when the spouses aren't on friendly terms, having a company that can provide the back and forth (without costly attorney billing) can save a divorcing couple thousands of dollars.

𝐀𝐩𝐩𝐚𝐥𝐚𝐜𝐡𝐢𝐚𝐧 𝐌𝐢𝐧𝐞𝐫𝐚𝐥𝐬 𝐢𝐬 𝐏𝐑𝐎𝐔𝐃 𝐭𝐨 𝐩𝐫𝐨𝐯𝐢𝐝𝐞 𝐚𝐥𝐥 𝐨𝐟 𝐭𝐡𝐞 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐚𝐛𝐨𝐯𝐞 𝐢𝐧 𝐨𝐧𝐞 𝐞𝐚𝐬𝐲 𝐭𝐨 𝐰𝐨𝐫𝐤 𝐰𝐢𝐭𝐡 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 & 𝐦𝐨𝐬𝐭 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐚𝐫𝐞 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐥𝐲 𝐅𝐑𝐄𝐄.

We Help Land Owners Understand, Value, and get TOP DOLLAR for Oil & Gas Royalties and Mineral Interests. We also do Lease Negotiations. LOCAL West Virginia & Pennsylvania Owned - Call Us Any Time at 724.209.8487 or email [email protected]

05/27/2021

#1 Piece of Advice to any royalty owners
𝑵𝑬𝑽𝑬𝑹 𝑬𝑽𝑬𝑹 𝑻𝑹𝑼𝑺𝑻 𝑨 𝑶𝑰𝑳 & 𝑮𝑨𝑺 𝑪𝑶𝑴𝑷𝑨𝑵𝒀 𝑶𝑹 𝑻𝑯𝑬𝑰𝑹 𝑳𝑨𝑵𝑫𝑴𝑨𝑵

A GOOD lease for them is a BAD lease for you - so what do you think they will try to do to you?

05/27/2021

𝗪𝗵𝗮𝘁 𝘁𝗼 𝗱𝗼 𝘄𝗶𝘁𝗵 𝗜𝗻𝗵𝗲𝗿𝗶𝘁𝗲𝗱 𝗢𝗶𝗹 & 𝗚𝗮𝘀 𝗥𝗶𝗴𝗵𝘁𝘀?

If you have inherited Oil & Gas rights then CONGRATULATIONS on owning a right that most countries in the world do not give their citizens. It could be a wonderful thing, but unlike traditional real estate, there are steps you need to take to make sure that you secure your rights & future cash flows.

1) 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅 𝒘𝒉𝒂𝒕 𝒚𝒐𝒖 𝒉𝒂𝒗𝒆. You need to know exactly where, how many Net Mineral Acres (NMA), and how much interest in those acres you have. For the average Joe, this may be difficult as you will need to find & decipher records. So we would recommend going to a professional (attorney, title abstractor) or if you want to save some money a mineral specialist firm like us that offers free appraisals & quick title analysis.

2) 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅 𝒘𝒉𝒂𝒕 𝒊𝒔 𝒉𝒂𝒑𝒑𝒆𝒏𝒊𝒏𝒈 𝒐𝒏 𝒕𝒉𝒆 𝒈𝒓𝒐𝒖𝒏𝒅. Once you know what you have you need to know what is going on in that area and particularly YOUR PARCEL. Are they currently producing? If so, where in the production life cycle are they? Is it pre-production? Open land? Are drillers drilling in the area? And so forth.

To answer these questions you will need boots on the ground. Find someone to help you that knows the area. Don't find a Texas Attorney for Appalachian minerals and vice versa. For example, we know West Virginia, Pennsylvania, and Ohio in & out as we have plenty of sources to pull from - but if you're outside our area we would need to find contacts in those areas before we can help

3) 𝑫𝒐 𝑵𝑶𝑻 𝑺𝒊𝒈𝒏 𝑨𝒏𝒚 𝑺𝒂𝒍𝒆𝒔 𝑨𝒈𝒓𝒆𝒆𝒎𝒆𝒏𝒕𝒔 𝑩𝒆𝒇𝒐𝒓𝒆 𝑪𝒐𝒎𝒑𝒍𝒆𝒕𝒊𝒏𝒈 𝑺𝒕𝒆𝒑𝒔 #1 𝒂𝒏𝒅 #2. Too many times we've seen mineral rights inheritors being Ripped off by greedy landmen & investors. They dont know what they have and they accept chump change for their minerals. DO NOT BE THAT PERSON. Talk to a specialist mineral company first and understand what you have. That could make you tens of thousands of dollars for the few minutes it takes to call a mineral company.

While its a sad time dealing with the loss of a loved one, its also an important time to make sure you take the steps to secure all the assets that they have deeded to you and make sure that you don't let your grief hurt you and your family financially.

Your loved one worked HARD to give you what they've left you, so make sure you do your part to make the MOST of it.

Marcellus & Utica Shale | West Virginia | Pennsylvania| Ohio | Title, Mineral, Leasing and Right of Way Acquisitions | Buying and Selling Minerals and Mineral Management.

05/25/2021

We Want to Host An "Ask a Landman" Session where our Director of Leasing & Acquisitions will answer any questions you may have on the leasing process, drilling timeline & activities, and valuation.

If that is something of benefit to people please let us know!

Marcellus & Utica Shale | West Virginia | Pennsylvania| Ohio | Title, Mineral, Leasing and Right of Way Acquisitions | Buying and Selling Minerals and Mineral Management.

05/24/2021

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐜𝐞 𝐨𝐟 𝐚 𝐆𝐫𝐨𝐬𝐬 𝐋𝐞𝐚𝐬𝐞

What are Gross Leases and Post-Production Cost Leases?

When an oil & gas company approaches you there are a number of things they are looking to negotiate on, with the most important thing being your lease rate.

In most states 12.5% is the minimum lease rate that can be negotiated, so most land-owners are well aware they want a higher percentage so that's something that people don't miss these days (unfortunately in the past people didn't negotiate as hard). Most landowners will get anywhere from 12.5% all the way up to 20% - though anything above 17% is extremely rare and requires a strong & educated negotiating strategy. Most leases are on the lower end of that range.

All of this is well-known to most landowners. What isn't as stressed - that SHOULD be - is what post-production costs can the oil and gas company take out. If they cannot take out anything (also known as a GROSS lease) then the landowner gets the full lease percentage out of production. This is the best kind of lease.

But when leases to have post-production costs removed from the lease rate (like the lease that is shown here) then landowners will end up getting less than what they expect. The difference can be quite significant and we've dealt with landowners that have lost 80%(!) of their payments to post-production costs.

This element is absolutely key and we're negotiating leases with landowners this is something we focus on because its ALL IMPORTANT to get that Gross Lease as the value is significantly more than any post-production lease.

We had two mineral owners we were buying leases from and one lady had a 18% gross lease, while the other had a 18% post-production cost lease. She was getting $8000/acre while he was only getting $4800/acre - almost double what he was getting and she was in a less desirable area.

You'd need DOUBLE the lease % to match a Gross Lease, so don't be fooled by the higher number and make sure you remove any post-production lease language which will make your lease & royalty checks much more valuable 💰

We Help Land Owners Understand, Value, and get TOP DOLLAR for Oil & Gas Royalties and Mineral Interests. We also do Lease Negotiations. LOCAL West Virginia & Pennsylvania Owned - Call Us Any Time at 724.209.8487 or email [email protected]