Value of Leasing Mineral Rights in Marcellus Shale

Value of Leasing Mineral Rights in Marcellus Shale

Are you looking for the exact value of your mineral rights?  You can visit countless websites and never find the answer and we’ll explain why.  Unlike the housing market where the value of property is recorded and can easily be found online, Oil & Gas leasing activity is not recorded publicly.  If you’re searching for a number online, you’ll never find the answer! Even finding a ball park number can be difficult if not impossible.

So how do you find out the value of your property?  Below we’ll discuss the factors that contribute to the value of leasing mineral rights in the Marcellus Shale.  In addition, we’ll help understand the best way to find out the value of your property so skip to the bottom if you want to know immediately!

Factors affecting the value of leasing mineral rights in Marcellus Shale

Property Location: It may seem simple, but property location plays an extremely important role in the value of your property when leasing your mineral rights. We often hear from owners who heard about a great offer their neighbor got.  Two properties may border each other and be worth completely different prices.  The reason is that geologically Oil & Gas companies are looking at a very specific location. If your property falls outside this location by even a little it can have a large impact on the lease offer.  On the flip side, if your property is in the perfect location you may receive a very high offer for leasing mineral rights.

Timing: Oil & Gas companies, especially larger ones, will sometimes be in a rush to lease up as much property as possible.  During this time it may seem like leases are incredibly common and everyone is being leased.  In addition, when one large company comes into an area and starts leasing, other companies may follow suit speculating that the large operator knows something they don’t and they want to get in early.  It’s important to remember that the leasing market from 6 months ago may not be the same market today if companies decide that leasing in that area is no longer worth it.

Oil & Gas Prices:  When oil prices are high, properties that are sitting in areas that are commonly associated with Oil will increase in value. This will lead to higher lease offers for your property.  If oil prices drop, this creates and increased risk for operators and they will be less likely to lease for higher prices.

Government Regulation: In certain areas where fracking is banned, Oil & Gas drilling has come to a complete halt. Oil & Gas companies will only lease in areas where they are certain their investment will pay off.  If government regulation makes drilling difficult or impossible, this will affect the value of leasing mineral rights.

Surrounding Area: What’s going on in your area is very important.  If there is Oil & Gas activity near your property and multiple wells have been drilled that have been proven successful, this will create an increased demand for your property.  Knowing what activity is taking place can be a key negotiating factor when leasing mineral rights.  If all the activity in your area has led to Oil & Gas operators drilling dry holes or less than desirable production, this will decrease the value of leasing your mineral rights.

Other Factors: The factors above have the most impact on the value of leasing your mineral rights, but there are a number of other factors that will affect the value.  The geologic composition of your property, competition in the area, pipeline infrastructure, previous lease activity, and many other factors play a role in the value of leasing your mineral rights.

The best way to determine the value of your mineral rights is to get in touch with someone who knows your area and can help you better understand your property and what value is may bring when leasing mineral rights in your area.

Best way to determine value of leasing mineral rights in Marcellus Shale

While there is no one who can give you an exact answer, we have two solutions that can at least help you get a ball park understanding of the value.

Solution 1: Marcellus Mineral Owners Free Consultation

We speak with Mineral Owners all over the Marcellus Shale every day.  As discussed above, knowing what’s going on in your area can be a good indicator of value.  Since we speak with mineral owners constantly, we have a good idea of the value of minerals in most areas.  We can’t give you an exact answer, but we can usually provide you with a ball park number so that you know what you can expect to receive when you lease mineral rights in the Marcellus Shale.

Get a free consultation with us by filling out our Free Consultation Form

Solution 2: US Mineral Exchange Listing Service

The best way to find out the true value of your mineral rights in the Marcellus Shale is to list your mineral rights online and let buyers compete for your property.  By listing your property online you can market your property to entities that lease mineral rights all over the country.  The only true way to know the current market value of leasing your mineral rights is to list them online and see what offers come in.  We recommend US Mineral Exchange because they provide services specifically for the benefit of mineral owners.

You can visit them here: US Mineral Exchange