The standard rate is too low but it’s just starting point. Seems ridiculous they offer so little but it’s the same for many fractional owners. The real money is the back royalties on the ledger in suspense. That much I’ve learned.
That is unbelievable that they would even offer that.
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Exactly. Seems disrespectful. But that’s what they do. Standard practice apparently.
For all of you questioning the offer, its not an offer, the well was drilled and the company is simply trying to pay the mineral owner. The original poster stated the mineral rights are in a subdividion, so owns a tiny fraction in the well, likely 1/3 interest in 1/16th of an acre. When you own that small of a % in a horizontal well, it takes a long time to get paid.
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Thats very true
Are you sure you have no claim? If they were married this could be community property in which case his family would own a portion
I will pay you $200 and I don’t know where it is located. And yes, they are ripping you off. As someone suggested, you will have more than $100 (or my $200) worth of fun seeing what happens. And someday, you might start receivng money in the mailbox.
They. Low ball every one to be honest I am interested in them as well, you have such a small amount to make anything off of it if you do your research a little bit oil and minerals are worth nothing unless coming out of the ground and being used but if you are still confused and don’t want to sell I understand, but it is basically worthless 100 too 250 is the most I’ve seen them really offer on fractions of a well you could be making pennies on the dollar and not receive a check 25 dollars if you change it and 100 if the keep holding on to it and releasing the payments.
To clarify the original thread, a well was drilled and royalties were ready to be paid out according to a particular lease with a certain net mineral acres and royalty. This was a Division Order, not an offer to buy. It was on a very small net acres. Division Orders typically have a $100 minimum for a check to be cut. Nothing funny or fishy going on- no ripping off-just normal legitimate royalty payment trying to be straightened out.
In TX, you need to sign the DO in order to be paid and you can change the $100 to $25 to get paid more often. Once the DO is signed payments begin and last until the secondary term of the lease is finished-which can be decades.
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