I have inherited some mineral rights along with my brother& sisters from our mother in Logan county Oklahoma we have gotten a number of letters wanting to buy them but we don't know for sure what we have our grandmother always said not to sell but we are wondering what is going on in Logan co. we all live a long ways from there.
some of the letters say it is section 20 and some say section 17 so how do we find out what we really own
any helpful info. will be greatly appreciated
thanks Bill crabtree
Your grandmother was right ... never sell your mineral rights.
But, so that the Oil & Gas Leasing Help Group may answer your questions, appropriately, you will need to provide a legal description of where the minerals are located. Surely, someone has a copy of her Deed, Will, etc.
Good luck,
Pat
My advice is NEVER sell mineral rights. They are a very unique possession that costs you absolutely nothing to have, no maintenance, no taxes no upkeep what-so-ever, and by owning them you have a chance of making some serious residual income. Tell this company your interested in leasing and investigate what leases go for in your area. E.Mike
My suggestion is to ask the potential buyers how much they believe your mother owns and the legal descriptions. That will be helpful in the future for probate, filing notices, all sorts of things.
You would not be getting offers from companies to purchase your minerals if there were not strong potential for oil-and-gas development in your area. So just remember that these guys are not out to do you any favors, they are looking for suckers and people who are willing to sell cheap so that THEY can profit from your asset, not YOU. If your minerals are producing, meaning they are included in a drilling unit that has at least one well on it, the vast majority of O&G professionals would advise against your selling the minerals. Once you sell the minerals, you lose all future royalties attributable to that mineral ownership.
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Pete, you are telling it like it is, hope folks pay attention.
Pete Wrench said:
You would not be getting offers from companies to purchase your minerals if there were not strong potential for oil-and-gas development in your area. So just remember that these guys are not out to do you any favors, they are looking for suckers and people who are willing to sell cheap so that THEY can profit from your asset, not YOU.
I totally disagree with Pete. Selling mineral rights is not a Zero sum game. There does not have to be a winner and a loser. The only point that Pete is correct on is that someone wants to buy them because they are "prospective" for production. Although a mineral rights owner may get production someday, it is NOT guaranteed, nor will it last FOREVER. Furthermore, you may get a royalty check but that will never amount to the lump sum amount that many mineral buyers are willing to pay. So Bill, its like this...Do your homework, find out what more that one buyer is willing to pay, and if you need the money make the best deal you can get. If you want to sit on it forever, maybe you will get some production, it could be good, bad, or totally dry, but its at your risk. By selling now you are selling your risk and laying it off on the guy that wants to buy it. Only way you are a sucker is if you don't get more than one bid.
One more thing Bill, I do not know of any 1280ac units in that area, but in North Dakota, for example 2 sections (640ac+640ac) make up a 1280ac unit. Since Section 20 neighbors Section 17 to the south, that could be a reason for the conflicting sections.
If you have a Township & Range I'll tell you what is going on there.
Mr. Crabtree,
I never said that it is unwise to sell minerals because production is guaranteed or because production would last forever, of course that's not the case. I said that it is unwise to do so because if you are getting offers to buy your minerals it is for a REASON: because there is strong potential for development in your area. Do you think that the vultures are swirling around trying to buy your minerals because there is little to no prospect of making a PROFIT on their purchase? Of course not, they have done their homework and they seem to believe that they can make a profit by buying your asset, otherwise you would never have heard from them! That alone should be a red flag to you NOT to sell unless you really need the money. For a similar REASON, I don't see speculators swooping in to buy properties in inner-city Detroit or other depressed real-estate markets, because they do NOT anticipate making a PROFIT on those purchases. This is just plain common sense.
