Royalty Deed

General Mineral Rights Discussion
1

A friend recently discovered a Royalty Deed which belong to his grandmother, who passed away in 1969, since 1956.

It is for 20/324.5 interest in Section 14 Block 32.

We have several questions -

What is it worth?

Is there any activity on the land?

How do we know if there's any royalty we are due?

Any help in understanding would be helpful.

2

Good morning Mark. What state and county?

Clint Liles

3

Sorry, new to site. Howard County, Texas

4

Mark...another question...

Would that be Block 32 T1N or 32 T2N?

Clint Liles

5

Township One North

6

Mark,

There are 4 producing vertical oil/gas wells in Section 14. Production is coming from the Spraberry Formation. Athlon Holdings is the Operator. I also see 1 dry hole was drilled in the past. Next door to the South is a producing horizontal well(API 227-38640). Link to production data on well 38640:

http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab...

Also to the South SM energy has 2 approved permits for horizontal wells 227-39017 and 39018/approved in June and July 2017.

GIS Map of Howard County Section 14/Block 32 T1N and surrounding area:

8fe209fad33b3f8a445afe0d6887a34246172910.JPG818×568 85.7 KB

CLICK ON MAP TO ENLARGE

Clint Liles

7

Mark- Also read the Royalty Deed carefully to make sure it is perpetual. Some deeds are only for specific terms or are tied to an existing lease, and expire when the term runs out or the lease expires.

8

Look at Texas unclaimed funds to see if any royalties have been sent in under grandmother's name and also ask the operator about title and any funds in suspense. Check the on-line deed records to see if grandmother assigned the interest to anyone else.

9

Thanks it is perpetual.

10

I've checked the unclaimed and nothing is listed.

Also checked and it has not been assigned or transferred.

Any idea of what the value might be?