Blk 59 sec 16

Does anyone know the best source for finding my fellow owners in block 59, section 16?

Thanks,

Helen

Hi Helen!

Your Section of Land is classified by the State as being Mineral & Grazing Lands ("Mineral Classified"). The Minerals belong to the State with whoever the current surface owner is acts as Agent for the State. Your "Fellow Owners" are The State of Texas and the current Surface Owners.

I have attached both a pdf copy and an Excel CSV download of the recent leases taken on the lands, but you would need to check with the County Appraisal District regarding an accurate, up-to-date list of the Surface Owners.

I can pull up single sheet information pages on the individual leases with address information and terms of their leases if you would like those.

If you would like an official letter from the State's General Land Office about their classification of your lands for your files, call Walter Talley at the GLO in Austin at 512-■■■■■■■■ and he will send you one for $10.

Hope this helps -

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

PS: Remember that when you open the Excel CSV file, you will need to save it as an Excel Workbook File.

107-GLOINFOSHEETA4376.pdf (53.5 KB) 108-RECENTLEASES.pdf (58.3 KB) 109-RECENTLEASES.csv (4.75 KB)

Wow, thanks! But hopes dashed ...

Best wishes,

Helen

Why are your hopes dashed?

Sounds like we have no claim to the minerals.

It's not that bad. If you own any of the surface you receive 1/2 of any Bonus Payments, Rentals and Royalties. You just don't own the minerals.

If you had in mind selling your minerals, which in some parts of the County are going for HUGELY sums of money, you can't do that because you don't own them.

But I am not aware of anything stopping you from assigning your royalties to a "buyer" for a HUGELY sum. It would just have to be in effect a Term Royalty Deed, terminating when the current lease expires.

You may even be able to negotiate the same thing for the State's half or the royalties, but that would probably have to be approved before it would become effective.

Whew! Don't want to sell. How would I go about negotiating for the State's half?

If you mean buying the minerals from the State, I'm not sure you can. That was tried many years ago and was found to be illegal. Or, at least the GLO couldn't sell them because they didn't own them.

I don't deal with this area of the industry very often, but it is my understanding that the minerals under Mineral Classified (Relinquishment Act) Lands actually belong to the State's Permanent School Fund (PSF), which is managed by the State's School Land Board (SLB).

But even just for leasing, you don't deal directly with either of those organizations, you deal with the Landmen at the Texas General Land Office (GLO).

Let me call one of them Monday and ask if that is something that is even possible today - your buying the minerals.

What is your legal description?

Oh my, I would certainly appreciate that! I did leave a message for Walter Talley. The legal description is: AB 4376 BLK 59 SEC 16 PSL (1/2 of 1/2 of 1/6 of 40 AC INS/2) (10 acres).

Helen

I'll give them a call Monday and let you know what I find out. In the meantime, Walter should be able to help.

Enjoy your weekend. Hope your team wins!

Helen -- Does your family own the surface?

Yes

We are 3 miles south of you in Section 33. Our is also mineral-classified. We own the surface but the State of Texas owns 100% of the minerals. When you negotiate a lease, you are acting as an agent for the State. For that service, the State allows you to receive 50% of the lease bonus and 50% of the royalties, but always remember that you don't actually own the minerals. Since you don't own them, you can't sell them. You can only sell the surface that you own. Any future 50% agency fee (or royalty) would go with the surface to the new owner. They can't be separated.

One more thing, if you are negotiating to lease the minerals, the State must approve the negotiated terms. You will be using a standardized lease form that contains language required by the State office. After you get your best deal, the lessee will submit it to the State for approval. Generally, that's not a problem if you negotiate a competitive deal with the lessee.

I believe that if you have existing production or an existing lease, you may be able to reserve the royalties. But it would in essence be a Term Royalty that will expire when the current lease does.

It is my understanding that you can also assign the royalties to another party, but that too would be in essence a Term Royalty Assignment, expiring when the lease expires.

Has anyone approached you about a lease. Our acreage is currently open, and we would like to know who might be active in this area.

Not yet, but it's my understanding that we will have a better chance if we can consolidate.

Thanks, unfortunately, there is no existing lease or production activity for BLK 59 SEC 16, but hope springs eternal!

Thank you so much! I'm not interested in selling anyway.

I'll let you know if any reasonable offers pop up.

Thanks so much. I plan to be proactive in finding a lessee.