Looking to lease my interests in Section 25 6N-8E? Any idea on values? I would like a 25% lease - has anyone done better than 20%?
Vardeman, getting a 1/4 lease in that part of Hughes is not very common. The latest pooling close to you was in S 13 in March 2017 for $100 3/16 and $0 1/5. The margins just arenāt high enough for many companies to do 1/4. I only see two 25% leases in 2017 in the whole township, There were in S 27 by Dudley Land Co.
I have received an offer of $375 per mineral acre for 1/8 royalty or an 87.5% net revenue interest or $300 per mineral acre or 81.25% net revenue bonus for 3/16 royalty.
Two questions. Are these reasonable? It seems low. Also, what does the Revenue interest mean? It is the first time I have heard this.
Hello, I have a question regarding inheriting mineral rights in Hughes Co. My mother passed 2 years ago and Iām helping my dad inherit her rights. The wells in question are currently being leased by Trinity out of Houston TX. They provided me with an Affidavit of Death and Heirship form which Iāve had completed and notarized. The brief instructions from Trinity said completed form must be filed in Hughes Co.
I called the Hughes County registry office and spoke to a gentleman that didnāt sound real confident in his instructions what to mail in and the process, so Iām hoping someone knowledgeable might provide some guidance. Per his instruction I can mail in the form and death cert and they will file it, but he wasnāt sure how the operator (Trinity) would become aware of filing. Am I on the right path? To our knowledge my mother did not leave a will or at least we have not found one yet.
Allen, I have no legal training whatsoever, so others may have more relevant comments to your questions.
If I were in your situation, I would file the affidavit with the County Clerk and ask that the original be returned to me. Then a copy of the filed document would be mailed to Trinity for their files, showing the book and page for their future reference. A followup call to make sure that their needs are satisfied would be made.
A concern for the future that I would have, is doing whatever it takes to achieve a marketable title to these mineral rights in your dadās name. That will be important in the future so that he can sell or transfer title, or bequeath them.
I know this is going a bit further than you asked, but you and your father may wish to prepare or have your wills prepared. If you read these forums very much, you will see many others dealing with problems that would have been more easily dealt with in a timely manner. Just my 2 cents worth. Maybe more knowledgeable folk will provide a better answer.
Wesley, that sounds like a logical approach and good advice. Thank you.
Just a bit more information that may help you. If someone dies intestate in OK, they have very specific rules about how the assets are divided-especially between spouses and children. If the person dies in another state, but their assets are in OK, then you have to abide by the laws of that state.
First time to post and new mineral right owner. I would really like to get to know the people I share land with. I would also like to get to know my neighbors. I have S12 T6N N9E NW NE, S6 T6N R10E l3-5, S6 T6N R10E SE NW, NW/4 of 6-6N-10E and SW of 6-6N 10E. If I share land with you, please contact me. I would really like to meet you and share information. I am very new at this. I have been self educatiing myself as much as possible. Thank you for your support
Terra, Welcome to the Forum. If you are new at this, I would suggest that you read the helpful blogs at the tab at the top, read the last six months of the Hughs comment wall and discussion forum, and read Mineral Help tab at the top.
There has been some leasing in 2017 in 12-6N-9E and quite a bit of leasing in 6-6N-10E. If you are a new mineral owner and just received your mineral rights, make sure that your name and address and description of your rights are filed with the county clerk. It is a minimal fee to do so. Then the land men can find you.
If your ancestor production, then you need to contact the operator to get the royalties turned over to you.
Terra, we are ānear neighborsā, a few miles to the SE of you, where production began about 10 yrs ago in the Woodford formation. My wife and I knew very little about mineral ownership. We have learned a lot since, and wish we had known more before those initial leases. Martha Barnes is such a valuable and generous helper to all of us. If you are not leased yet, come back to this forum for assistance before signing anything.
In the meantime, you will want to learn to use the resources of the Oklahoma Corporation Commission. Their printable booklet āBasic Information for the Oklahoma Royalty Ownerā at http://www.occeweb.com/og/Basic%20Information%20417.pdf is a good place to begin. As you learn to search their data for information on activity in your sections, if you have trouble, come back for help.
See page 67 of the booklet, instructions for searching the Mineral Owners Escrow Account for unclaimed funds related to pooling and royalty payments to unlocateable owners. You may also want to search the State Treasurers Unclaimed Property site. You may not find any funds, but I and many others have. Be sure to use all possible variants of names and initials of any family members from whom you may have inherited.
