Antero, a large West Virginia Oil Company, is moving to partition our mineral rights on a large tract of land. We have been in constant contact with Antero and trying to negotiate an old lease. Antero is not wanting to negotiate and I think they are trying to force a sale at "market" value by partitioning my sister and me. Crazy thing is, we just found out there is a horizontal well on the property since 2009 that we have not been getting paid royalties for. So, there should be an escrow account somewhere, but Anterio can't find it, or isn't fessing up to it. Who knows a great Lawyer to do battle with Antero? Mineral rights are located in Doddridge County W.V.
Market value for acreage with a producing well not under lease could amount to quite alot. I would make sure that Antero knew that if it comes down to brass tacks, they are not going to be the owner. For a lawyer, I have heard that Kyle Nuttall does a good job.
We've been offered up to 6 thousand per acre by phone, nothing written down. Is this the going rate for acreage with a horizontal well not leased?
I would say it is not. Frankly at $6k they would probably hear my laughter. At $25k they might start to have my attention.
Oh, wow, that's different.... if they force a sale... I'm guessing Antero wouldn't offer anywhere close to this.
That is why I mentioned it, if you think Antero is ready to go through with the proceeding, I would beat them to the punch. I think a judge would think it silly to force a sale if you were already marketing your property yourself. Antero probably wouldn't like the competition, probably from people who could and would fight back. Antero is not looking for someone to take a minority interest in the present well and pay for their part of future wells they are wanting to buy the interest or lease from somone giving them 80%+ revenue interest in the minerals. You could possibly work a farm out agreement with someone and cut Antero out. Sometimes you have to look at what they really want and hit them where they live. Defeat the entire purpose of what they are trying to do.
Laura Matundan said:
Oh, wow, that's different.... if they force a sale... I'm guessing Antero wouldn't offer anywhere close to this.
Can you offer any precedent to her that $25,000 has been paid, or is that just a wild figure that you pulled out of some hat arbitrarily? - in the area where she owns minerals -
r w kennedy said:
I would say it is not. Frankly at $6k they would probably hear my laughter. At $25k they might start to have my attention.
Well Dave, I said that at $25k they would have my attention. Perhaps you don't understand that she is unleased with a well on her minerals? Can you say mineral trespass? With a multi-well development planned? I would let the market set the price by using an online auction house. I believe the free well that might have cost as much as $5k per acre to drill and complete would provide incentive to a buyer to be a little more generous. Can you provide specific information that I am wrong? Lets put it this way, if the acreage was not worth at least $25k per acre, I doubt Antero would be going to this much trouble.
Dave, now that you have had your fun trying to snipe at me, do you have any suggestions of your own? Or did you just stop by to try and snipe?
I don't think you have to be worried about being roused anytime soon.
I guess that you can't quote her anyone in her area that has been paid the 25K that would excite you.
Perhaps I do understand that there isn't any precedent for that.
I doubt Antero would want to set it either.
I see, so you are saying you have no specific information that I am wrong and no suggestions of your own.
I also believe you are applying the standard of mineral owners who have not thought out the implications.
I think more in line of prices between companies for proven acreages, there is a well already there after all.
The proper thing to do is to lease before you drill, then you can at least moan about the risk and try to pay a lowball price. When this order is not followed and you commit mineral trespass, forgiveness should cost more than permission in advance because if the well was a duster, Antero would not offer to pay a lease bonus after the fact.
You threw it out there. She can tell them what you said.
I hope she will keep us posted.
I did not tell her to tell them anything Dave, I told her to do things that do NOT include Antero. I don't know where you come up with this stuff, it must pass through a filter in your mind and get changed to what you wished I had said, before it hits the cognitive functions.
Whatever.
Dave Quincy said:
You threw it out there. She can tell them what you said.
I hope she will keep us posted.
I never said you told her to tell them anything. Are you blind?
I said she can quote you about the 25K since you threw it out there.
Maybe she will give us their reply, whoever that may be.
Since you brought it up Dave, who might they be? You are going way out speculating about your own speculations.
I gave her advice that she could seek a farmout agreement, I also gave her advice that she could try and sell her minerals with the existing well and no lease herself online and let the market set the value.
I also did not quote her minerals value at $25k, I thought we had already been over that, that I merely stated that $25k would have my attention. Dave you are obviously not here to offer anything constructive.
Dave, do you deny that $25k per acre has been paid in the past for a working interest on proven mineral acres with a well on them?
With a horizontal well on the property since 2009, she could well have more than $6k per acre in royalty and or revenue payments sitting in a suspense account.
You threw the 25K out there.
She can quote you and let us know what they tell her. They being whoever she chooses to quote your 25K figure to, if anyone.
They may just tell her that they don't care about getting your attention.
I've given a lot of constructive advice here, and have been thanked accordingly.
