Good advice here. Go slow and don’t sign any letter of intent, Mineral Purchase Agreement or anything else until you get input from someone knowlegable about these facts. These agreements are loaded with traps, escape clauses and other tricks to Buyers benefit. Some even attach something that looks like a check to their offer. Don’t ever sign and deposit that thing! The advice about suspended revenues from months and years ago is golden. That is your money but these Agreements will TAKE IT AWAY! Another thing is that you could unwittingly give Buyer your Power of Attorney to execute documents on your behalf after closing. How nasty is that? Just be careful.
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Fletcher_Bishop. Give me some well names, operators, and under who’s name is the property is owned/held, Your name, your grandmothers name, your uncles name, etc.
Also, did Felix tell you what your percentage ownership was under the wells? They may have referenced with “net revenue interest”, “percentage interest”, “net sharing interest”. We can provide you price paid for product, total volumes of oil and gas reported, etc. to give you a very close range of value…money being held in suspense. We will not be doing this for free in the future, but it appears you need some numbers and we are new to this forum, so this one is on us.
Also, I am not sure about the receivership dialog. The oil companies only take a “receivership” oil and gas lease when they cannot find a mineral owner. (mineral owner being a person or entity who has executive rights…the right to execute oil and gas lease…which is a severable bundle of rights under mineral ownership) . In today’s world, right or wrong, if you have a royalty vs a mineral ownership (royalty owners normally do not have executive rights) then the oil companies often go looking for you only after the well is near completion or completed. A receivership oil and gas lease is awarded to an oil and gas company when the company petitions the court to award an oil and gas lease to the exploration company after the company gives testimony to the court that they have made a diligent effort to find you and or the heirs…you are a mineral owner with executive rights…and because the oil company could not find you, (and they have to publish in the paper and provided notice of the hearing) the courts under a finding of fact issue a receivership oil and gas lease to the oil company.
If your interest is in receivership, and not suspense, the oil company is required to pay all monies into the registry of the court for all production on a monthly basis under the terms of the oil and gas lease awarded by the court to the oil company. Check with the District Court Clerk and inquire as to any money being held in your name or your grandmothers name, etc. Therein may be your answer. Send me some name of wells and any other information you have in your wheelhouse and I will do a bit of research to see what money might be sitting in “suspense” and possibly receivership that is owed to you. Cheers!!
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Thanks GKP. We have since my post been informed of the value under the receiver and the percentage ownership of the royalties. We will be receiving significantly more than what Patch has offered. In addition, Felix will now be sending ongoing royalties directly to us. We are aware of 8 additional blocks/sections in both Winkler and Pacos. After securing our rights in Block 27 Section 19 need to take a breath before pursuing the remaining rights!
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Excellent. All of the unexpected surprises. Let us know if you need any explanations or thoughts in the future.
I have a similar offer for rights my Grandfather bought and also was told our interests are in receivership. is there a way to know how much money is in the receivership before spending money on lawyers? If the County Clerk or someone else has a record of the amount, we can make a decision about what we are willing to spend to get it out. From reading other posts with the same location as ours, I am reading that we are in a “good area”. Thank you -
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Now is not the time to be selling minerals unless you absolutely need to. Offers are down in the basement now due to oil being at $20. Oil prices are TEMPORARY, mineral sales are PERMANENT.
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I can’t tell you how to figure out the value but I can tell you what my family has done. We gathered all the wills and related documentation to prove we are heirs to the mineral rights. Hired a lawyer and had a hearing date with Judge Wolf (the receiver) until Texas closed the courts so now waiting to reschedule. Our lawyer through discussions with the Judge and Drilling company determined our family’s share is around $60K. We will spend around $3K in attorney fees. I believe we saved a bunch of money by doing all the leg work ourselves.
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Thank you Fletcher_Bishop. We will look for a way to find out how much the receiver has before hiring a lawyer, probably after things open up again.
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