How many mineral acres do you own? The greate the amount, the more leverage you have. I don’t know anything about this company or their personnel. They most likely are seeking to lease in order to flip it for a profit or are leasing it for another company. You should ask who they are working for. If they say for themselves, then you need some stringent assignment language in the lease. While the bonus and royalties are arguably the most important parts of a lease, you should seek legal advice on the entire lease. How the royalties are paid; what can be deducted, continuous development requirements; pooling; surface use if you own the surface and damages; are all important factors.
Thanks Dave, Nickel River land man referenced “his client” in the offer letter. In the letter he states, he is putting together a portfolio and my interest matches their criteria. I do have an exhibit A that I use in negotiating. Our mineral interest in Howard Co is only 5 acres and we have interests in several existing wells (Mittie Walters & Roy D Phillips). I am “putting this info out there” and if any owners nearby have received and/or negotiated a similar lease offer recently please share your experience.
Are you asking about lease rates or price per acre to sell?
Leasing is what they are interested in
My parents have oil and gas rights in Howard County, TX, 31.25% of 320.00 gross acres, Section 29, BLK 25, H&TC RR Co. Survey
Would like to know what current bids should be for this area. Thanks
Tom, go to courthousedirect.com and select texas and then howard county and do a g antor/grantee search in the “party” box with your grandfathers last name.
let me know if you need help.
Wow,Marcus! Thanks for that information. Makes things interesting, for sure. Any other information(or opinions) would be appreciated.
Barbara, my philosophy is to never sell minerals. Everyone has different needs, but unless you have a very small interest or really need the money, I suggest keeping them. Be very careful of offers. Some companies will do a bait and switch on you and offer less due to title issues. Others will say they are buying a specific interest but the fine print of the deed will say they will acquire everything you own in the county. Seller beware.
What is the best way for me to verify my mineral rights ownership? I was contacted about mineral right that my Grandfather obtained in Howard county but we were totally unaware of. Any help will surely be appreciated.
Tom and William, courthousedirect is useful to an extent except as far as I know you have to pay to view documents. For Howard County I use countygovernmentrecords.com, you can search for free as well as download documents at no charge.
These comments are quite helpful. I’ve never weighed in, but I now have a question. I’ve been approached by a company wanting to purchase my Howard mineral interests located in T-2-N. Anyone have an idea of the going rate?
Thanks, Marcus and Christian. I appreciate your comments. My interest is, indeed, small,; I believe the NMA is around 24 in Sections 24,28, and 29 of Block 31.
Tom, do you have a legal description of the minerals? If so, then in my opinion, the best way is to hire a landman or attorney to research the chain of title in the county records to determine what your grandfather owned. This is not cheap. Depending upon the complexity of the title, it could cost a few thousand dollars. You can also ask the party who is inquiring for a title report but there is no guarantee it will be correct.
Thank you Dave. The outfit that contacted me wants to buy these right. They are Powder River Mineral Partners. This fella had my Grand parents names, my parents names and me and my siblings names as well as the year my Grand father supposedly acquired the mineral rights. He gave me the location description. Can I verify this information on line?
Tom, It depends upon how long ago your grandfather acquire it and how he acquired it. Email your phone number to me at "email@example.com" if you wish to discuss.
Barbara - do you have the block and section number? That will help us give you ideas of going rates; They vary greatly on a tract-by-tract basis. I will say that being in any block of T2N is pretty much a good thing. Mr. Christian makes some good points, too.
My pleasure, Barbara. 24 nma isn’t a small interest by any means when it comes to minerals in a good area. SM Energy has permitted several wells in the sections adjacent to yours on the north and west. Their Viper well a couple of miles north of your sections has produced ~189,000 barrels of oil in just over 6 months, which is a very good well. For some rough approximation, $10,000 per net mineral acre on minerals carrying a 25% royalty equate to around 800,000 barrels of oil and related gas production if the production unit includes two sections like the Viper.
Regarding the prior question about Nickel River, we have had trouble getting them to close on offers they make. Not saying they don’t close, but in fishing terms, they seem to have a lot of lines in the water.
For the last few months I have been receiving royalties on three wells in Howard County from Diamondback Energy. Neither a notice nor a disbursement for January has been received and my emails and phone calls directly to Diamondback have not been returned. Does anyone know what’s going on?
what is the lease name? I can look it up on RRC to see if they are still producing.