NARO – Your key to understanding your minerals and royalties
I recently spent a little time on the MineralRightsForum to try to grasp what questions new mineral and royalty owners wanted to know. This month we will talk about some of your most asked questions on the forum and where you can find the answers at the National Association of Royalty Owners.
While the Texas Convention will offer several classes for those new to mineral ownership, if you cannot make it to the convention, there are resources on the website to help you navigate your minerals. Whether you are brand new to oil and gas or a seasoned veteran, mineral management is a complicated business, even if all you are managing are the family assets. The classes, articles, and webinars mentioned here can and should be attended and reviewed more than once.
Here are some classes that are offered at the Texas convention almost every year:
· NARO Foundation’s Introduction to Mineral Ownership
· NARO Foundation Mineral Management Review Course
· Glen Webb’s Mineral Management 101 Course
· Glen Webb’s Introduction to Estate Planning Course
Below are some of the most common questions that members need answers to and join NARO and NARO-TX to learn more about.
How do I calculate what I own?
The art of calculating royalties seems to be one of the most asked questions on the forum. Readers want to know how their interest is calculated and what net acres they own in property and in wells. The NARO website has several insightful resources to help answer this question. The blog section has an article called Calculating Your Net Royalty Acres that could be helpful in answering this question. The NARO fundamental webinar series also tackles this question. The webinar is called – How to Calculate your Gross and Net Mineral Acreage, and replay is offered for free if you are a member of NARO. If you have funny fractions in your deeds and wonder how those might affect your calculations, oil and gas attorney Pat Long Weaver will be discussing the topic at the conference. Former National and Texas President, oil and gas attorney Wade Caldwell, also has a webinar on the website discussing the subject - Unusual Problem of the Usual One-Eighth – A Legal Update on Fixed vs. Floating Royalties in Texas.
What does this clause in my lease mean and can I change it? What is a fair royalty in this brand-new lease?
Executing that first lease can be a scary situation, and many mineral and royalty owners want to understand what they are signing and why. While you should consult a professional before signing any document, educating yourself about the basic concepts is paramount to success. That is why NARO is here for you.
After you’ve reviewed the above information, you are likely to have additional questions that may need professional answers. NARO now has a webinar for members only titled – I Just Received an Offer to Lease My Minerals. What do I Need to Know? This webinar will help you understand leasing basics and be better prepared to discuss your leasing options with the professional of your choice.
What are my minerals worth? How and where do I sell them?
This is a question that often comes to mind during estate planning and when minerals have been inherited or somehow passed from one generation to another. If this question is on your mind, NARO is here to help. Since this is a common question, there are several webinars on the website to help you understand the many facets of valuing your minerals and getting ready for sale. One recent webinar discusses what to do when an offer letter comes in the mail. It’s titled – I Just Received an Offer Letter to Purchase My Minerals. What do I Need to Know and Consider Before Selling? The Frequently Asked Questions section of the website also discusses these issues.
How do I locate deeds, county records or legal descriptions?
While Landmen and Mineral Managers are well versed in searching for these documents, the courthouses in Texas are public places and open to the public to search. Oftentimes, the more initial information you can gather will help your professional help you and keep your fees down as well. Check out the webinar – How do I search for my Deeds and Leases or other important documents to learn some of the places to start and services available to you. Also be sure to review Ensuring Your Purchase Counts – Understanding the Recording Act Statutes for information on how the system works.
The National Association of Royalty Owners is also made up of competent, highly trained professionals who are available to help you with your oil and gas royalty interests. Many of these professional are also volunteers on the boards of the state and national organization. These are friends and supporters of NARO – people you see and talk to at convention and area meetings. Most of these professionals have completed the NARO Foundation’s Certified Mineral Manager Program and understand your management questions and issues. Many attorneys also serve on our boards and are members of the organization. Please check out the Supporter Directory to find the right professional for you.
Thank you for being a member of NARO-TX. I hope this article has helped you find new ways to get the most out of your annual membership. If you aren’t a member of NARO or NARO-TX, I encourage you to join TODAY. Please contact me anytime if you have questions on anything I write about or need help finding the right professional for your situation. We have so many talented people at NARO who are ready, willing, and able to help you navigate the complexities of the mineral and royalty space.
See you at the national convention September 30-October 3 in OKC. Come by the NARO-TX booth and grab some great NARO-TX merch.