Take a look at the NARO (National Association of Royalty Owners) website http://www.naro-us.org . Our investment in membership and attendance of the Oklahoma Chapter has been well worth the cost in our particular case. That may or may not be the case for others.
Good luck in your new venture!
Thanks M Barnes I will read the articles suggested. Appreciate it
HI Wesley Skinner,
I have just now downloaded your recommended booklet āBasic Information for the Oklahoma mineral owner.ā I did ānotā know about this booklet.
Thank you. I have been with the forum about 3 years now and have benefited multiple times from your willingness to educate those of us who are struggling to be more informedā¦Leta C.
Leta, happy to share and Iām still trying to learn!
Hello Susan,
If you believe that your counter offer is fair/reasonable/etc, then you might consider going through the pooling process in which mineral owners can select the option of interest and lease bonus that in most cases maximizes their financial interests. Be advised that there are cons to this strategy which include 1) you donāt get your lease bonus money now but in the future which is sometimes a long time and 2) you have to track the pooling process to ensure that you donāt get left out of the pooling options selection process (which I am convinced that some operators deliberately do, especially to small interest owners who they believe will not fight it). I have utilized this strategy before and been successful but in all cases it was a long wait (to get lease bonus money) and I did not receive a pooling options selection letter in one instance and was assigned the default lease option and had to go back and fight this with the leasing agent / operator (I won without an attorney but it was a significant hassle).
There may be other cons and / or experiences to this approach / strategy that other members of the community will want to contribute.
You should definitely read about pooling in the document āBasic Information for the Oklahoma Royalty Ownerā that W. Skinner attached in several comments below your comment.
Robert
We have 25 NMA in Hughes County (6-9N-10E,7-9N-10E, 18-9N-10E) and have been back and forth with Calyx (original letter was from Compass Land Resources) . The current āfinalā offer is a $200 bonus and a 1/5 royalty.
I countered at $250 bonus and the 1/5 and got a ānoā so I would appreciate any thoughts on this offer. Thank you!
Susan, good try, but it bumped up against their max they would pay. The closest poolings to you only had $225 for 3/16, so $200 for 1/5 is reasonable. The terms of the lease are more important than the bonus. Make sure you have no post production costs whatsoever. No āhoweverā increased valueā¦
Hello Robert: I actually have had the opposite experience with the bonus payment. I have always been paid when leasing happened through pooling. Onthe other hand, I have signed a lease outside of pooling, and was never paid the bonus. That organization did formally release the signed leases, but it was disappointing. This situation did happen in Hughes County in 2014, so I am hoping for a better outcome now that leasing is picking up here!
Michael,
Welcome to the forum! You will learn quite a bit from each county!
First of all, read over the last six months in each county to get a feel for what is going on. Read the blogs at the top. Read the doās and donāts of leasing if you arenāt familiar.
DONāT sell anything until you get a good handle on what is going on. Any time someone wants to buy, they think they will make a profit off of you and you need to get as informed as possible before making a decision.
That being said, there is a huge land play being made in Hughes with some deep pocket money, so hold tight. There is quite a bit of horizontal drilling in that township and more headed that way. Sec 12 has a brand new order regarding a horizontal well from 36 south into 1 and 12 (hence your offers). So donāt sell that one for sure right now.
Iām new to this, and have a slew of mineral interests in umpteen Oklahoma counties. I was born in Pott. County, and live in McClain County. I guess hello, is what Iād like to say first.
Iām glad I found this forum! Just 12 more counties to join and Iām set!
Secondly, I have a question:
T:8N R:10E S:11 & 12
Cambria Energy keeps trying to buy several of my mineral interests in the above sections, even though they are leased by Calix Energy III. I donāt know that I have been receiving payments from Calix, or if those wells are still producing at all. They are offering 1,200.00 to 1,500.00 an acre though, so Iām guessing those wells might be plugged and holding, or barely pumping? Does anyone know? Does anyone know about Cambriaās quest to buy up all these interests, and leases. I know they must have a massive postal budget. I get a letter addressed to my mom (who died 18 months ago and left me all these mineral interests) about three times a month. I wish theyād pay their land man to make sure they send out their letters addressed to the current, not previous owners, tooā¦lol Anyway, is there an obvious reason Calix isnāt producing, or that Cambria is trying to buy up everything?
Rudy, I inherited them, as the only son and sole heir, and the paperwork listing all know interest descriptions was entered into all the counties and filed. My comment was because just yesterday I received three letters from Cambridge about 3 different interests, and they were addressed to my mother. I know the full probate with my info was filed in Hughes Co, as well as the others, but they still send the stuff to my mother, not me.