Need help in Oklahoma


#1

Hello,

I need some help. A family member recently passed away and left some minerals to me, not much though. I keep getting letters and what not asking if I’d like to sell. I don’t know the first thing about minerals and don’t live in the area. Just want to know the price range companies are paying for minerals in the Grady, Canadian and Blaine area. Thank you for your time.


#2

Huge question there. First of all, don’t sell until you understand the value of what you have. If you just inherited, make sure that you have filed the probate in every county district clerk’s office where you have minerals. They need your address and a description of the minerals. Obviously, the buyers have tracked you down somehow, so that might already be done.

Then get informed about each of your counties and what is going on in them. Your list includes the SCOOP, STACK and MERGE plays. Read everything in the forum on those counties. Look up in the search (magnifying glass upper right) to see if your section-township-ranges have been mentioned.

Then look up the investor presentations of the operators in your area. You might start with Continental Resources, Newfield (just bought by Encana), Marathon, Gulfport, Devon, Cimarex to name a few.

Then come back and ask particular questions in each county. Depending upon where you are, you need to find out if you have royalties coming to you. Also, you want to ask the executor of the estate what the minerals were valued at at the time of death. Very important! If you sell and don’t have that number, you will be taxed for capital gains on the whole amount. If you have the step up value, then you will be taxed less. But I encourage you NOT to sell until you understand your situation. The minerals will still be there. You may make more in the long run by hanging onto them and becoming an informed mineral owner. It takes a bit of time, but is quite do-able. Even “not much” minerals can provide an income stream for a long time. Most offers are lowball, so if you eventually decide to sell, you need to know what to ask for.


#3

Have the estate been probated? Are the minerals in your name on a legal marketable title basis? If not, you may wish to do that. Having clear title will help in two regards. First, if there is production, you should get it in your name and start receiving proceeds. Its a little like a rent house. The rent house has value based on how much income you receive from the rent house. If you don’t have good title and haven’t contacted the producing oil company, you don’t know whether the royalties (kind of like rent from a rent house) is a small amount or a large amount. The value is, generally, based on income you receive or can potentially receive. Second, having clear title will add to your market value.


#4

I have the same quandary. How can I find out if my area has activity, NW/4 Sec 23, Township 1N, Range 8W.


#5

No leasing activity in the last 999 days. Hallett #1 (SW4) and Cash #1 (SW4) are producing, but not in your quarter, so you do not get royalties from them.


#6

If this was in a Trust a Trustee’s deed should be provided. If this was a probate, there must be a probate order from an Oklahoma court even if it was probated in another state. A probate order from one Oklahoma county is fine as long as it has all of the descriptions. Then it must be filed with the registrar of deed (county clerk) in each county were the minerals are located. Richard Winblad, Attorney