Oil & gas discussion group for those interested in Tarrant County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
I'm posting on behalf of my Mother who is currently looking to sell her home in Tarrant Co. She currently (apparently) is under lease with Chesapeake as they have sent her something called a "division order" to sign and return. We need help confirming these minerals are hers (without doubt) before she sells the home; so we can RIGHTFULLY exclude them from the sale of the property.
Is this something Cheasapeake would have already confirmed; or did they just approach her as the "homeowner"???
Would Chesapeake be able to tell us if she owned 100%; or just a small percentage of the rights? Meaning perhaps parts were held back by previous homeowners so she may only have 15% or 60%???
jk84mc, your mom can do a blanket exclusion for ANY minerals she may own under the property in the sale and I would do this so the sale could go forward. Then you could at your leisure investigate the division order. I will say that the operator usually does their homework and I have had a hard time convincing some of them that I am the owner and none of them have ever tried to pay me for anything I did not own. I'm saying the likelyhood that your mom is the owner of at least some of the minerals is 99%. Chesapeake could help you with those ownweship percentage questions, unfortunately it's difficult to contact the operator get connected to the right person and keep their attention long enough to find out what you want to know. Be patient, be creative. I wasn't getting any asnwers from an operator once until I finally tried the lost property department and they were very helpful. Good luck!
Thanks r w for your quick response and recommendation of the blanket exclusion. My brothers and sisters and I just needed to be sure we weren't offering something in the house sale that wasn't hers to offer. We just found out about this "Division Order" which she had been mailed (back in Oct) and she can't find her copy of the O&G Lease. I just know it will be imparative for us to confirm her rights before she is paid very many more royalties on her lease. Not to say this is the case; but for all we knew the O&G Co just approached her with a "story" and got her to enter the lease with them; just so they could drill where they wanted. Just don't need any ghosts sneaking up on her later with proof against her ownership and winding up with a lawsuit or something.
If the O/G company sent a division order it would have done a full title search and you can be assured that you own what they say you own.
In the sale just keep any and all minerals this should cover you .
Thanks for your response Mickie.
For everyone in these discussions....
Do NOT do business with Ferrell Oil out of Oklahoma City. We had an offer to purchase minerals in Grady County, 11-03-06. Jim Meyer with Ferrell said he represents a college endowment fund and wanted to purchase our property for the school. We negotiated a purchase contract with them and was asked to fax it to them with our signature so they could show it to the school to get funding to close the purchase. He said it would take 30 days to do a title opinion. They, however, never did sign the contract and return it to us.
As it turns out, they are a broker and do not purchase property for their clientele rather than look for a buyer once you agree to sell to Ferrell Oil. They will want to issue you a 30 day bank draft and if they can't find a buyer for your property in those 30 days, they just don't pay the draft. We negotiated to be paid by ACH/Wire Transfer.
We will find another buyer but DO NOT do business with Ferrell Oil out of Oklahoma City unless you want to sit around, be lied to and then never get the deal closed.
Also be wary of them doing business under another name.
Anyone in Tarrant County being contacted by oil companies wanting to lease your Minerals for Oil drilling. I was told from a solid source that Oil Leasing is coming soon to Tarrant county looking to drill in the Barnett Shale for Oil.
Dear Mrs. Wood, Don't sell your minerals period, Never, that was my grand dad's mantra. You can see the land, as long as it's not PSL land, that is Public School Land, where you have to control the surface in order to received 1/2 the minerals. Each time you lease, you need to make sure and talk with Oil and Gas attorney, so that make sure you get area 100 feet below hole back, for next leasing boom. I hear Oil Companies will be coming to Fort Worth looking to lease our land for oIl drilling next, they expect giant returns from the Barnett shale. So that should make Gas Drilling look like chicken feed.
I have minerals in Grady County Oklahoma, aka SCOOP and Springer Shale country.
I live in Bedford and am curious about an article
"the city of Mansfield has permitted Edge Resources to drill up to 36 gas wells at that location since 2008, even though currently there are only two in operation"
Er, how does one drill 36 wells in one section
It looks like they are drilling on that particular section using Horizontal, Vertical and Directional. The horizontals and verticals on the section and the directional wells to access off section production. This section is also a larger section. Hope that helps.
I recently received an "offer" to buy my mineral rights from an organization called Black Mountain Royalty. When I emailed their contact mentioned in the letter, I was told that there was a glitch in their program that caused erroneous letters to be mailed out. However, if I sent them my revenue statement they would be glad to calculate an offer. I did not respond any further.
I talked to someone the other day who got an offer of $25,000 for their mineral interest in South Fort Worth. I discovered that the actual lease they were a part of was not the lease mentioned on the offer letter. But the lease mentioned was only a half mile away. Huge difference in value between the two leases. Be very careful if you are selling that the offer is calculated on the lease your rights are a part of.
I highly recommend that if your are even considering selling any minerals, you take the time to talk with a Oil and Gas Lawyer. Some of the letters to purchase minerals state in small print that they are purchasing ALL your minerals. So again this is very serious business. This is something that you can leave to your kids, and their kids, that doesn't cost much to maintain, till they start drilling. So don't think about it today, they are not making any more land. But they sure drill differently since 1918.
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