I was just contacted by an oil company telling me they wanted to buy our mineral rights we
didn't know we even owned. How do I research this to see if we really do???
Lori:
I would first get the description of these minerals (Township/Range/Section). Second, go to the County Clerks office in the county where the minerals are located as they have mineral records for the county. You can verify the party on record for these minerals. My advice is not to sell but rather lease the minerals. Do some research and learn who is leasing minerals in that area and then educate on the terms of a lease. You might want to refer to some posts on this forum addressing leasing terms. Good luck!!
Thanks for the advice. I found out they are in San Augustine County, and hope to find out more, but everyone I talk to on the phone sends me in circles. I live in Wisconsin - GO PACKERS - so it would be hard to go to the county clerks, but I will call them and see where I get.
Thanks Again.
charles s mallory said:
Lori:
I would first get the description of these minerals (Township/Range/Section). Second, go to the County Clerks office in the county where the minerals are located as they have mineral records for the county. You can verify the party on record for these minerals. My advice is not to sell but rather lease the minerals. Do some research and learn who is leasing minerals in that area and then educate on the terms of a lease. You might want to refer to some posts on this forum addressing leasing terms. Good luck!!
Lori:
I didn't realize you were that far away from the County Courthouse. I'm in a similiar situation as I live in Texas and have minerals in Montana and North Dakota. There is an individual on this forum who is very knowledgeable in the oil business and lives in an area to the South of San Augustine, County. His name is Buddy Cotten and his email address is on his profile located in this forum. He possibly knows someone in the San Augustine area who could assist you in this matter. The County Courthouse will not assist you in record research. Good luck in your findings and GO PACKERS!
That’s just the risk they take. They’re not trying to to help anyone but themselves. $$$$
Mineral Joe said:
If you don't want to sell to the people who found your unknown minerals and tracked you down all at their expense for your benefit then why even research it? One person here said don't sell, now that's gratitude for you, find someones missing money and you get no reward. Sell the company some for cheap for the found treasure that they found for you and they will give you the research you want for some unknown reason. Reward those who give unto you, don't shoot them in the foot, that's pretty low. I always see these people who found someones wallet full of money and there are some that won't even say thanks yet alone reward the person that gave them what was gone forever without them, that's something to be proud of. I come across tons of mineral owners that don't have a clue and I wouldn't waist my time to let them know because most have the same attitude, they'll probably never know.
Lori, don't let Mineral Joe bully you. Oil companies are in business to make money and part of their business practice is determining mineral ownership. They try to buy minerals whenever they think it is a really good deal for them. A man in my hometown was approached by the oil company to sell his minerals and guess what? The well they drilled was the best one in the community! The company, no doubt, had the seismic information on that land and knew very well that it had great potential or they wouldn't have made the offer in the first place. He deeply regretted his decision to sell his minerals for a relatively small sum, compared to the million he would have earned from royalties.
Mineral Joe's analogy of finding a billfold of money and not giving a reward is not even close to the same thing as selling someone some of your minerals because they told you about them. You owe this company nothing but maybe the consideration of the first right to lease it from you if you can work something out mutually agreeable. I surely wouldn't sell any of my minerals, ever.
Mineral Joe said:
I see, yes we should all work for free to better mankind and not for profit but let me see, isn't that everyone's motive to benefit themselves in some way. That's an ungrateful way you see things.
Some oil company likely had interest in buying / leaseing the property to begin with, in which case they had to determine who owned it anyway. Lori doesn’t say she was contacted by an independent landman, who stumbled upon her minerals while searching for something else. There could be a couple of wells on the property that are a decade old and have pumped a million barrels or more. If that were the case they would be paying Lori with a tiny fraction of her own money, that they have been holding in suspense, collecting interest off of the money for years. Search for the thread [ Interest on Funds Held in Suspense for 20 Years? ]. The oil co. was holding 1.6 million for those people in suspense and got them to sign a lease for 18%. The oil co paid out $290k and made a cool $1.3 million EXTRA just because the mineral owners didn’t know they were due the money anyway. If I found someones wallet with $1000 in it I would just return it; I wouldn’t demand or feel entitled to a lions share 82% reward. RWK
Okay, Okay, put down the boxing gloves and let me explain a little more. Until 6 months ago, I knew nothing about Mineral Rights in Texas. They actually belong to my mother-in-law, and I am just trying to help her out as she is 80 and I don't want to see her getting ripped off. There is nothing in it for me. She was told 6 months ago that she had mineral rights to two different parcels. Some man from some oil company just called her up. She signed some papers rather quickly without advice, and leased her rights out. She got a check for both parcels. She cannot remember if she got a copy of the lease, or who it is with, and cannot find it so I am researching this also. I have now tracked down the two parcels on the RRC website. One chunk has a well adjacent to it, but nothing on her tract. The other one however, got a permit issued in December, and they are drilling a horizontal well into her parcel.
