Offer to purchase mineral interest, Howard County

Hi All! I received a phone call from Val Verde Minerals/Royalty Company, LLC last week informing me I inherited Mineral interest in Howard County, TX.
Sec. No. 47, Block 32 Township 1 South, 640 gross acres/ 20 Net The Partial Sec. No. 103, Block 29 NW, 380 gross acres/ 12 Net Title chain states 1/48 ownership. They initially stated they thought the value was $60K -$70K. When they sent me the paperwork they offered $16K and said they confused the property. They gave me until May 1st to accept. I am LOST! I know nothing about this property, what I actually own, if it’s producing, drilled, etc. If it’s even a good deal or how to find out. Everything I have learned so far is from blogs I’ve read on this site. I don’t know who to contact to help me figure it out, landman, lawyer, assessor, who in Howard County??

Any leads to point me in the right direction is much appreciated!

Never let anyone rush you! Big red flag for me! Read through the posts for Howard County. Get your title clear as you have to anyway in order to sell. There are several attorneys listed on the Directory who can advise you in how to do that. There are a lot of mineral companies out there trying to buy at very lowball prices. They know that will make a profit off of you, so slow down and get informed first. Welcome to the forum. Ask tons of questions. You may not want to sell when you know more.

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My (completely non-professional, just another small mineral owner) opinion is to hold off on any offers to sell minerals at this time and do some study. Leasing your minerals could lead to both a bonus payment and royalties in the future if the land is developed. Selling your interest is final.

Most offers that say “hurry up” are trying to bargain hunt. It doesn’t mean they are disreputable, just that they want to make maximum profit… but that is likely at your expense. This is also probably true on leases. Much of the county is being developed and I feel that time is on your side.

Finding the physical location of your land is easier using the GLO GIS, that is the General Land Office Map. ArcGIS Web Application

If you have other family members who also have some interest in this, you may be able to bargain better as a group.

Once you find where it is, switch over to the Texas Railroad Commission Maps. If you can see permits near you, you might check to see what companies are drilling near there, who might be looking to lease. The more middlemen you deal with, the more people will be looking to claim a bit of the action.

You might look at the NARO website for some resources. Read up on leases and what good terms are…

Leads more than firm answers here, but what I’ve learned so far.

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Thank you for the help so far! I really appreciate it! I’ve been pointed in the right direction to research more.

Based on the location information you provided, it appears your minerals are currently producing and you should be getting paid royalty money. However, you need to put in a decent bit of work before pursuing this. And most importantly…

Contact an oil & gas attorney before signing ANY documents

With that said, there is currently a producing well located on Section 47, Block 32, Township 1S called the Morgan Ranch 38-47 Unit 1WB and operated by Hannathon Petroleum. It is only producing from a part of the section, so any money possibly owed to you will depend on what you own (if anything) and where. There is no current production on Section 103, Block 29. These are neighboring sections. I will try to post some screenshots, but not sure if I can manage. I would research what you own and make sure you have clear title before trying to reach out to an oil company.

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My mother got a call from a woman at Permico asking to buy her interest in SE/4, Sec 48, Block 35 T-1-N. My mother didn’t know she owned any mineral rights in Howard Cty. The woman emailed a Stipulation of Interest dated 1966, but we don’t recognize anyone’s name. Called the woman at Permico and she emailed back saying the interest came down thru a name we don’t recognize, and have never gotten a document/copy of a will/etc. saying my father ever had an interest. What should we do here?

What activity is going on at Section 2 Block 32T2N A-1093 and A-1734 if any? Thanks!

Find a land man to do your research.

We had a Stipulation of Ownership filed in a county in south Texas and were told via the court system that it was irrelevant. This was a situation where some guys sold 10 acre tracts to people from Arkansas and Missouri as the Texas Riviera. Then the depression hit and many went bankrupt or just died, with no heirs to be found. My grandfather assembled about 10,000 acres where he got the land and the minerals. Sometime through general warranty deed, sometime by special warranty deed and sometime by quit claim deed.

Ultimately he sold the surface retaining 50% of the minerals.

Years go by and a big life insurance company forecloses on the latest surface owner. At that point someone wanted to lease and drill and this Stipulation of Interest was filed.

Fast forward to the 2000’s and the surface owner, who bought from the insurance company files a trespass to try title case claiming, old owners can not be found, therefore as surface owner he owns those lost minerals.

I dont see why his claim trumps my grandfathers reservation and he bought with that stipulation shown on title but that is not exactly how it worked out.

A similar thing happened to me and my sister. Contact an oil and gas attorney to see if any monies are being held in suspense. They are eager to buy for a reason.

my “go to” is the RRC GIS MAP to locate properties and production; http://wwwgisp.rrc.texas.gov/GISViewer2/ click on the magnifying glass at the top to search click “Surveys” then select Howard then in the “ABSTRACT A-” box type 175 (which is Sec 47, Blk 32, T1S) then click the “Query” button This will jump you to the subject abstract Once you’re there, you can close the search popup Then click the circle i button at the top (information) select “wells” this will allow you to mouse over a given well to obtain additional info

As stated by Armadillo, it looks like there is current production on this abstract. Operator is HANNATHON PETROLEUM, LLC 223 WEST WALL STREET SUITE 800 MIDLAND TX 79701 (432) 687-3700 KUETHE, JUSTIN WILLIAM (MANAGER) REEVES, KENNETH WESTON (MANAGER)

Hope that helps!