What can I do with my mineral interest?

[Mike Warder]

I'm looking for advice on how best to utilize my inherited mineral interest in a 2,000 acre tract of land in WV. The land was once oil-producing and I believe it has shale deposits now. My question is, how can I put this interest to use for me? Shop it around as collateral for real estate investments? Try to sell my interest? Pay a lawyer to unify the family's now-divided interest and sell it as one unit? Is any of this realistic? I'm not well-versed in mineral rights. The ownership of the mineral interest is now divided among 23 people in my extended family and a nearby university. Our family has 7/40 ownership and the university was gifted the other 33/40. Recently, the university put their interest up as collateral for a $35m bank line of credit to expand the campus. So, it's gotta be worth something, right? I'm kicking myself for not paying more attention in my oil and gas law class! Any ideas on what I should do would be greatly appreciated. Thanks!

[Chris Martin]

Without knowing all the collateral contributions on their LOC, you really can't extrapolate valuation. Too many variables. This collateral (the land) might have been thrown in last minute to boost NCAV for all I know.

It's clear that even as a unified family you will be a minority interest. Your best bet, IMO, is to work with the university to see if you can reach a unified vision for what this parcel will be. If the majority  interest holder is WVU, I may be able to help with contacts. PM me. I'm not interested in any part of your parcel or any 'deal' or compensation, just trying to help a member of BP Nation.