Chris,
Everyone tell me if I’m wrong.
If there is ever a well developed for the section, the 40 acres could bring in more than $10,000 a month for year before dropping off. So maybe a Million dollars over 20 years. It may never happen, but the reason anyone will offer a few thousand an acre for mineral rights is because they think or know someone is going to drill soon, and expect to make a huge profit.
Thank you SO much Martha, Gordon, Ronald & Virginia! Your comments and ideas are valued & appreciated greatly. We have lots to do & tons to learn!
Oh dear! My Mom is in long term care and running out of money…so she is allowed to sell these mineral rights per the Elder Attorney we consulted with. Thusly, I need to pay her fair market value. Her Sister shares the rights and is keeping her portion. We are still in shock…didn’t know these existed until a small oil company contacted them to offer a lease…all fell through but we had no idea the rights existed.
Gordon,
There are a few good wells that will bring in over $10,000 for 40 acres per month. So, why would anyone want to buy your minerals? Usually an investor figures a payout within the first 2 to 3 years. When they get a good well, they may get it back in a few months. But, remember the original mineral owner got all his money at one time and the investor was hoping to get a good well. Usually when you start seeing lots of good prices for minerals, they are hitting some good wells nearby and getting ready to drill in your area. It’s sad for me to see some of the investors laugh about how cheap they got the minerals off a farmer and how much they are making now. Also, investors buy minerals to decrease the amount of taxes they pay per year.
Chris M, general opinion is not to sell, and I would never sell mine at any price. But it is nice that you can keep it in the family, and remember, when your well(s) come in and your poor lil mo is facing dire straits, remember how she changed your diapers and fed you Heinz split pea soup when you were 1-3 years old, and forget how much she charges you for the acreage. 
Chris,
There are several ways to sell the minerals. You can get fair market value by having 3 people that are in the real estate, auction & banking business give you an estimate. Some time this will work.
But, since she is already in a long term care, you would probably need to get a certificate appraisal to do it. The Elder attorney should have given you information on how to do this.
Then, if she doesn’t need all the money at this time, you may want to set up a payout schedule for you and your sister with right of survivorship in case she passes before it’s paid out. You need to talk with an attorney in your state on all of this.
Gordon,
I don’t think the offer from oil companies would stand up for Medicaid auditor. Also, you have to be careful how you get your mother’s name off things once she is in a home. It should have been done 5 years prior to going into a home if you wanted to keep anything.
My Mom has been in and out of rehab and used up all her Medicare days so we moved her into long-term care. That’s what Diabetes does to you! We just learned of the mineral rights last Fall…my Grandfather bought them in the 60’s for his children…but never told anyone. Thusly the surprise! Appreciate all the help!
Gordon and Chris, Oklahoma used to have certified mineral appraisers, but I haven’t heard of any since horizontal drilling started in Oklahoma. NARO used to have a list of Oklahoma mineral appraisers and NARO may be able to help you find someone who can help. I’ve never heard of Arbuckle Mineral Company, but there are a lot of private investment LLCs that are leasing on speculation right now. Double Eagle is one that has offered to lease my Payne minerals and one of the owners is a former Devon executive.
It is always sad when people get old and can’t take care of their needs. I was very thankful my parents had the money to pay for some care and stay at home till my father passed away. Martha is right, it can easily cost over $4000 for the home and a lot more to keep them in their own home.
Please be careful on getting your mineral appraised as if they are appraised too low and she goes under Medicaid to help pay for the home. You may be liable for paying for her care till they are sure the minerals sold for a fair market value.
Boy, this is a rough crowd. Mom has diabetic wounds on her feet but we have great docs… she can’t walk… thusly the need for long-term care. It is a very nice community. She wants to sell me the mineral rights prior to running out of money and going on Medicaid. My grandfather would want to keep them in the family. She lives in Oklahoma (by choice, where she grew up) and I am in Arizona with my husband and kids. Her cost each month for a single room is around $8,000 plus meds co-pay. She will probably outlive all of us. If we ever gain any profits they will be shared! Thank you again for all the help and inspiration!
Chris, you need to find out specific details before making any moves & Martha may be right to contact the NARO first. If you would like, I’ll be more than happy to help you find out how to get a Cert. Appraisal. It shouldn’t take but a couple of calls to put you on the right path! Also, I think you mean Logan County. I don’t think there’s a Logan City!! One more thing, don’t take anything here personal. I think some have gotten a little too close to flaring off the gas to their wells, like Ron, & inhaled a little too much! TeeHee Really, some may act bad, but they’re some of the nicest, most knowledgeable people you’ll find in this business!! Hang in there for both you & your mom, we’re all in this together to help each other!! Email me if you’d like: factualresearch@yahoo.com
This can be a real blessing or just a pain, right now. If a well is developed you may be able to upgrade her care.
I get letters from several companies wanting to buy. If you ask each for an offer, they may give you offers you can use for valuation. As long as there are no Lease offers the value is only based on speculation, so it should be low. I will send a list later, but Arbuckle Mineral Company is one. Does anyone have negatives about Arbuckle?
Gordon,
First Medicare doesn’t pay for anyone’s care other than the hospitals and a little rehab. You are thinking of Medicaid. And you can’t own much to get that. But, I think after you are out of the hospital and rehab, 30 days you can re-qualify, not sure as that law is always changing.
I think you were asking if anyone heard of Arbuckle Mineral Company.
I think it’s a fairly new company that buys minerals and G. Johnson is the CEO. If I have the right person, he used to be a landman for Chesapeake. He was with some other company in the Dallas-Fort Worth area, can’t remember the company name.
Chris, Nursing homes can use funds in your mom’s checking or savings accounts, at their discretion, for her care, so Virginia’s right about getting an attorney to help you protect the money she receives from the mineral sale. Private nursing facilities can be an upgrade, but they are very expensive and sometimes cost $4000+ per month.
Ron, My 90 year old father-in-law had to go to the nursing home when he became unable to walk and think clearly, because we did not have the money to hire 24 hour nurses and totally equip his home so we could care for him. However, I brought my dad to live with us when he became unable to care for himself. Both ways it was hard for everyone.
Whoops! Sorry Kenny for posting my email! On my iPhone & I couldn’t find the edit button.
Mr. Wilson, I will agree with you on gold. Really, gold should be described as noble (non-corroding) metal used in jewelry and sometimes useful in electronics, but it’s shiny and people like it and place too great a value on it in my opinion.
If it takes expert examination to tell the difference, what makes a diamond more valuable than a cubic zirconia, both are equally decorative.
I better get back on topic.
Mr. McKenzie did say estate value and annual income, so I presume he was writing about producing minerals.
And diabetes doesn’t put mothers in rest homes, children do.
These are indeed tragic conditions, but bottom line is if we live by this rule, then we might consider putting our babies in rest homes, too, they are just as unable to care for themselves.
Chris, we got a value for non-producing royalty from the Oklahoma Tax Commission that we used for Estate Taxes. They have it valued by County. Producing is done by three times the annual income for oil wells and four times for gas wells I think, or it may be the other way around. They can tell you.