I have three oil and gas leases in Osage County, each of 160 acres. How are such leases valued? I am away that there is a link to “Mineral Auction” on this site, but I need to understand what the lease is worth for allocation in my will, and to decide how to sell one or more if it proves simpler and less prone to disputes among heirs. Any ideas? Recommendations? Wisdom I should acquire?
If you have leases that say 160 acres, that is probably the gross acreage and you most likely have less. You need to go back to the deeds or probate documents. Since Osage county is mostly under the control of the Osage nation as far as oil and gas, someone on the forum with that expertise might need to answer.
Thanks for the response. These were originally my grandfather’s leases. He was an attorney in Osage County as well as a wildcatter going back to just after the Fairfax murders that are the subject of “Killers of the Flower Moon.” All three are still “active” and paying something every several months. But where the original lease documents are is going to be something of a challenge. These are mine through my mother who did not keep up with such things so long as they were paying something. Simply figuring out where to start may take an oil&gas attorney … which I am not looking forward to.
The first thing you can do (free) is use her royalty statements to contact the operators. You want the Division Order department. You will need her owner number from the statement. Ask what the net acres and royalty percentage that they are carrying for her. You need those two items and the names of the producing wells in order to get a value. If you already in pay as the next generation, then use your owner number. Ask for a copy of the lease for your files. Sometimes, they will give them to you.
If you are trying to probate her will, there is one path to take. If you are trying to do your estate planning, then a different path from here.