Money Ain't Everything

I recently spoke before another HOA group who was interested in becoming a group so they could negotiate a better lease for their minerals.  I definitely support their idea about joining forces. There is power in numbers, especially in the Number of Acres you can offer to a company.

However, there are many lease terms that can be equal to, OR GREATER THAN, lease bonus when it comes to long term valuation. 

If you live in nice area in a big home the amount of bonus you are going to receive from a gas operator to lease your 1 or 2 acre tract is not going to make a lot of difference in your lifestyle.  Granted, $20 or $30 thousand dollare, as a windfall, is not chicken-feed to anyone but it isn't all the money in the world.  And you are going to need to have a couple of acres to get that much from anyone.

But if you have this big home and acreage sized lot you probably make good money anyway.  How much would you pay to not have to listen to the constant noise from a gas compressor site next to your home.  And it runs 24/7 every day of the year.  And occassionally you will have truck traffic around your home when they service and maintain the compressor.  I know it would be worth a lot to me not to have to put up with that aggravation.  But people who don't know what to ask for frequently do have this happen to them.

The thing to realize is that you need to think beyond the check they are waving in your face and think about how this will impact you and your family. 

THE MINERALS ARE GOING TO BE DEVELOPED.  Maybe not right now but they will be eventually.  You don't even have to sign a lease, or reap any benefits, to be in the position of living next to a compressor site, or treating plant.  You might just be plain LUCKY.  More about that next time.

Let me know if you have any questions.  Please email and I will get back with you.