New to this realm. My dad owns 15/160 net mineral (15 acres) in Beckham County. Gets royalties from 4 different companies. Was wondering what the value is of the rights. Need to know for Medicaid application reasons.
Description says
E 1/2 SW 1/4 and W 1/2 SE 1/4 of Section 32 Township 12 north range 22 west of the Indian meridan
Pinned location would be nice
DHS values at 3X the last annual revenues. They use different formulas for unleased or leased but not producing, etc. There are special rules for income producing property if the value of the asset is $6k or less. When the value exceeds those amounts there are strategies to keep the minerals in the family while still qualifying for Medicaid.
Notice: Informational only. No attorney-client relationship is formed by this post. I am an Oklahoma-licensed attorney, but this is not legal advice. Do not share confidential facts in this public space.
Welcome to the forum. Here is the well information. Richard can help with the financial parameters.
The well names should be on the statements.
There are three wells in that section. See if these match his statements. I put the links for the OK Tax site (may not work) and the OK Corporation Commission Completion reports for each well. They are near end of life but have a few more stable years. Sounds like your dad may own 15 net acres. The wells are spaced at 640 acres. His decimal amount will be determined by the net acres/gross spacing acres x royalty. His might be 15/640 x 12.5% (if at a 1/8th royalty).=0.0029296875 If different, he might have a higher royalty or an override.
Preston 1-32 Atoka spacing at 640 acres. Completed 1996. Gas well. OK tax site lists Presidio Petroleum as payor. https://oktap.tax.ok.gov/oktap/web/_/#4 https://public.occ.ok.gov/OGCDWellRecords/DocView.aspx?id=1338974&dbid=0&repo=OCC&searchid=4512ad1b-f4a3-4f5a-addb-184a9683b1a3
Simmons 1-32 Morrow spacing at 640 acres. Completed 1996. Gas well. OK Tax site lists Diversified, Presidio and Aegis as payors.
https://oktap.tax.ok.gov/oktap/web/_/#16
Terry 1-32 Atoka spacing at 640 acres. Completed 1990. Gas well. OK Tax site lists Mustang Fuel and Aegis Physical as payors. https://oktap.tax.ok.gov/oktap/web/_/#11 https://public.occ.ok.gov/OGCDWellRecords/DocView.aspx?id=1372398&dbid=0&repo=OCC&searchid=4512ad1b-f4a3-4f5a-addb-184a9683b1a3
If you have any issues with simpler methods, and if his monthly income is less than $100/month from the royalties, there’s a high likelihood the medicaid value could be under $6000 (but no guarantee, because no appraiser can guarantee results, but also there may be things uncovered along the way). We’ve had success working with several care homes in Oklahoma for situations like this by supplying them a very simple letter that’s easy for us to output.