I inherited 20 acres which I have paid little attention to. However, I have been getting emails and phone calls to sell the land or the mineral rights but I have held off. Subsequently I allowed a "high resolution 3-D seismic survey to be conducted a year ago. I have heard nothing since. Is there any activity on this chunk of land?
Thank you.
What’s the township range or better yet the abstract number associated with your section 28?
i’m not sure. I see the number A1814 but that’s all I have. Daphne
Get a lawyer to negotiate any lease. Do not sell. The Delaware Basin has multiple layers of petroleum deposits. The United States Geological Service has doubled, and in some places tripled, the estimated amount of Oil In Place within the Delaware Basin portion of the Permian Basin. The recovery rate, that is the amount of oil that can be extracted has increased to 20%. The technology for extraction keeps increasing the recovery rate. The oil produced is easily refined and desired. The large problem is that the infrastructure for supporting the extraction and the transport of the oil and gas and liquids is still being built out.
In some areas, the royalty value of an acre over a lifetime of production of thirty years, based on the current methods and efficiencies, ranges from $400,000 to more. The thickness of oil and gas bearing strata (when added all together) ranges from 1200 feet to over 3200" across the Delaware Basin.
There are recommendations for different lawyers on this site so retain one and treat this as a paying hobby. Good Luck. Lynn Wood
3200 feet, not inches. 3200’
Agree - Do Not Sell! There is oil in Reeves County that rivals Saudi Arabia. AND, ALWAYS use an attorney. Leases are tricky and an attorney can attach and negotiate terms in an Amendment that will benefit you
Do you own only surface or also the minerals? Seismic was paid because you are the surface owner. Anadarko and Resolute both have producing wells on Section 28, Block 2 so you should be receiving royalties.
Thank you for your response. I have a lawyer as of today! This is all so involved and complicated for me to sort.
Daphne
Thank you for your response. I am working on searching the mineral rights or rather the lawyer is.
Daphne
I know this sounds crazy, but I do not want to sell as I have a sentimental attachment to the chunk of land as it was one of my dad’s last purchases.
Daphne
I agree with you. My property is all I have to connect me to my grandfather and my mother.
No mineral rights came with the land in Secion 28 if your family purchased a 20 acre lot.
Unfortunately, I don’t think I own the mineral rights. However, if the surface of the land is being used for roads or pads or equipment to dig vertically or horizontally, are there no land rights?
Daphne
You can not prevent use of the surface for development of minerals under your tract. But you must be paid damages for the well pad. You should have easements for roads, pipelines and electric lines. Do not agree to permanent easements, but have them end with cessation of use. Ask for payments every 10 years or a triple payment up-front. You own the water and should be paid per barrel. Get legal advice on the any easement agreement. Look at the University Lands Rate and Damage schedule for an idea of compensation.
You say you own 20 surface acres, but not minerals. Your area is prime, several lateral wells are producing in your section … Resolute recently acquired by Cimarex Energy, Anadarko being acquired by Occidental.
I’m surprised you haven’t been contacted frequently to sell easements for powerlines, pipelines, roads, surface infrastructure … perhaps because I see only one gathering pipeline along east border of your section, maybe that pipe bypassed you. Glad you hired a lawyer, easements have so many variables, lawyers know the market rates & myriad easement variables and contractual terms. If approached to negotiate sale of easement, ideally you can get to know your neighbors and possibly negotiate the same terms through their lawyer or yours.
Thank you for your informative reply. I do have an easement for a pipeline on my property and I was paid for it.The lawyer doesn’t seem to think my 20 acres is worth much because only have land rights. Told me I may get something for a salt water well. According to the RR GIS map, there are wells on my property…if I am looking at the right map! I am patient but I want to keep on top of this. I don’t know what else I should do at this point. I am going to put out a post to neighbors.
Daphne
Dear Drew, I have “lost” once of your responses…the one with all the information, of course. But what can you tell me about what can you tell me about what’s going on, if anything on block 2 sec 28? I have gotten two offers to sell, again, in the last 10 days.
Daphne
I’m not sure how to message you on this forum. I just sent you my phone number on facebook if you would like to talk about the area.