I am looking for some help. Received a letter from Ferrell Oil wanting to buy my Dad’s mineral rights located in Roger Mill County, OK. The land has not been drilled yet and Ferrell offered $3,000 per mineral acre. We don’t know what the rights are worth or how many acres we own. My Dad inherited the rights from his great aunt, so we don’t know that much about it. I guess the first step would be to check the county clerk’s office in Roger Mill. Or any other suggestions. How do we appraise what the mineral rights are worth? Ferrel also offered 3/16 lease on the rights. Does this mean my Dad gets 20% of the profits? The land is located in Section 13; Township 11 North; Range 26W. Appreciate any input.
Thanks,
Troy
Troy,
If you want to have an official appraisal of the mineral rights, there are folks that do that for a living. One such gentleman that has done that for us is Mr. Erwin in Chickasha. If you would like, I can check and see if he is still doing that or get the name and number of someone currently doing it that we trust.
If you want an unofficial appraisal, you can do the research yourself. There is an article at http://fin181.blogspot.com/2010/10/mineral-rights-appraisal.html among others on the internet.
You can get daily information and insights on managing minerals at www.melsmineralmanagement.com. You can subscribe by email or RSS feeds.
My advice for anyone is to keep the mineral interests unless you are severely pressed for money. Go to the courthouse and find the deed for your property, check the Oklahoma Corporation Commission to see if you can detect new drilling permits being issued in that area, how many wells are drilled, how many are producing and for how long, etc…
Let the company that wants to lease your property send you a lease and see what they think you own and what they are offering. You don’t have to sign it and definitely ask more questions here and on melsmineralmanagement.com when you get the lease to make sure you don’t sign a lease with questionable clauses.
You can also contact an oil and gas attorney, which you might want to do either way. We use a gentleman in Chickasha. I can give you his name if you’re interested or we can ask him if he has contacts in your area that he trusts.
Yes, I would be interested in talking to Erwin. I just called the court clerk in Roger Mill county to find out the details of the inheritance. They told me that it would be too difficult to access the records and that I need to consult with the landman from the oil company for the details. The clerk said they should already have the info. I called Ferrell Oil and they have not yet called me back. Could you give me a ball park figure on how much it would cost for an appraisal? Would Erwin be able to provide details on what exactly we own…e.g. (deed details). Thanks for the articles, I am learning more and more everyday. Could you please call Erwin to see what he thinks.
M. D. Wood said:
Troy,
If you want to have an official appraisal of the mineral rights, there are folks that do that for a living. One such gentleman that has done that for us is Mr. Erwin in Chickasha. If you would like, I can check and see if he is still doing that or get the name and number of someone currently doing it that we trust.
If you want an unofficial appraisal, you can do the research yourself. There is an article at
http://fin181.blogspot.com/2010/10/mineral-rights-appraisal.html among others on the internet.
You can get daily information and insights on managing minerals at
www.melsmineralmanagement.com. You can subscribe by email or RSS feeds.
My advice for anyone is to keep the mineral interests unless you are severely pressed for money. Go to the courthouse and find the deed for your property, check the Oklahoma Corporation Commission to see if you can detect new drilling permits being issued in that area, how many wells are drilled, how many are producing and for how long, etc..
Let the company that wants to lease your property send you a lease and see what they think you own and what they are offering. You don't have to sign it and definitely ask more questions here and on melsmineralmanagement.com when you get the lease to make sure you don't sign a lease with questionable clauses.
You can also contact an oil and gas attorney, which you might want to do either way. We use a gentleman in Chickasha. I can give you his name if you're interested or we can ask him if he has contacts in your area that he trusts.
Troy,
I’m checking on Mr. Erwin and if he is still doing mineral appraisals. I have no idea of the costs today. The last time we used him was for an estate assessment when my grandparents died. I’ll let you talk to him directly. If he’s retired, I believe we have some other folks, one of them an accountant.
I don’t believe Mr. Erwin traces back deeds and property ownership, but we do have an oil and gas attorney that does that and he might be able to do the appraisal also. Let me check with him if I can release his number, then it would be best if you call him directly.
M. D. Wood
www.melsmineralmanagement.com
Troy,
Mr. Erwin’s phone is 405-224-2252. He said you could call him. You might mention my name, Melinda Wood, Jim and Dawn’s daughter.