The parcel she wanted to sell is the first one(with no well), and she was selling it because she needs the money to fix up her house. The offer seemed good to her, and originally they told her she owned the whole parcel of 116 A and she would get the full sale price. That was last September, now they say she only owns 26% and so she gets less money than originally told. So now she is worried, maybe they are lying to her. Hence, I step in and begin this research, as a prudent person should. If I found out I owned land, I would certainly find out the value before I just sold it to the first person that came along offering whatever price they wanted.
So now my question is....If they are drilling a well on one tract, how long until the well is really built, and when do you find out if there is oil there or not, and how much oil????
Also, on the previous chunk, the one she still wants to sell, how do you find the value???
Can you sell it if she leased it????
How do we get a copy of the lease???
What is the likelyhood that she owns more parcels????
How do you find out????
Thanks Everyone for their input.
Lori
By the way, I would return the wallet, with all the money still in it, and not expect anything in return. I lost my purse one time in Minneapolis, MN. and a kind hearted lady mailed it back to me with all the items still in it. She did not let me repay her kindness as she put no return address on it, and I forgot to get her phone number when she called me.(Many years before caller id) I will and do pay it forward when I have the opportunity.
Lori:
You can contact the Railroad Commission of Texas district office in Kilgore, Texas in regards to the current status of the well being drilled. The phone number is (903) 984-3026. San Augustine County is in the Kilgore Distict. I don't know how much information you can provide about this well (lease name, etc.) but gather all the information you can in order that the RRC can locate the proper file. In regards to the timeline on drilling and completing the well, you can find out when the well was spudded and it usually takes about 60 days to complete barring no unforseen problems. In regards to selling minerals that are currently leased, you would have to obtain legal assistance (possibly an oil and gas attorney), to handle the process but it can be done unless terms of the lease addresses this matter. A copy of the lease should be on file at the County Clerks office in San Augustine County and again you will have to contact someone to do this research unless you make the trip to Texas and do it yourself. By doing this research or having it done, you can learn if she has additional minerals in the area. Finally, you will probably be ahead by getting legal assistance in this research process.
Lori Lyons said:
Okay, Okay, put down the boxing gloves and let me explain a little more. Until 6 months ago, I knew nothing about Mineral Rights in Texas. They actually belong to my mother-in-law, and I am just trying to help her out as she is 80 and I don't want to see her getting ripped off. There is nothing in it for me. She was told 6 months ago that she had mineral rights to two different parcels. Some man from some oil company just called her up. She signed some papers rather quickly without advice, and leased her rights out. She got a check for both parcels. She cannot remember if she got a copy of the lease, or who it is with, and cannot find it so I am researching this also. I have now tracked down the two parcels on the RRC website. One chunk has a well adjacent to it, but nothing on her tract. The other one however, got a permit issued in December, and they are drilling a horizontal well into her parcel.
The parcel she wanted to sell is the first one(with no well), and she was selling it because she needs the money to fix up her house. The offer seemed good to her, and originally they told her she owned the whole parcel of 116 A and she would get the full sale price. That was last September, now they say she only owns 26% and so she gets less money than originally told. So now she is worried, maybe they are lying to her. Hence, I step in and begin this research, as a prudent person should. If I found out I owned land, I would certainly find out the value before I just sold it to the first person that came along offering whatever price they wanted.
So now my question is....If they are drilling a well on one tract, how long until the well is really built, and when do you find out if there is oil there or not, and how much oil????
Also, on the previous chunk, the one she still wants to sell, how do you find the value???
Can you sell it if she leased it????
How do we get a copy of the lease???
What is the likelyhood that she owns more parcels????How do you find out????
Thanks Everyone for their input.
Lori
By the way, I would return the wallet, with all the money still in it, and not expect anything in return. I lost my purse one time in Minneapolis, MN. and a kind hearted lady mailed it back to me with all the items still in it. She did not let me repay her kindness as she put no return address on it, and I forgot to get her phone number when she called me.(Many years before caller id) I will and do pay it forward when I have the opportunity.
