My Father-In Law was given legal forms to sign over mineral rights on a property in Reeves County, TX. They offered just over $4000.00 total. Can someone tell me if this would be a fair value? A-321 BLK 13 SEC 265 AND A-1867 BLK 13 SEC 266
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My answer would be a resounding no. Call Wade Caldwell. He’s an attorney listed under professional on this site. Based in San Antonio. He can advise you well.
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While there are many factors that go into the value of the mineral rights, $4000 sounds like a very, very low offer. Please call Wade Caldwell’s office in San Antonio. We used an attorney there, J. Alex Garcia, a year ago and he was able to value our interests, shop them around and we received and accepted a 6 figure offer. The name of the law firm is Caldwell, Clark, Fanucchi and Finlayson.
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Agree with the other responses that $4K is very low. $4K per each mineral acre would likely be very low let alone in total for all your minerals. In addition, the groups sending “legal” papers in an initial cold contact by mail are usually the least reputable in our experience. These tend to be the groups trying to dupe people with official looking documents and sometimes even checks so they can obtain minerals on the cheap. They are hoping for inexperienced owners to simply sign away their holdings for a quick win. As others suggest, give a call to an attorney to find out more about the minerals, their true value and to vet any purchase interest. Good luck.
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Never sign a sales contract without understanding exactly what you own and what it is worth. There are multiple horizontal wells crossing through these sections. So your father-in-law should be receiving royalties from Chevron and/or Apache. If he is not being paid, then you need to determine what minerals he owns and contact the operators. If he is not in pay, there will be royalties in suspense with the operators. The value will depend on how many net mineral acres he owns in these 2 sections and the royalties which he is receiving each month. Think of this as the location of a house, its size and the lot size, all of which are factors as to value. Once you know what he owns, then you can seek advice as to value.
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There are tax rolls (records of who owns what for the purposes of property tax assessment) for the Charles Goodnight wells in 266-265. One would assume that FIL is in those tax rolls, thus is getting an offer based on owning some fraction in those wells. They put sec 265 and 266 in the offer because they don’t know specifically what he owns, just that he is in the tax rolls for the wells in Sec 265 and N2 of Sec 266. That is par for the course for small interests and small offers. He may not be getting paid on them, but they have been producing for 5 years or something. My guess is he is someone on the below list (anyone with a male name and the right level of ownership)…
| WILLIAMS CASEY D |
|---|
| WILLIAMS HOWARD F |
| RICHARD G BURBANK HERITAGE TR |
| WILLIAMS JAMES E JR |
| PREWIT STEPHEN & MONICA REV TR |
| CRANTON FAMILY TRUST |
| NEECE REV DECLARATION OF TRUST |
| SCHLUETER THOMAS E |
| STERLING MI-RO PARTNERS LP |
| LOWE WILLIAM DAVIS |
| ENGLAND TIMOTHY NICHOLAS |
| ANDERSON SEAN MICHAEL |
| STERLING MI-RO PARTNERS LP |
| ADAMS MICHAEL A |
| ADAMS ROY |
If he isn’t then I am confused, which could easily be the case, or I filtered the list down way too far. But yeah, nobody can tell you if that is a fair offer or not without knowing what your FIL actually owns.
Simplest thing:
- If offer came in the mail unsolicited then its not the greatest offer in the world
- The people who made the offer can probably tell you what you own.
- If he has never gotten paid by Chevron, contact Chevron mineral owners hotline or whatever and see what it will take to get taken out of suspense as there is probably a decent amount of $ there owed to him.
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