Hi! I’m really new to this! So, basically last year i was contacted by a company that did some research and found that i own mineral rights in Howard County. It originally belonged to my grandmother and when she passed away was never added to the family trust so by a stroke of luck, i ended up becoming the owner of the mineral rights for 2 acres in block 32, T3N, section 41, south half (S/2) (my deceased father’s share).
The company that contacted me in ‘16 offered me a small amount to sell my royalty acreage and i declined because i don’t need the money and i think it’s cool to own a piece of my family history. My great great uncle originally purchased this land.
Today i received a call from another company offering me over double what was offered to me in ‘16.
My question is, should i keep it? I don’t need the money, and was told they are probably trying to buy up royalty acreage before it starts producing. I don’t think it’s been drilled in 50 years.
I know I’m a total novice on this subject and have probably misused terms, but if someone could give me some info on this area, advice, anything, that would be great. Again, i know it’s only 2 acres which is small beans but i want to do the best thing! Thanks!
I inherited royalties from my father in 2005 to S/2 NW/4 of section 44 Block 32 ( T-3-N) in Howard County and am trying to find royalty payment info. I believe payments were made by Amoco in or around 2000. I am having trouble locating a royalty owner phone or email for info. Can anyone guide me?
It appears that Sabalo Operating, LLC is the company operating that section. They have one well in the West 1/2 called Mr. Dynamite 4-44 and another in the East 1/2 called Bow Tie 41-44. Here is a link to their website https://www.sabaloenergy.com. Give them a call and ask for their division order department. They should be able to give you the information you are looking for.
Thank you for your reply. I have spoken with them and they state the deed is null and void as there was no drilling for a period of twenty years. The Texas railroad commission web site shows production in 2000. I was hoping to find the operator at that time to prove payment to my dad. I’m afraid this is becoming a difficult battle. Thank you again though, for your reply.
Can you check the volume and page again? 535/276 does not come up with anything. 535/274 and 535/277 are lease assignments from Republic Mineral Corporation to two different people.
That document is an oil and gas lease assignment for leases in Sec 5 Blk 33 T1S. Do you have a copy of the deed to confirm Im looking at the right thing?
Got it, thanks. So this document conveys your father a Term NPRI (Non Participating Royalty Interest) into the section for a period of 20 years or so long as there is production. If a well isn’t drilled and producing oil in that 20 year period then the rights revert back to the individual that sold your dad the rights. If a well is drilled and producing within that 20 year term then the rights stay with your father until that well or wells stop producing. There was a well called the O.H. Petty well that was drilled in 1953 and stopped producing in 1997. Since there wasn’t another well drilled before the O.H. Petty well stopped producing your fathers rights reverted back to the individual that sold it to him.
I am sure this is all information that you already know but I hope this helps.
Thank you so much. I guess the confusion for me is that my Great Uncle, signed the deed over in 1983. He conveyed many leases to my dad. It wouldn’t be like him to sigh over a deed that was null. Perhaps is was just an oversight on his part. Also, confusing is that the TX RRC shows 15 BBL produced in May of 2000 on O. H. Petty.
Again, I am so grateful for your help.
I am glad I could help. At the time that it was assigned over to your father, it was a valid deed because the wells were still producing back then. Even if there was reported production in 2000 on the O.H. Petty well your father’s interest would have reverted back to your uncle in 2001. The term limit is an “either-or” deal so as long as there is production on the land your fathers deed is valid, even after the 20 year term limit. Once production stops after the 20 year term it reverts back to your uncle.
Feel free to reach out to me directly via email if you have any other questions, I am an experienced landman that doesn’t mind helping out mineral owners. cristian@crescentoaksenergy.com