I find it hilarious that a poster on this thread stated that "a mineral rights owner may get production someday, [but] it is NOT guaranteed," and yet goes on to say that a royalty check "will never amount to the lump sum amount that many mineral buyers are willing to pay," guaranteeing that a mineral owner will NEVER make more money by holding on to his asset as opposed to selling it, and guaranteeing that a mineral buyer will NEVER make a profit by purchasing the asset. I guess in his world all mineral buyers are really dumb or really unlucky!
Pete W.
This issue sounds pretty "black and white." There is nothing abstract to it, except the Abstract where the minerals are located.
1. Never sell your mineral rights (Grandmother), and
2. Remember, that if you are getting offers to buy your minerals, it is for a REASON (Mr. Wrench.)
Try asking the offering party(s) to "clarify" the exact location and legal description of the minerals that they are wanting to buy.
Good luck,
Pat
thanks everyone for your help I am starting to try to find out everything I can about logan county there must be something going on there
It's on the fringe of a Play called the Mississippi Lime. The Jury is still out on that Play, but you can see on this map that the play dips down into the NE corner of Logan.
http://seekingalpha.com/article/1715242-mississippian-oil-play-another-setback
DO NOT SELL! It cost nothing to hold on to them. I just got royalty payment for NPRI held by my parents in 1959 when they sold the land. Never give up hope or sell out.
I wonder the IQ and financial standings of some of the posters making these comments as they pretend to imply theirs is superior. I wonder if their wealth management has really panned out as they suggest in their advice.
E Mike and Pat, your statements "unique possession that costs you absolutely nothing to have, no maintenance, no taxes no upkeep what-so-ever" and "It cost nothing to hold on to them" is completely false for most minerals owners. Many will tell you E mike that they have lost their mineral rights in North Dakota, Colorado, Texas and other states by not managing their mineral interest and I get taxed on my mineral rights in many counties of Colorado and Kansas. Statements of claim is required of some and change of address is what most owners should be recording as a part of their maintenance or management just to name a few.
Pete, I have sold minerals to these people who send out offers and I take offense to being called a sucker by you. One tract I sold in had never been drilled on ever so when an operator leased and did a spacing order I got offers to purchase so I reduced my risk and sold some, the well ended up a dry hole. I still own some if one of you want to buy some at the same price, the sucker price.
Mr. Metz,
On this Forum, I try very hard to address my comments only to the original creator of the thread. You are entitled to your opinion, just like I am entitled to mine. My opinion is that anybody who sells minerals in an area with strong potential for oil-and-gas development is a sucker, especially if those minerals are in production, unless they are getting a premium offer, which is very unlikely for reasons previously stated, or unless life circumstances demand that they do so. If you do not agree with my opinion, that's fine, I don't take offense.
Pete
Just goes to show your not always right but that is why it is your opinion, not necessarily factual and that people should not always trust your opinion. I now see you now have added exceptions to your rule. I see it all the time that it is sometimes wiser to reduce exposure and sell some at what might be a top rather than to go all in with hope on the outcome. The Niobrara and the Mississippian are great cases of such defense. I am sure your qualified to offer such opinions as calling people suckers. It is my opinion that a sucker is someone who trust your opinion.
billie,
look for pooling orders with your name, your mothers name and your grandparents name to find the legal, it might be you own in both sections. An order like pooling is where they are getting your name. In Logan county they are drilling Mississippian, Woodford, Hunton and Cleveland wells mostly in the Northern portion.
Wow... now I'm really confused on whether to sell... My father reserved rights on land that he sold, saying he would never benefit from them, but maybe his kids or grandkids would... Now, I have been approached with an offer to buy... The land was leased back in the 80's one time, but nothing since... This landman didn't search me out, but through a conversation with a friend, found out we had the mineral rights and wants to buy... The land is located in Columbia County, Arkansas and is near the Stephens Oil and Gas field, but since we haven't been asked to lease it, I don't know if there is any activity around it or not... I'm not sure how to find out...It scares me to sell, but we don't have many heirs to leave it to... The location of the land is Township 15S - Range 20 W... Sections 21-22.