We recently inherited some mineral rights in Midland, TX (that are currently paying royalties). We would like to get help (1) with a fair valuation of these mineral rights, (2) a professional to help us understand the terms of the lease my relative previously signed with Pioneer and whether/when this lease could be altered, and (3) information about the best way to sell rights should we consider that route. Could anyone please direct me to how to best find out this information? We are not sure where to begin. Internet searches are hard to interpret because it looks like a bunch of ads or people wanting to make an offer.
Hi JLC and welcome to The Forum!
Midland County is a very busy place these days. It and about another dozen or more Counties are in The Permian and the Delaware Basins (geological terms) and there are more Drilling Rigs in that area now than anywhere else in the world. Your mineral interests could be quite valuable.
There are literally hundreds of companies and individuals that are trying to buy minerals and royalties in West Texas and Southeastern New Mexico. You will be receiving offers for years to come.
What any of us will need to help you is a copy of your lease to review and copies of the last 3 check stubs you have received in order to give you a ballpark figure for you to begin with.
To answer one of your questions, it is highly doubtful that you will be able to alter or amend your relative's lease.
Yes, most of the websites you look at want you to submit your information so they can make an offer. A website like this one or perhaps NARO's website (National Association of Royalty Owners) are the type you will get the most free advice from.
Hope this helps -
Charles Emery Tooke III
Re: signing the lease.
Unfortunately, you have put "the cart before the horse."
I'm not sure what you mean. I didn't sign the lease. I inherited rights with an already signed lease. I'm now trying to figure out how to understand it all.
We need a copy of the lease to show you. It will probably not be long - an average printed form is only 10 or 11 paragraphs.
The companies paying your family royalties should have a copy of your lease if you can not find it in your records or in the courthouse.
Tell us what your legal description is and the name(s) of who signed the lease, if you know and we'll see if we can download a copy.
The names of the Well(s) off of your check stubs would help a great deal.
When your predecessor in title signed the lease, you are bound by the terms of the lease. Here is an excerpt from the most prolific lease form in the State of Texas, which is likely similar or exactly what is on the lease form that was executed by your devisor:
"7. The rights of either party hereunder may be assigned in whole or in part, and the provisions hereof shall extend to their heirs, successors and assigns; but no change or division in ownership of the land, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee; ....."
If you have not read this blog post, it might be of some help to you: