Is there any advantage to being an unleased mineral owner? The company has not responded and stated they would like to keep us as unleased.
Thanks for any help.
We would liked to be leased but Parsley isnāt being cooperative. The section has been producing since 2017.
You need to add your state, county and legal description. Having a productive well and being āunleasedā are counter-intuitive. Something is missing here.
Reeves County, Section 14 C-15
Something amiss with your legal description. There are no producing wells in Section 14, Block C-15, Reeves County. Leasing in that area is Apache.
I copied this from another post from the forum:
Parsley Energy is operating two Ranger wells which include Section 14, Bock C-5. These wells began producing in 2017. You should contact landman at Parsley Energy about the Ranger C4-6-14-ā¦
Are the minerals you own in an āundivided section,ā or do you own āxā many acres of minerals in a specific part of the section? Did the company attempt to lease your minerals but you could not come to terms?
We own 20 acres.
No offer has been given to us.
Is there an advantage to a company keeping individuals as unleased mineral owners?
If the section is not undivided, there may be no need to lease your minerals, e.g., the company might have only leased a relatively narrow rectangle of land through the middle of the section owned by other parties, and minerals outside of such an area might not need to be leased to drill and produce. Since you were not contacted that would seem to suggest one possibility is that the section is not undivided. Perhaps try to find a more complete description or wording from the deed by using TexasFile.com.
These are allocation wells and not units. The Ranger C4-6-14-4303H goes through two 20 acre tracts - one labeled Army and on labeled Samuel as shown on the as-drilled plat. The permit plat seems to note that there are some unleased minerals in those 20 acre tracts. If one of these is yours, then most likely you own a fractional interest in the 20 acres and not 100% of 20 acres. In the permitting process, Parsley filed that it could not locate a Donald O Becken whose last known address was in MN. You need to determine exactly where your 20 acres is located. If an allocation wellbore does not cross your tract, then you will own no interest in the well. You need to determine exactly how many net acres that you own. Are you sure that you own minerals and not just surface? As you are an unleased mineral owner, then you will have to wait until the well reaches payout (the date when revenues cover all drilling and operating costs) and you will be paid as a non-operating working interest and receive all of the revenues with respect to your interest, less costs. You can ask Parsley for an accounting to find out how close the well(s) are to payout. Each well that crosses your minerals will be treated separately.
Our great grandfather bought the mineral rights from him around 1940. My aunts were in a lease in 2011 which has expired. It would have been nice if Parsley would have contacted the aunts instead of Becken.
Looking at the Reeves County deed records, it appears that your family is not being recognized as owning any minerals there. It may be that Parsley is telling you that they want to keep you unleased rather then tell you that they do not believe that you own any minerals. There are leases to other Becken family members (addresses in MN mostly) to Steward Energy LLC. There is also a 2015 filing of last will and testament for Donald O Becken, deceased and several affidavits of heirship. Do you have the recorded deed from Becken to your great-grandfather? If not, then you need a landman to help you find that deed. Gather the other recorded documents to prove title from your great-grandfather to the current family owners. The landman can also determine if there was a deed from your great-grandfather back to Becken or to another person. You have some work to do here.
This puzzle is coming together thanks to you.
Becken and our great grandfather (also from MN) were friends.
The four aunts (all granddaughters) were in a lease in 2013. The grantee was also Steward title. Two aunts have since passed and the other two were receiving inquires to lease their rights. Since the two remaining aunts were dealing with serious illnesses of their sisters no lease was signed.
Itās my understanding that it is better if you are unleased as they are required to pay higher royalties than MOST lease deals (Iām guessingā¦ but the difference could be as high as 25% gross as opposed to 25% or lower netā¦ this is just from seeing posts here). If producing in your area I was told by two experts that have sadly been shut down on this site, that every well has a āsocial securityā number with allocations listed at each courthouse. I need to research one area of my families rights that is listed as producing yet no check was ever received. I could be kind of wrong on the numbersā¦ but you need to look this up with the county courthouse. YOu can pay a landman to do it for youā¦ but probably worth a phone call or two on your part first
No royalties are paid on unleased minerals. The unleased mineral owner is essentially in the place of the lessee. He receives 100% of the revenues from his minerals, but that is reduced by the well costs - operating costs, workover costs, ad valorem taxes paid by the operator, operator overhead, etc. He only receives this net income after the well has āpaid outā - meaning 100% of the drilling costs and ongoing operating costs have been recovered from the sales revenues. If the well is not good, then the well will never pay out and the unleased mineral owner will receive nothing. A great well could pay out in 1-2 years and then he starts receiving the net income. Wells do not have āsocial security numbersā and allocations are not filed at the courthouse. A well is assigned an API number made up of 2 digits (state code) - 3 digits (county code)- 5 digits (well # drilled in the county) by the RRC. Texas = 42 and Reeves County = 389. Well records and production are filed with the RRC. The operator sends a list of royalty owners and overriding royalty owners (with addresses and royalty decimal interests) to the county so that property taxes can be assessed.
My name is neysa samuel Iām new to this me and my family own different sections through grady county my family lives near durant and talihina Oklahoma. I live in nacogdoches texas if you have anymore information please post thank you section 31 township range5 and also section 6 township 8 range 5 west are the ones I know right off my head
Welcome to the forum. It would be more useful if you would post in the particular state and county where the lands are located. Go to the HOME area and see the New Topic button. Make the title of your question include the County and Section, township and range and a then ask a direct question. Choose Grady County, OK to post it.
If they are extracting oil & gas and you donāt have a lease on legitimately owned Mineral or Royalties they are STEALING your oil. Get on the phone with the Oil & Gas Commission in your state and get a lawyer to send the crooks a threatening letterā¦
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Do you mean block C-5 or C-15?
Sorryā¦It is C-5.
Parsley sent the two sisters a payment for 2019 for one of the two wells August 28th. We are thinking we would be receiving payments on Ranger 4301H and 4303H since someone indicated payout has been reached over a year ago.
Also I went on courthousedirect.com and it shows 20 acres under their names. We are not clear to the number of acres we own.