Unsolicited mineral offers

Activity seems to have been picking up in these townships the past couple of months. Has anyone in this forum received an unsolicited lease offer in the mail or by phone they’d care to share? Just curious as my relatives have received a few calls/letters wanting to buy or lease in these areas recently. One offer to buy in 14N-21W went from initial $1200/acre to over $3000/acre within six weeks. Would like to hear anyone’s experience with recent leasing or purchase offers in Roger Mills County.

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Crawley, Mewbourne, Upland Operating, Presidio, Douglas Fairbanks and more are filing permits for horizontal wells all over Roger Mills. Various reservoirs, Red Fork, Cherokee, Woodford, Miss, etc. The ranges you listed are within what I have heard depending upon royalty.

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First, I want to thank you for your help in a previous posting regarding mineral rights that were in a trust without a successor trustee. We followed your advice of getting an attorney who specializes in this and we have just successfully completed quieting the title. So step one is complete…we have official legal ownership of the mineral rights.

The three holdings we have now are:

  • E/2 of Section 25, Township 16 North, Range 24 West of the I.M Roger Mills County OK

    • Previously drilled with API Number: 35-129-23849
    • No oil or gas has been produced since 9/2022
    • The well status is currently “shut-in”
  • Lots one, two, and three of section 30 township 16 north range 23 west of the I.M Roger Mills County, OK

    • Previously drilled with API number: 35-129-23553
    • No oil or gas has been produced since 11/2022
    • The well status is currently “shut-in”
  • The third one is a tiny sliver about 3/4 of an acre and I don’t suspect the mineral rights to this would amount to much given the size

Now that we have established this, we are trying to work our next steps.

  • The first step is to send a demand letter to the companies that had previously leased the minerals since there are some checks that were made out to the deceased that we would like to be reissued.
  • The second step is to re-contact the Upland attorney in regards to the pooling as you recommended. We (and our attorney) tried to contact them, but nobody every responded. It looks like the pooling order is hung up in court, but I really don’t know what is going on here. Any insight here would be greatly appreciated.
  • The third thing I want to figure out is how many net mineral acres we have on each of the two main properties.
    • Section 25 appears to be 320 acres, but when it was drilled before, the lease was only for 30 acres or so based on the bonus paid at the time.
    • Section 30 appears to be 120 acres, but when it was drilled before, the lease was only for 25 acres or so based on the bonus paid at the time.
    • Does this mean we have a lot of virgin ground here? Does it mean that we have 440 acres, but only 50-60 are actually usable? I cannot find anything to help me answer this question which is important to know if we get leasing offers.
  • Once we know the net mineral acres, we can go shopping for leases if the Upland pooling order is stalled out. That sounds great, but I have zero idea how to proceed on that
  • Where can I learn about how to manage this from a legal / tax perspective? Should we put it into a trust? How do taxes and depreciation work here? I’ve got an MBA, but feel like a babe in the woods here.
  • What other questions should I be asking that I haven’t?

Again, thank you so very much for your help for us and everyone else on this forum. I can tell you that it has made a huge impact on our family which has experience more than its fair share of tragedies. The only compensation you get from this is appreciation, and know you have it from me in spades!

We received an offer from Kunu Land Company for $1000/acre for Section 32-17N-25W. It matched an earlier estate appraisal, so jumped at the money. We haven’t received any more offers for any other parcels.

Did the previous heir, cash the checks? When you say some checks, do you mean the lease bonus check or the montly revenue checks? Ifs its the latter, you will need to contact the operator whom operated the well during the time frame you are refuting.

Im not sure what your previous posts were re: the Upland pooling in Section 30? There are recent filings on section 25 (Crawley) and 30 (Upland) and since the wells you mentioned above havent released the OGL’s associated and there is currenty regulatory filings, you are bound to the previous heirs OGL and cant go shopping for new OGL’s, meaning there isnt anything you can do on this front signing new OGL’s until the current filings time expires and then the current operator fails to pay the $1 per year per acre clause and youre able to get the operator to release the OGL’s.

The 320 acres and 120 acres are the gross acres, numerous other people/families own minerals under those lands. If your ancestor leased the sections for 30 and 25 net acres, then thats what you own 99.5% of the time. Were you the only heir? If not, then that gets divided amongst whomever else.

If you are the only heir, I dont see why you would set it up in a trust unless you are old like myself? Even if there are multiple heirs that got the property along with you, distrubute the property to each heir and then create an LLC or whatever business entity suits you best.

If the wells are currently shut in like you stated and you arent getting monthly checks, theres no reason to rush out and hire someone to manage regarding taxes unless you already have a CPA, then obvioulsy loop him/her in. Like I said above, you do have current regulatory filings on the 2 main sections, so you could have wells in the future, but you wont be getting paid on those for atleast a year if they do drill a well since there are no intent to drills filed.