I’ve been trying to understand my families mineral rights and royalties. I recently went through the documents my family had on the wells in Custer Co, OK, Section 24, 12n, 15w. There are high producing wells on the section but we get about $30 per month royalties on our 26nma. They were drilled and have been producing since the 1980s. I found a Corporate Commission order from 1986 that seems to say that royalties are shared throughout the formation which includes some 40 other sections that are mostly in Caddo County with a few in Washita and Custer.
This is all so new to me and we’re preparing to sell these rights. How does this affect their value? One of the documents has a long list of wells. Should we be getting royalties from wells in the other sections in addition to the few in ours? Do these wells preclude other drilling? Last year the state of Oklahoma leased 80 to Clear Creek Resources for a bonus of $1500 per acre and a 3/16 royalties that said “except the Red Fork and Atoka formations”. Do we get royalties if they drill in that part of the section?
We hadn’t thought these rights were worth much, given the small royalties, but as I’ve done more research it just gets more complicated.
Thanks for any insight.