My grandfather who was never into the oil and gas business had approx 65 acres of land in Dolores and Montezuma Counties, Colorado. When he sold the land, he kept 50% of the gas and minerals rights. After he passed away, he left it to my mother. She is now in her 80's and diagnosed with terminal cancer so she wants me to take over the ownership of the mineral rights. A company called Bill Barrett Corporation had a previous lease and on Saturday I got a small check for something called a shut-in payment.
I have no clue about all this and have never even seen the land in my life, I do not know anything about Bill Barrett Corp and have never seen anything such as activity on the land in question, so I am asking for some assistance in all this. I do not know where to start. I once asked someone within the Bill Barrett Corp about selling the rights as I do not know what it is worth, but the guy told me NOT to sell it. That I was on the outskirts of drilling activity and to hold on to it.
I am a 58 year old disabled Vietnam veteran living in California and at this point, I will admit, I know NOTHING.
Thank you for listening,
Kevan Lyman
Kevan, a shut in payment is a payment in lieu of royalty from a well that could produce but is not producing for lack of a pipeline or market to sell to, generally speaking. There is a well if you have received such a payment, The lease is held just as if there were production, for a set period, or possibly as long as they keep making yearly shut in payments, whichever is indicated by the wording of the lease. In your place I would get a copy of the lease and read it first thing. I hope this helps.
I will call Bill Barrett Corp tomorrow and ask them for a copy of the lease. I think the first thing I should do is find out how to get it out of my mother's name and into my name. I don't know what steps I need to do to accomplish this but I am figuring I need to contact someone who records all this info in Colorado.
I sure appreciate your reply Mr. Kennedy, it is the first in a lot I may have regarding all this. I hope I am posting in the right forum, but like I said I have no clue what to do.
Respects,
Kevan Lyman
Kevan, your mom can deed you the minerals. I would see a real estate lawyer as minerals are real property and a RE lawyer generally charges a lot less than an oil and gas lawyer, at least in my experience. This forum should be fine for your issues. Don't hesitate to ask, that's what the forum is for.
Kevan,
Bill Barrett Corp is a good exploration company that works from Montana, across Wyoming, and Colorado. They must have a lease that your mother may have signed. It may also be recorded in the counties. You are on the right track and in a good place with your questions. It appears that the minerals are held by production as RW stated. I grew up nearby there and have studied the geology of the San Juan Basin. Your family minerals may be on the NW flank of the basin, a good place for gas wells as well as coal bed methane production. I've sent you a "friend" request and will try to help you out with specifics if I can.
Kevan
I would encourage you to befriend Gary H. He has been a great help to me in the last few months.
K.Williamson
Gary L. Hutchinson said:
Kevan,
Bill Barrett Corp is a good exploration company that works from Montana, across Wyoming, and Colorado. They must have a lease that your mother may have signed. It may also be recorded in the counties. You are on the right track and in a good place with your questions. It appears that the minerals are held by production as RW stated. I grew up nearby there and have studied the geology of the San Juan Basin. Your family minerals may be on the NW flank of the basin, a good place for gas wells as well as coal bed methane production. I've sent you a "friend" request and will try to help you out with specifics if I can.
Gary L Hutchinson
Minerals Management
Thank you all for your help and to Gary, I sent you a message with some other details.
Respectfully,
Kevan Lyman
Like Gary, I do certainly praise Bill Barrett as a good operator. I am a partner with them in the Williston Basin (anybody want to buy a working interest) and have found them wonderful to deal with. It has been my experience that if they treat their partners good, they treat the landowners good, too.
The quality of a company seems to start at the top and moves down.
You will like to deal with them.