Determining Exact Mineral Interest


#1

I am trying to determine the exact amount of “net royalty” decimal interest owned in an inherited property. I’ve searched Garvin County records and found no detailed information regarding the property. We’ve now received an offer to purchase and it indicates their offer would be determined based on the decimal interest currently being paid by Red Rocks. The issue is, we aren’t currently receiving payment from Red Rock.

So, my questions are - how do I determine the exact amount owned and verify my interest? Also, is there a way to confirm current production? This is for section 4, Township 3N, Range 3W and we also fairly recently received a copy of OCC Cause requesting a MultiUnit Horizontal Well. I’d love to get all this straightened out prior to this.

Thoughts or recommendations on how to proceed?


#2

There are a lot of issues packed in your post, so lets start with an offer to purchase your minerals. Just because you receive an offer to purchase does not mean you actually own minerals–generally it just means your name was listed as a respondent to an OCCC application of some sort or another.

If you have received notice(s) of OCC hearing(s), my recommendation is to contact the Applicant and ask them to kindly tell you what they think you own. They most likely have already run the title and have that information at hand.

As for selling your minerals, take the time to also educate yourself on values, and whether it is a good idea to sell or keep your interest.


#3

If you are about to get a horizontal well (and maybe more in the future), you definitely need to slow down and determine what you own and whether it makes sense to keep it or sell it. Those letters are often just “fishing” letters and the offers are usually low because they know they are going to make a good profit if someone accepts them-especially right before a horizontal well is drilled.

Look on the OCC application that you received and see if you recognize an ancestor in any of the respondents. As Frank said, contact the Applicant and see why they sent you the OCC mailing and how many acres they think you have.

Read over the last few months of Garvin posts and learn what is going on.


#4

This is a strange world. I have acreage in sections 10 and 15 in that township with Red Rocks having completed a horizontal well in sections 15 and 22. Two or three months ago, my son got a call on his cell phone (no idea where they got it, and he is not an owner) and received a lucrative offer. I cannot say if this was for real, but the caller seemed to know a lot about our ownership. i said I would need to see a division order and some production results before considering anything. I signed a DO on Oct. 5th but haven’t seen any royalties yet, and no further solicitations. The caller offered to pay probate expenses and make it very easy. If it was bona fide, it looked to me like someone wanting to make a quick and large profit. I’m new at this, so I’m just sharing.


#5

Red Rocks has drilled or is drilling the Rocking “T” Ranch well & has proposed the Viper well. Both are for Sections 4 & 9. No production yet on these 2 wells. Depending on your minerals location in either of these sections, you may be receiving revenue from some older wells as there have been many drilled since the 80’s, some of which are still producing.

Is you offer from Southwest Petroleum?


#6

Thank you all for your replies. I do understand that these properties can be very valuable and want to be sure we are making the right decisions. Thanks so much for your help. I currently own mineral rights in Grady County which have producing wells on them but those were in place when I purchased the mineral rights. This is a different scenario with there being no record of production that we are aware of.

Todd - The offer received is from Southwest Petroleum. Is that of significance?

Frank & M Barnes - I will be contacting Southwest today to see if they can provide information regarding ownership. Thank you for your help.


#7

They won’t have any ownership. They just do mass mailouts.


#8

Thanks, Todd. Do you know where they get their information? If I’m seeing things correctly, the section that this is in reference to was actually sold (Quit Claim Deed) back in 1995. Everything that is coming is in a large mailing and as the estate of an ancestor.


#9

Becky: Southwest is getting your name &/or address from filings with the Oklahoma Corporation Commission, same as what you get. Then they put together a mass mail-out. When someone completes the paperwork & sends it in, they will do title to determine what interest, if any, that party owns & pay accordingly.


#10

Todd is absolutely correct. Even worse, they try to get you to sign a mineral deed before they go check the records.


#11

If that letter has a $500 check on the bottom, be extremely cautious and read the fine print. They have been mentioned before on the forum.