Back in 2009 I bought a mineral rights certificate. Here is what it says. “Dakota Oil and Gas Mineral Rights. Owner of this certificate is entitled to 100 square feet or 100/2613600% of mineral rights of legal 60 acre tract owned by Dakota Oil and Gas. This document is a novelty deed and is not registered with any entity other than Dakota Oil and Gas. If Dakota Oil and Gas sells this property the owner on this certificate will be entitled to 100/2613600% of legal mineral rights on deed of sale. The owner of this deed may not occupy, redevelop or resell. North Dakota, Ward County, Township 152 N Range 84 W Section 19 NW1/4 SW1/4. 60 acre Tract owned by Dakota Oil and Gas.” I know absolutely nothing about mineral rights . I believe that the sales pitch was that they owned the property but were selling mineral rights for research and development. I do not remember what I paid but it was not much. Is this worth anything? Thanks , Stacie
Stacie:
I would venture to guess your ownership has the same value as your ownership in a New York bridge, the one square foot of Alaska gold from a 1950`s promotion, some AZ lot with no access to electric or water or FL swamp land. Some may find value in framing.
Stacie:
I owe you an apology stemming from years of frustration seeing people get ripped off. Unless people are professionals in the mineral industry they should shy away from some of the deals that seem too good to be true. It`s like horse trading so unless you know what your doing you may not be happy with the result.
In the 1970`s when tax shelters were the thing I remember one cattle operation where they ran the cattle around a hill when establishing the count during an audit. Other created total investment losses vs right-offs.
People have called wondering if they should invest in buying Fed. oil and gas leases without understanding no development would happen until they find a party willing to begin actual exploration. My typical response was unless you have had long term involvement in the oil and gas industry save your money and buy a lottery ticket.
I have seen TX Oil Certificates for 5,000 barrels an up seeking a loan to purchase a portion. When checking the issuing company they were not register to do business in TX, the address was bogus and no specific property or wells could be traced to the certificate.
There was one drilling program where one could buy units of participation. When reading the offering some of the fine print detailed the fact if all the funds were not used during drilling the offering company could keep any overage, the would be monthly account charges plus an additional charge when cutting you a check. Not all drilling programs are bad but if one invests they need to stay on top of the details.
I suspected that and thank you for your help. No apology needed. I bought it at a time in my life when I had a little more cash and a little less common sense. Now the opposite is true. I appreciate this forum where I can get answers. Have a great day Cara
Thanks Stacie.
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