Researching for a friend - newly inherited mineral rights

There are mineral rights that have been passed down through the family, so ownership of NMA is quite small. However, little to nothing is known about these. There were a few counties in Texas which had been leased, but the royalties have dwindled. Now the family has been approached for a new lease in Gaines county. And, this has led to a need to learn quickly and find as much information as possible about the mineral rights that have been inherited.

1.) It is my understanding that research for mineral rights ownership can be conducted at the Railroad Commission of Texas website. However, this seems quite daunting and perhaps complex. Any advice? 2.) Would like to understand not only the ownership, but also the amount of production from the wells on these sites. Where is this information obtained? 3.) Very importantly need to understand this information specific to the question(s) at hand with the new lease opportunity. The tract of land is in Gaines county and the information on this is available. 4.) What is meant by a “paid-up oil and gas lease”? 5.) What would be fair market value for a royalty and upfront payment for a lease agreement in Gaines county? 6.) Who has had dealings with or knows of Prestige Exploration? There is little information that has been found through routine checks.

In response to your questions:

  1. No, you cannot effectively research mineral ownership using the TXRRC site.
  2. This is what you would use the RRC site for. There are instructions on the site about how to access the various information you may be looking for.
  3. Unsure of your question - too vague
  4. It means your signing bonus is paid up-front, not in annual installments.
  5. That depends on many different factors - the geology of your specific location, how many people are competing to get your lease, whether you’re dealing with an operator or lease flipper, etc, etc.
  6. I can’t give any input on that specific company

Best of luck

1 Like

LongtableHoldingsLLC, Do you have any information on what Oxy is doing in Gaines county? The company leased up a lot of land which has not had any production.

  1. I have been able to research ownership using Texasfile.com or courthousedirect.com. You will not find ownership on the RRC website.
  2. you can see what production has been in the area of and around through the GIS Viewer from the RRC website. Drop down for county and a way to find survey, abstract, section etc. then clicking on a well allows for volumes.
1 Like

The tract of land is Section 1, Block C33, PSL Survey, Gaines County, TX, if that is helpful to my original questions

There is a thread in this forum which mentions a lease offer and a dollar amount from Prestige.

1 Like

iFriend, previous responders have given you a lot of good information. You might now try posting that specific location information for the tract you are inquiring about and your questions about Prestige Exploration in the section of this forum for Gaines County. You can do that by going to the top of this page, clicking Counties, then scroll down to select Texas, and then scroll to Gaines County. I don’t know how active that county group is but it will give you a chance to get response from someone directly involved in that area.

Only thing I’d add to what was posted above regards the meaning of “paid-up lease”. The bonus or upfront payment is typically made at one time, the term paid-up refers to what are called delay rental payments. In times past most leases included provision for a small annual payment to be made during the primary lease term to keep the lease active. Paid up leases, which are the common practice now, state that the initial bonus payment also includes or is an upfront payment of the annual rentals so no additional payment is required during the primary term of the lease.

This topic was automatically closed after 90 days. New replies are no longer allowed.