I recently became 1/2 owner in a producing oil/gas well in Oklahoma. I am concerned about liability exposure and wonder if I need to form an LLC to protect my personal assets from potential liability? I’d like to know what most people do.
What ‘type’ on interest do you own?
I don’t know exactly how to answer that. My aunt recently gave me 1/2 interest in some property she owns the “mineral rights to” in OK. There is a company that has been drilling there for over a year. Years ago she sold the surface rights but kept the mineral rights. That’s all I know. How many ‘types’ of interest are there?
I wouldn't think that you would need liability for mineral rights unless you were actually participating in the drilling and operation of the well. You own the mineral rights and have the right to lease them. There will be plenty of people wanting to buy your mineral interests, but I would never sell mine and was told by my boss that he would never sell his. Leases are being sold at a premium and I would negotiate an offer higher than any initial offer, or higher royalty, always holding only those producing formations and releasing the remaining non-producing formations so that you can re-lease those to someone else. May I ask where the minerals are? I have quite a bit of records that I keep track of activity on and know quite a few of the bonuses being paid out.
Jack Wilson said:
I don't know exactly how to answer that. My aunt recently gave me 1/2 interest in some property she owns the "mineral rights to" in OK. There is a company that has been drilling there for over a year. Years ago she sold the surface rights but kept the mineral rights. That's all I know. How many 'types' of interest are there?