My siblings and I inherited numerous mineral rights years ago. Suddenly, we are being inundated with offers to lease or sell. We are considering offers to buy our interests, but are completely ignorant on what a fair offer is. How do we find out? Some of the rights are: Sect24-18N-16W, Sect25-18N-16W and Sect16-19W-20W. Any thoughts on what a fair price would be?
Thanks!
Anne
(I also have mineral rights in Dewey County and I am getting unsolicited offers.) Dewey County is just beyond an area that is hot, namely down toward OK city. Drilling seems to be moving toward Dewey County. My guess: Dewey County is the next area to get drilled. Part of my holdings south of the Canadian river has been drilled and the results of the last several years are underwhelming.
Getting a clear title is first order of business. Do you and your siblings have clear and recorded title that you can sell? I have a clear line and set of documents and still had to sort out several connections, connect several dots to collect on a lease I didn't know about.
Many old timers say never sell your rights. Rather, lease them. (OK maybe LEASE the rights and THEN sell them?)
What I have found so far: There is an auction place for leasing rights that has an interesting process: you put them up and you get several bidders. The larger the block, the better the price (Advice would likely be: get your siblings and relatives all on board and THEN put the rights up as a block). The auction site then gets you all the best, objective price for a LEASE.
Anne,
My sisters and aunts also have mineral rights in Dewey County. Unless you're upwards of 70 years old and have no heirs, don't sell your mineral rights. Lease them every three years.
First: Even if under age 70, at any age, make sure the title is clear and ready to lease.
Second, get the rights organized in a package and format that is easy for the heirs to transfer either while alive or when you die. Trusts work. I had to get triple certified copies of my uncle 's will from early 90's and affidavit from the attorney who luckily was still alive and had his marbles. Yeah.
Many people think the interests are/were worthless, so why mention them. My Uncle Harold and his attorney searched for value, found none yet still LUCKILY FOR ME mentioned the rights in his will and the Probate proceedings. The mention could have been more specific, but with a few dozen hours of digging, I figured it out. I thought I had it...
AND THEN I discovered MORE AND had to track down Harold's ancestor who died in 1961 and register what he inherited from her.
Get docs in a row includes registering your rights and ownership at the County Courthouse in Dewey or whatever county they are in.
Most of the rest of the heirs of this parcels are yet to be discovered. I'm still looking for them, so could use some help finding them and their probate/inheritance papers. No benefit for me and I'm tired of messing with this, but I have laid the groundwork for them. If I ever get the energy or time to track them down.
Drake:
My grandparents owned 12 acres (both surface and minerals rights) of which they sold in early '60's. At the time of the sale, they retained 1/2 mineral interest of all 12 acres; which is what I now own.
My question is.... For me to sell, lease, or do anything with these minerals, do I need to find the ownership status of the other 1/2 interest? I'm afraid that since its been over a half a century, there may be several.
I'm getting rather aggravated trying to research the history, learn all the terminology and rules to leasing/selling, and basically believe that I should just sell at this point. I too, am tired of messing with it! I don't even understand when someone says that they received an offer to lease at $1000/nma, if that's a month, year, every 3 years??? and the options??? Geez, overwhelming for me!
Carolyn, Sounds like you have 6 net mineral acres-----to lease, sell, or hold! The lease term you mentioned is $1000 per net mineral acre, for a 3 year lease... meaning $6,000 NOW for full payment of the 3 year term. (unless productive, then you share in that also.)
still more confusing?? feel free to call and I will answer what questions I can.. been in this business 40 years. ps you really do not have a problem, just a little info and need more....