Hello, all!
We just inherited about 7 small oil/mineral tracts in McClain (and more in other) County. We Have NO idea how to get started with getting them leased (I think they had slipped into unclaimed property because the estate has had a 5 year probate). I have been reading as much as I can on this forum to try to understand pricing, etc, but it is still completely a foreign language right now!
I had considered just selling them because I did not want to work so hard to figure it out, but after extensive reading, I have realized that I should keep them. My biggest question is, can I approach a company regarding leasing the property or do I have to wait until someone contacts us? If I can approach a company, are there some good ones that are recommended? It is clear that there are very knowledgeable people in this group, so I am hoping for help. I am sorry to ask such a basic question, but I could not find a specific answer to it when I looked through the discussions.
Kierlee
Never say "We really need some money now." That just stimulates a bunch of low-ball offers. There are bottom feeders in this business.
You are doing the right thing by educating yourself, particularly regarding values. First thing is to ascertain whether your interests are subject to existing leases. If your interests are not currently under lease, you will have choices between higher bonus and lower royalty, and vice versa. In the long-run the higher royalty is best if it gets drilled, higher bonus if it doesn't (you get to lease it again most of the time).
Capture all of the records from your ancestor that you can get your hands on. Separate everything by Section, Township, and Range to start with. Make a file for each Section.
Kierlee,
You could consider selling a portion of your minerals and keeping a percentage for yourself.
Clint Liles
Good advice given by Frank and Clint. I'm sure others will chime in. Location - Location - Location is very important with minerals. And "small" can be huge if location, is right. As soon as you post the legal descriptions, we can help in your learning about the potential value. You said everything is completely foreign to your right now, so a publication of the Oklahoma Corporation Commission "Basic Information for the Oklahoma Royalty Owner" might be helpful. The link is http://www.occeweb.com/og/Basic%20Information%20417.pdf Since you mention that some assets may have gone to unclaimed property, visit the State Treasurers website to search for unclaimed property, and be sure to include all names and variations in your search. The OCC website also has an Unlocated Mineral Owners search function. On their home page look under the Conducting Business button and go down to the very bottom. More detailed instruction for these search resources are in the Basic Information book, which is free to download - I have printed a copy for my reference. Welcome to the Forum.
Thank you for responding so quickly! The locations are:
Sec 14-R6N-R3W
23-t6n-r3w
26-t6n-r3w
3-t9n-r3w
32-t7n-r3w
35-t6n-r3w
Are these any where there is drilling going on?
3-t9n-r3w- Depending upon your exact description, you may have royalties in suspense or at the OK treasurer's office. Andrews #1 well produced until 2015. Eagle exploration has permitted a new horizontal well to spud in section 22 and go north into 3. Calvert 0603 22-1HW.
14-R6N-R3W-Depending upon your exact description, you may have royalties in suspense or at the OK treasurer's office. McCann #1 well produced until at least Jan 2017.
23-t6n-r3w-Depending upon your exact description, you may have royalties in suspense or at the OK treasurer's office. Christian E #1-23 well produced until at least Jan 2017.
26-t6n-r3w-Depending upon your exact description, you may have royalties in suspense or at the OK treasurer's office. Buck #1 well produced until at least Feb 2017. Christian #26-1 produced until March 2015
32-t7n-r3w-Depending upon your exact description, you may have royalties in suspense or at the OK treasurer's office. Cobb 1-32 well produced until at least Oct 2016. G. Bingaman B #1 produced until Dec 2016
35-t6n-r3w-only really old wells here.
You should have a more complete description in you probate papers. These are old vertical wells, so if you have acreage in the NW4, but the well is in the SE4 you will not get paid on it. However, if you have no well, then you may be open for some nice leasing in these areas.
Find out everything you can before selling or leasing You need to know that value of your property and then you may want to hang onto it instead.
Read over the last six months of discussion on the forum to get a feel for what is going on. Contact a few of us as friends and ask tons of questions. Do not get rushed into selling. If you went through a formal probate, get all the documents you can. Also, you need to let the county clerk know your name, address and the exact descriptions of your properties so the lawyers and land men can find you. We are here to help.