Hello! My parents passed away in 2015 and left my sister and I mineral rights, one in Hughes county that has been producing for a while and 4 in Logan and 1 in Delaware counties that are not. I am interested in selling my rights to all (maybe keep the Hughes) because I dont have any heirs and I just would rather not deal with the rights, in all honesty. The estate lawyer valued them at over 150k all together but Im sure thats an insanely high estimate. How would I go about selling them (hoping its not as difficult as selling the 7 burial plots I inherited too…). My parents signed a lease on the Hughes Co. Drill site in 2014 or 2015 and I guess the way that its worded is that as long as its producing, therw is not 3 year re-lease bonus so that was a kicker when I found that out from (then) Corterra. Thank you for the help in advance!
If you list the descriptions, then we can help you with the activity in the areas and then you will have better information before you decide. The estate value helps you so that you do not have as high a capital gains tax if you sell since you have a step up value.
All oil and gas leases contain the term that the lease will remain in effect as long as oil or gas is produced. That is universal. There are people on this website who buy minerals or you can put them in an auction site. I can’t speak for the Logan or Hughes counties properties, because that will depend on location, but it is likely that the Delaware county property has no value.
Delaware (SW/4 NW/4) 23N 23E 14
Hughes (N/2 NW/4) 07N 09E 28
Logan (SW/4) 16N 3W 32
Logan (SE/4) 15N 3W 7
Logan (SE/4) 16N 3W 32
Logan (NE/4) 15N 3W 7
Thank you all for any and all help with this.
Delaware (SW/4 NW/4) 23N 23E 14–no wells, no leasing
Hughes (N/2 NW/4) 07N 09E 28-Corterra/Foundation Energy Management Swadley 2833-1HX -very, very nice well. Has a lot of years left on it if no mechanical trouble. Potential for more wells. The value is all in this well and it is not insanely high…This is probably a really good keeper or you might get more than you think from selling. Depends upon how many acres you have.
Logan (SW/4) 16N 3W 32-old wells none producing at the moment. No nearby leasing.
Logan (SE/4) 15N 3W 7-old wells none producing at the moment. No nearby leasing.
Logan (SE/4) 16N 3W 32-old wells none producing at the moment. No nearby leasing.
Logan (NE/4) 15N 3W 7-old wells none producing at the moment. No nearby leasing.
Thank you sooooo much for that information. My husband checked on his end and saidbhe saw activity on one ofnthe Logan county ones and it looks like its been going for about 3 years but not much production. Keep in mind, we obviously dont know too much about drilling and stuff but he said he sees production at Logan section 32 township 16N range 3W. We’ll name “Ice 1613 1H-32”. Operator OLIPDP 1 LLC. Is this something different?
ice 1613 1H-32 R is in 16N 13W which is in Blaine County.
Gotcha! I appreciate all your help. I guess Ill hold onto Hughes and try to sell Logan. I dont hold high hopes for Delaware but ill try to sell them too.
You really need to know the decimal interest on the well in order to assess it’s value. M_Barnes says $150,000 “is not insanely high”, but there’s no way to know anything about the value here without knowing how much of it you own. You could have 10% of the well, or .0000000001% - one would be worth a whole lot more than $150k, the other might not be worth $150.00.
On all of the properties, it would really help to know how many Net Mineral Acres you have in order to determine the value. Good luck.
Texas Tea makes a good point.
If you want to sell, it is good to make a spreadsheet that has your State, County, Section, Township, Range, Description with all of the words such as “an undivided 1/4th interest in the SW4 NE4 of …” , net acres and royalty if leased, Decimal if receiving royalties. Also a date of the last lease.
How would I find out how much I own? Do I need to call the counties they are in? And, if so, what division? Cointy assessor. Maybe? Again, thank all of you for this help
I do know,when my mom had them, most are 3/16ths of the Logan. 3/4 is Delaware. I do share with my sister but I think its divided between us… we dont both own 3/16th.
Do you have the title documents such as a will or a trust document? They usually explain the division.
If you have a copy of the lease and a check stub sitting around from the Hughes County property, you could figure your net mineral acres out from the NRI on the stub.
Here is what I found from the General inventory and appraisal of their estate after they passed. I was the executor.
(All) Delaware (SW/4 NW/4) 23N 23E sec 14
(Undivided 1/4) Hughes (N/2 NW/4) 07N 09E sec28
(Undivided 3/16) Logan (SW/4) 16N 3W sec 32
(Undivided 1/16) Logan (SE/4) 15N 3W sec 7
(Undivided 3/16) Logan (SE/4) 16N 3W sec 32
(Undivided 1/64) Logan (NE/4) 15N 3W sec 7
I just realized, all of this is split with my sister so half everything, I believe. As for looking at the check stub for Hughes Co, it says .00143555. I assume half of 1/4 is 1/8 which would be .125 so I dont really know what is going on. Im sure it has to do with the section and the way the well is drilled…I dont know. But here is the breakdown. Thank you all again!
(All-half of 40 is 20) Delaware (SW/4 NW/4=40 ac) 23N 23E sec 14. Half of 40 would be 20 acres.
(Undivided 1/4-20 acres (half of that is 10 acres)) Hughes (N/2 NW/4=80 ac) 07N 09E sec 28 (Decimal .00143555). Section 28 49.3156%. I can get close to the decimal with 10/640 x .1875 x .493156%=0.00144479. The equation is net acres/spacing acres x royalty x % perforations in your section. Off by 0.0000124 so something tiny is different.
(Undivided 3/16 of 160=30-half is 3/32 of 160=15 acres) Logan (SW/4=160acres) 16N 3W sec 32
(Undivided 1/16=10 acres-half is 1/32 of 160 = 5 acres) Logan (SE/4=160 acres) 15N 3W sec 7
(Undivided 3/16=30 acres-half is 3/32 of 160=15 acres) Logan (SE/4=160 acres) 16N 3W sec 32
(Undivided 1/64=2.5 acres-half is 1/128 of 160=1.25 acres) Logan (NE/4=160 acres) 15N 3W sec 7
This is a first guess based upon your last set of numbers. If there any other words attached to the descriptions in an earlier will or this will, then the values may change.
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