Lori, you could contact the operator of the well, but I think it would be quicker and easier to get a copy of the lease from the county records . The state may have an electronic records system that you could pay a fee [ should take credit cards ] to use and download a copy of the lease. The subscription would probably be cheaper than hiring someone to obtain the lease for you. Just because a well was permitted doesn't mean they will drill within the permitted time. Permits are renewable and fairly cheap. The parcel that mom-in-law wants to sell is going to bring less because the lease already conveyed the rights to a large part of the production [ 75 to 84% ]. This value will come back if no wells are drilled and the lease expires but, if I were interested in buying the parcel, I'd have to assume that it would be drilled. It sounds to me like you need someone to do title search. To be sure of what you own and how much. I don't think it would be wasted money, as it might be required to receive royalty's from the future well. I can't tell you how much it will cost because each case will be different. I hate to patch things around the house, but if the house isn't falling down around mom-in-laws ears, it might be best to patch the worst part and wait for the well. I hope someone else has some better ideas for you, RWK Ps. I started this post about 2 hours before I posted it. I'm not deleting it only because there might be a usable shred of information in it. RWK
I will try contacting the RCC and the county clerk on Monday. The oil company that wants to buy the property already put it in writing, so am I to assume that they know about the lease?
I will also contact the company that helped get the lease. I think that is Wilson Oil & Gas Co.
Has anyone heard of them?? Seems like a one man company to me.
Maybe one of these avenues will turn up more information.
I am also curious to know if they find oil on the one property, how long until a person would actually see some $$$?
I also will check back in with my mother-in-law to see if she found any other information in her files. It is also difficult to discuss all this on the phone with her, as she doesn't remember things very well, and is confused by it all. She is also in CA and I won't see her in person and be able to look at her files until March.
Anyway thanks again for all the information, if anyone has more to add, let me know.....I like to gain all the information I can. I will post more as I learn more on Monday and next week.
I would like further information on how you search for more mineral rights under her name (actually they were under her mothers, and great grandmothers names, but she is the only living sibling left)
It might be a fun adventure to go there and look for more details, but I have no idea of what or how to do it.
Thanks,
Lori
Okay,
I need to get a copy of the lease, because my mother-in-law doesn't have it.
Do I just call the company that originally contacted her to lease the land out, or
is there another way to get a copy of the lease???
I did find that there is a well being drilled on one chunk of her mineral rights.
The RCC listed it as oil, but when I found the permit, it is actually gas.
How long until they have to file some info. about if they found gas or not, and how much gas?
What is a good amount to find?
Thanks,
Lori
Lori Lyons said:
I will try contacting the RCC and the county clerk on Monday. The oil company that wants to buy the property already put it in writing, so am I to assume that they know about the lease?
I will also contact the company that helped get the lease. I think that is Wilson Oil & Gas Co.
Has anyone heard of them?? Seems like a one man company to me.
Maybe one of these avenues will turn up more information.
I am also curious to know if they find oil on the one property, how long until a person would actually see some $$$?
I also will check back in with my mother-in-law to see if she found any other information in her files. It is also difficult to discuss all this on the phone with her, as she doesn't remember things very well, and is confused by it all. She is also in CA and I won't see her in person and be able to look at her files until March.
Anyway thanks again for all the information, if anyone has more to add, let me know.....I like to gain all the information I can. I will post more as I learn more on Monday and next week.
I would like further information on how you search for more mineral rights under her name (actually they were under her mothers, and great grandmothers names, but she is the only living sibling left)
It might be a fun adventure to go there and look for more details, but I have no idea of what or how to do it.
Thanks,
Lori
Lori -
Normally leases are filed of record in the county courthouse to protect all the parties. They don't have to but usually do it, and the county will either research it for you for a fee or be able to recommend a research service in the county seat. You should be able to provide the mineral owner name and preferably the abstract name and number - ie "John Smith Survey A-200". Whoever leased the minerals may have transferred them to the company operating the well. The company that took the lease should be happy to provide a copy.
Almost all wells being drilled in this area are horizontal and they cross lease lines. So the company leases all the tracts under which the horizontal well will travel and then "pools" all those individual tracts into a "pooled unit". All of the owners in the individual tracts are diluted by the size of the whole unit - if you had 40 acres that went into a 320 unit, then you own 1/8 of whatever you leased for. The pooled unit is filed with the TXRRC and is part of the permit which is public record.
After drilling is completed, it may take months before the well is tested and any completion forms are filed. Then it may be many more months before gas pipelines are built to the well and sales begin. Then it is 1 to 2 months before mineral owners receive checks. In this area wells can go either way on being classified as oil or gas. Usually a gas well requires more acreage to get permitted but that depends on the field rules. Wtinin a year you will probably have a pretty good idea of the size of the well. If you know the API number of the well that you believe is being drilled I, or some lease or company name, I can do a quick check for you.
I've been in this business for 35 years and very rarely find oil and gas companies intent upon cheating people. And those that do are typically not legitimate companies but simply promoters and are generally known as such. The rest are anxious to make a good deal because they know the significant risks in the business, but are not what some of this discussion has implied.
Gary
Rockwall, TX