Legal Question in Real Estate Law in California

value of mineral rights pertaining to land developement

I am being asked to sign away mineral rights to a 1300 acre parcel of land in Calif. which a relative wishes to sell to developers for the purpose of residential developement. No compensation is offered even though the owners of said property will realize large profits. Future drilling if allowed by the city or public is limited to one well per acre. Calif. Public Resource Code 3606--- Since it is very unlikely that future drilling would occur in a residential area do you feel I should " give away " these rights? Assuming I shouldn't, how would I evaluate my portion of the mineral rights? If you can answer this it would be greatly appreciated. Thankyou.


Asked on 9/06/99, 10:41 pm

2 Answers from Attorneys
Joshua Genser Joshua G. Genser, Attorney at Law

Re: value of mineral rights pertaining to land developement

I might be able to help you value your mineral rights,

but not without a lot more information. The value

of the mineral rights might be the potential value

of the minerals in the ground minus the cost of

obtaining them, in which case you'll need to consult with

appropriate experts. The value might be your ability

to hold up the deal. The threshold question is

whether the cost of appraising those rights would

exceed their value.

Read more
Answered on 9/13/99, 12:16 pm
Ken Koury Kenneth P. Koury, Esq.

Re: value of mineral rights pertaining

I am afraid I cannot help you place a value on the rights but you do not have to sign them away and it would be foolish to do so without getting paid.

Read more
Answered on 9/09/99, 12:59 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California