Whatever Dave.
Laura, if you play Antero's game, the odds of winning are less. If you can take the initiative out of Antero's hands the odds of maximizing your asset are better in my opinion. If you want to try to work a farm out agreement with some company that wants to invest in wells in your area, I would start putting out feelers as soon as possible. If you want to sell your minerals at auction online I believe some allow you to set a reserve price. If you have received an offer in the mail, usually the first or even the second offer are not the most the buyer is willing to pay. You might search what offers for leased acres are in general, some in Oklahoma are up to $17k for acres leased at 3/16. Unleased acres where you still have 100% to sell and not just an 18.75% royalty interest to sell could be worth alot more, depends on the acres in question. I would also suggest checking out the WV state and a few of the county groups for your area, if you have not already done so.
I'm sorry your thread has been invaded by someone who has no advise for you beyond he disagrees with me. It happens. I would not blame you if you deleted this thread and started another one. I have said what I have to say and the other person has said they disagree with me but the bickering may prevent someone else from posting who may actually have something constructive to say. In all cases, I wish you the best of luck.
Dear Ms.Matundan,
If Antero is a mineral interest owner where you own minerals (same tract), they have the right to partition. Nobody is forced into co-ownership or joint ownership with another.
Partition is a term referring to division of real property among owners. It may be voluntary, by agreement or partition deed; or, if no agreement is reached, one or more joint owners may seek a court-ordered division by means of a partition suit. I
Note that partition is not the appropriate remedy when there is no common title or title is in dispute. A suit to quiet title would be the appropriate way to go.
There are two kinds of judicially-ordered partition: partition in kind, which refers to the actual physical division of land by metes and bounds; and a judicially-ordered sale of the property, when partition in kind is not feasible or cannot be achieved fairly and equitably.
The right to a partition is absolute so long as the petitioning party is a joint owner of the land to be partitioned and has an equal right to possess it with the other joint owners, subject to any leases.
There is no effective defense to such an action that is properly brought by someone who qualifies.
However, the right to partition may be waived or contracted away. The real fight in many partition cases is about the pro rata shares of the parties and whether or not the property should be partitioned in kind or sold (partition by licitation). This can easily done by judicial notice and the sale conducted on the courthouse steps.
Sounds like you have your hands full.
Buddy Cotten
Mr. Cotton, here is the opening paragraph of code in Wv. on who can bring partition suit. The code says, other than lessees of oil and gas minerals. How do you interpret this when it comes to an oil company bringing partition on a mineral owner to get them to sign a lease?
§37-4-1. Who entitled to partition; jurisdiction; state as party plaintiff.
Tenants in common, joint tenants and coparceners of real property, including minerals, lessees of mineral rights other than lessees of oil and gas minerals and stockholders of a closely held corporation when there are no more than five stockholders and the only substantial asset of the corporation is real estate, shall be compelled to make partition, and the circuit court of the county wherein the land or estate, or any part thereof, may be, has jurisdiction, in cases of partition, and in the exercise of that jurisdiction, may take cognizance of all questions of law affecting the legal title, that may arise in any proceedings.
DT, the operator will just bring the suit in the name of the lessor who has already signed a lease. The law says who can bring the suit, it does not say who has to pay for it.
DT said:
Mr. Cotton, here is the opening paragraph of code in Wv. on who can bring partition suit. The code says, other than lessees of oil and gas minerals. How do you interpret this when it comes to an oil company bringing partition on a mineral owner to get them to sign a lease?
§37-4-1. Who entitled to partition; jurisdiction; state as party plaintiff.
Tenants in common, joint tenants and coparceners of real property, including minerals, lessees of mineral rights other than lessees of oil and gas minerals and stockholders of a closely held corporation when there are no more than five stockholders and the only substantial asset of the corporation is real estate, shall be compelled to make partition, and the circuit court of the county wherein the land or estate, or any part thereof, may be, has jurisdiction, in cases of partition, and in the exercise of that jurisdiction, may take cognizance of all questions of law affecting the legal title, that may arise in any proceedings.
Ok, new information. After spending a couple of hours on the phone with different Anterio Lawyers and doing more research on the wells - Anterio says that this land is not under partition and there is no horizontal wells. Now, I'm beginning to think this was all just a scare tactic to get me to sign the "lease ratification" Anterio sent me long time ago. I had refused to sign because the original lease sucked and I wanted them to increase the royalties. The original Anterio lawyer that said if we sign and send in the lease ratification right away - she would try to stop the partition...... this lawyer is no longer returning calls. Hummmm. Well, of course I signed it, and mailed it right away - not wanting to lose the land. Uugh! What a sucker I am. Should of made the phone calls first, now what? No mention was made of royalties on the lease ratification.... it basically said the original lease was valid.