Inherited Land and Mineral Rights


#1

Our family inherited S/2 of the SW/4 of the SE/4 of Section 14, Block C-5, PSL in Reeves County. Since we are new to this we are clueless what our next step would be.

Any help to get us started would be appreciated.

Thanks,

Andy


#2

Andy,

Is your family currently leased?


#3

No we are not. My wife inherited the property a couple months ago.


#5

If the deceased signed a lease which was in effect at the time of death, then your family will be under lease. Parsley Energy is operating two Ranger wells which include Section 14, Bock C-5. These wells began producing in 2017. You should contact landman at Parsley Energy about the Ranger C4-6-14-4301H and Ranger C4-6-14 4303H wells and ask about whether your relative was leased and the need to get the revenues into your wife’s name. Was the estate probated and was probate recorded in Reeves County? You can file the probate in Reeves County. Also, you can go on TexasFile and search the records to see if the lease or a memorandum of lease was filed in the relative’s name. Midland: 432-818-2100 and Austin: 737-704-2300.


#6

I have a lease document from July 20, 2016 with my wife’s name (lesser) and Parsley Energy (lessee) but she was informed that the company went bankrupt and they never began drilling.

I/we are new to this and appreciate all the information so far.

What does Ranger C4-6-14-4301H and Ranger C4-6-14 4303H mean?

Thanks for the guidance,

Andy


#7

Someone has given you bad information. Is it possible that someone might be trying to buy her interest and get her suspended royalties? Did she sign the lease and receive the bonus from Parsley? If not, then she is an unleased mineral owner in the wells and may need to sign a lease now. Parsley Energy is still operating and has drilled the Ranger wells and both wells are producing. You must contact Parsley to get into pay on these wells. Those are the names of the wells. Try calling Kimberly McGrath who is a landman on a Dec 2016 letter to RRC - 512-505-5161 and she can likely refer to the responsible landman.


#8

Parsley is faaaaaaaaaar from being bankrupt…


#9

My wife has not received any payment from Parsley.

The lease was written and sent to her but never returned.

I appreciate the help.


#10

If you wife did not sign the lease and return it to Parsley, then she is an unleashed mineral owner in the wells. Parsley will not pay her until the revenues pay for 100% of the well costs. She may want to contact Parsley and enquirer about leasing her minerals to get into the wells as a royalty owner. Presumably she is getting a 25% royalty. The letter should have also stated a lease bonus as per net minerals. Net minerals are her fractional share in the gross tract. The gross acres should be described in the lease. If there are 20 acres and she owns 1/2, then her net minerals will be 10 acres.


#11

To our knowledge the grandfather never was offered to lease. He passed the land to his four daughters. Two of them passed within the last five years. The remaining two have had contact letters or phone calls asking if they would like to sell or lease.

The sisters were not interested and have given the 20 acres to my wife.

Two years ago a company contacted my wife to lease the land. The lease was drawn but my wife never signed and sent it back to the company

So that leads us to where we are today…

Thank you

Andy


#12

I think TennisDaze is giving you good advice. June 2017-April 2018, Parsley Energy’s RANGER C4-‘6-14’ lease produced 136,844 barrels of oil. It appears as though your wife’s minerals are involved in this well. Since her minerals are not leased, you might want to read Rights and Responsibilities of Mineral Cotenants.


#13

Yes, your wife is extremely lucky. I can show you a heat map of Reeves County right now. It’s one of the hottest areas in the Permian, especially block C5. We just leased some acreage there and got $22000 an acre just on the bonus. And the Lierle Report shows the high bonus in Reeves county at $30k per acre.

You should have no trouble getting that acreage leased if it’s not held by the Parsley wells. Either way you stand to make quite a lot on that tract.


#14

Thank you very much for the information. We are in the learning process.


#15

Wow. I wish my lease was worth that much. Good for you.


#16

If you could send me the hot spot map I would appreciate it. I am the very beginning stages of learning of mineral rights and location.

Thank you very much

Andy


#17

If we decided to sell (i know that is not the right thing to do) would it go through the company currently drilling on site?

We are Section 14, C-5. Any idea a ballpark figure if we sold?

Thanks


#18

We are debating on selling/leasing. I listen to the post on this site.

I heard my block produced 150000 the last year. At .25 royalty would that be atound 70k a year? Trying to get a grasp since this is new to us.

Thanks