Daniels County, MT - Oil & Gas Discussion

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Comment by Glenda K. Coleman 9 hours ago

Lease funded............Now the "Wait" to see what happens!

Comment by Desiree Dickman on May 12, 2012 at 7:50pm

Just wanted to let anyone know, that if you are interested in leasing your mineral rights, I think you might want to talk to Summit Exploration. They drill themselves, and are not interested in flipping. Might be worth your time to call. Many have found that to be true. 406-253-1137. Thanks

Comment by Sharlie Moore on May 8, 2012 at 1:07am

Wow you guys are priceless. Thanks so much for taking the time to explain it to me and in such a manner that it is easy to understand.

Comment by Eastern MT on May 8, 2012 at 12:44am

Sharlie, I AM NOT A MT ATTORNEY so realize this answer is worth precisely what you paid for it...

I believe what you're asking is as follows; "Ole & Lena" pass on and leave their minerals to their six kids; Each of those six kids now own 1/6th of Ole & Lena's interest. Your Mom and her five siblings are those six kids.

 

If Mom's siblings are deceased their 1/6th interest goes to their own heirs, or to whomever they bequeathed it to in their wills.

 

However, if her brother "Bob" died without kids, heirs, or a will... then Bob's 1/6th interest will revert to his siblings. In other words, your Mom's interest would now be increased an additional 1/5th of 1/6th.

 

In this case, you and your sisters would each own the original 1/3rd of 1/6th from Mom's. Plus an additional 1/3rd of 1/5th of 1/6th from Uncle "Bob" via your Mom.

 

If any of this looks similar to your family's situation consult a Montana attorney to determine if you may own some additional interest. If your aunts and uncles each had heirs then those heirs (not you) inherit those interests.

Comment by Buddy Cotten on May 8, 2012 at 12:33am

Dear Ms. Moore,

The answer to your question lies in 1.) was there a will for the deceased child, and  2.)  what state was the property located?

The 1/6th owner who dies without a will is said to die intestate and the property h will be distributed according to the Descent and Distribution Statutes of the State's Probate Code.  In some instances, the interest could go to the surviving parent, or surviving siblings, if the deceased had no issue.

Best

Buddy Cotten

Mineral Manager

Comment by Sharlie Moore on May 8, 2012 at 12:09am

Thanks that explains very clearly to me about that subject.

Can I test your patience a little further and ask just one more question?

If the original landowners left their mineral rights to 6 of their children, 1/6 to each, what happens when some of them die. What happens to the 1/6 that was willed to them. Does it then increase what the others get?

Comment by Eastern MT on May 7, 2012 at 10:57pm

Sharlie, thanks for the nice words below.

A lease is a binding contract. The lease terms are mutually agreed to (including the amount of royalty) and they continue in force for the life of the lease. A lease is usually for 3 or 5 years. However, once production begins the lease continues in effect as long as the production continues. So if you sign a lease with 1/8th (12.5%) royalty that is what you'll receive for the life of that lease. You cannot renegotiate anything.

 

Once production begins your 3 or 5 year lease may easily be extended into 30 or 50 years. All those original lease terms remain in effect until the lease expires, or production ceases. This is why it is so important to carefully read all of the lease terms, and negotiate any changes, before signing.

Comment by Sharlie Moore on May 7, 2012 at 10:33pm

Thanks so much!

Comment by B Volney on May 7, 2012 at 10:11pm

I myself am still in the schoolin' stage, I found MINERAL HELP up above next to the groups to be very helpful, at first all I knew was that when you get a lease offer you just sign it and wait. WHOA .. farther from the truth ... its just when you made the comment, about re-negotiate,  Red flags went up.   It is all good and I am glad you will have a attorney look at it when you get a lease offer.....  but be careful there too, attorney fees can add up especially if you involve them to soon, I just threw one out from shale bevause it was for five years primary, and the royaltys was 1/8 , that is really where the long term money is, it would at least have to be 1/6 or if possible better to even be considered, a well  can last a very long time. the sign up money and bonus money is really nothing  unless you need the money bad,  I have just touched on some of the things to consider, check out the MINERAL HELP for a lot more info...   we b schoolin' girl

Comment by Sharlie Moore on May 7, 2012 at 9:50pm

Oh don't worry about me, I may need some schoolin' but I have learned not be in a hurry to sign anything. I also plan to have an attorney who is schooled in this subject to look it over.

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