Mineral interest

Hi, Kate!

I don’t think anything that Kitchen or Clint sent you would have your name on it (or not on it). That information would not be available in the Railroad Commission’s (RRC) Records (the links they sent you). It would only be available either from the company or, if your interests are appraised at being valued at over $400.00, through the County Appraisal District.

You wrote that you owned an interest in Section 305. Have you received an offer to buy it or something? The reason I ask is that most companies and people buying mineral interests or royalty interests are above board and legit but occasionally you run into one that knows something you don’t and that’s not playing nice.

For example, I have a Client Family that received an offer in the mail to buy their royalty interests in Howard County, Texas. Royalty interests that they didn’t even know they owned (they had inherited it). The company offered each of the 2 Sisters $1,600.00 and their Father’s Widow (2nd Wife) $3,200.00.

When the family contacted me and asked whether I thought that was a fair offer, I noted to them how some unscrupulous companies know that people have royalties being held “in suspense” (not being paid for any number of reasons) by an Operating Company and the people offering to buy their interests are, in essence, attempting to buy their mineral or royalty interests using their own money.

I took a look at my Client Family’s Royalty Interests and, sure enough, they are owed over $320,000.00 in royalties being held in suspense. The $6,400.00 the Creep Company had offered them was about 2% of what they are truly owed! An Attorney and I are now working with the family to recover their money.

I couldn’t find anything in the Reeves County Appraisal District Records under the name Milch. Do you know what name the interests would be listed under? A maiden name, maybe? Either way, I will give Reeves County a call Monday morning. They might not have their Mineral Tax Rolls online.

And do you know the legal description of the specific lands you own an interest in? Is it in the entire Section? Maybe the percentage or decimal interest of how much interest you own in the lands?

If so, can you send me that information? If you would like to send it privately, please accept my invitation to become A Friend on The Forum and send it to me that way.

The reason I am asking is that I took a look at the Hoefs Trust No. 1 Well in the Western part of Section 305 (see the attached pdf files) that Kitchen and Clint sent you information about and it appears to me that if you are included in that Well, whatever your percentage or decimal interest (share) of the royalties is, it is in a great deal of money. Something over $6,000,000.00 and the Well is still producing!

Not only that, at some point a company (perhaps Centennial, perhaps another) could drill at least 3 additional Wells in the Section. And that’s to just the single formation that the Hoefs Trust No. 1H is producing from, the Wolfcamp. Wells could be drilled to other formations as well.

If anyone has sent you an offer to buy your interests, they may be trying to rip you off in exactly the same way a company was trying to rip off my clients.

Either way, consulting an Attorney is always advisable in these situations. If you don’t have one, I can suggest a few very qualified Texas Oil and Gas Attorneys to you.

Hope this helps -

Charles Emery Tooke III Certified Professional Landman Fort Worth, Texas

817-4238933638CENTENNIALRESHOEFSTRUSTNO1H.pdf (925 KB) 818-4238933638CENTENNIALRESHOEFSTRUSTNO1HPRICEDATA.pdf (41.1 KB) 819-HOEFSTKWOLFCAMPFIELDRULES.pdf (155 KB)