My father in law is the owner of what we think are mineral rights that were given to him by his father. It was originally 20 acres that has now been divided between my father in law, his siblings, and cousins. He receives a check periodically from Kaiser Francis Oil. We originally thought he owned 1acre of land, but after some research we’re pretty sure it’s mineral rights. The well is located at 17 8N 8W in Grady County. My father in law and several of his relatives have recently been receiving calls from someone wanted to purchase their portion. They have been offered $1,200 an acre. When calling the county government offices, we were told to get in touch with an oil and gas attorney in order to get any information. We live in Georgia and this is all new to us. Is this a decent offer for mineral rights and who is a good attorney to contact? Any help is appreciated!
It’s on the western gassier side, but there are permits in the vicinity. The offer is a mineral deed or lease? If leasing, what are the terms? If it’s a mineral deed, probably worth holding on to, certainly for that amount.
The heirs need to contact the operator’s Division Order analyst and ask for a copy of the paragraph of the title opinion that tells how many net mineral acres each of them have. Each of the heirs may have a different set of acres depending upon the probate wording. You do not need an attorney for that. What is the name of the well and I can look up the operator. It may not be Kaiser Francis any more. Lots of selling going on. Is it the Billy Hill?
Any time that I get offers, I try to find out what the buying company knows that I need to know. First offers are usually lowball just to see if someone will bite. There is extensive horizontal drilling with multiple horizontal wells just a few miles to the east of you, so the play may be moving toward you. You need to get more information before making a decision. If all the relatives stick together, they can probably do better on the offer. Also, selling might not be what you want to do.
Welcome to the forum.
An offer to purchase minerals at $1200 in Grady County sounds like a lowball offer. But if it is part of an offer to lease, then the terms of the lease including the royalty amounts is very important to review.
Calling Grady County will probably not result in great information as clerks are responsible for filing deeds, leases,etc., But they are not to provide legal opinions, though sometimes they do.
You can research land records here: Grady County | OKCountyRecords.com | County Clerk Public Land Records for Oklahoma
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Yes the well is Billy Hill 2-17. I guess what I’m asking too is where should we even start? Will we need to have any other information when we call the operator other than his name? We don’t have any paperwork on the land except for the check stubs he receives from the oil company periodically. He never gets any other other type of mail regarding the land and has never talked with anyone regarding the land. We are just assuming it’s mineral rights since recently discovering it is not surface land that he owns.
Find the check stub for the Billy Hill 2-17. You will need the name of the person the check is being made out to and the owner number. The operator is listed as Kaiser-Francis Oil Company on the OTC tax site. You need to contact the Division Order department. If he is able to ask, that is best unless someone else is the Power of Attorney. They like to talk to the person who actually owns the minerals. Here is the website. https://www.kfoc.net/OwnerRelations. Their phone number is listed in the lower right. You want the Division Order analyst that handles that particular section. Tell them that you are helping your dad get his records in order and you need a copy of the lease that goes with that owner number. Ask for a copy of the paragraph of the title opinion that shows how many net acres he owns. If they will not give you the paragraph, then ask nicely for the exact description of the acreage and the net acres and royalty they are crediting him. If you are very nice, they can be very helpful.
Hello. I am also one of the owners to that Byrd property and received the offer to purchase. I appreciate the advice and direction for finding out more about the 17 8N 8W property.
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