Potash Lease

[bucket]

I know nothing about this but if it's based on the price of potash get them to use the retail price at your local retailer.

It's about 250 dollars a tonne higher than their production costs or higher than their price to the Asia countries.

[boarderbloke]

Do you not get a percent of the potash removed from your minerals, like an mineral lease for oil & gas? or do you just receive this flat acreage payment?

[farmaholic]

Is it the fact they won't allow leasing different minerals on the same property.

Or is it interference with each other's extraction processes. Oil and potash. Or where one exists the other doesnt?

I thought I heard something about "zone" leases in oil country?

I know nothing about this but would.like to hear an informed opinion.

[sumdumguy]

Alberta allows leases in layers, I am told Sask not.

[LEP]

The government leases different zones to different companies. I am sure they did that near Midale.

I would make sure that you spoke to a lawyer with experience in resources. The advice you get ain't worth a pinch of salt otherwise.

I would think the biggest impetiment to leasing different minerals would be the proximity of pay zones although I doubt there is oil very close to any of the potash mines.

Using retail price of potash is a non starter. It would be like saying you want to use pump price for oil royalties.

[checking]

It appears the potash company (maybe), but could just be a speculative land company wants to tie up your 160 acres of potash minerals for 21 years for the grand sum of $3200.00 of chump change. Did you ask who you were dealing with?

If it's the later, and you signed, then you just gave, whoever, decades to pedal your potash minerals for their own gain through subleasing with no assurance they will ever be produced, which is where your royalty percentage makes you the big bucks.

Yipes, 1950 revisited!

[parsley]

A potash company offered me money to buy my mineral rights several years ago.
I ignored them.

The potash company then offered to lease my mineral rights.
I ignored them
The potash company then offered to both buy some of my mineral rights plus lease some of the mineral rights
I ignored them.

The potash company then asked me what I wanted.

I said I want to keep the rights to other minerals, for example oil, but perhaps would be willing to renegotiate leasing. perhaps.
We agreed they will wait for me to call them. Parsley

[oneoff]

We are all really so ill informed about that which we really do know absolutely next to nothing.

Its quite probable that the "landman" said he represented a "potash" company or whomever. If you pressed what company name would be...quite probably that person would say they weren't at liberty to say.

Thats when a person says they can only do business with someone that has a name and track record.

This is a game of speculation; options and making deals with those who are naive and uninformed about business they only encounter infrequently....if at all...in a lifetime.

[parsley]

The potash company itself sent me a formal offer and a formal agreement form to sign.

We do have a lawyer in the immediate family, who I am quite sure I can convince to check the agreement if I should take the notion to proceed, on some fine Monday morning.
But thanks for your kind concern, oneoff. Parsley

[mrossm3]

I own MR's on a 160 acres about 2 KM's (stoney beach) from the operating Mosaic Solution mine in Belle Plaine. I know they are expanding north. I have had a land-man chasing me for quite some time @ $100 per acre to SELL the rights. I have been digging about for a couple of years trying to get an answer on the worth of those M rights but to no avail. If you or someone else on this forum has an idea I would sure like to have a discussion and gain some insight.