What To Do With Inhereted Oil & Gas Royalty And Minerals In Howard County

History: As a child I remember my grandparents laughing about owning some oil well in Texas and never anything more about it after. Both are deceased, my grandmother in 2015. Their daughter(my mother) passed in 2013 and have been estranged from my father. I was never told about inheriting anything...

I received a letter 2 days ago from a Midland Energy Co. saying that they want to purchase my oil & gas and mineral royalties on a property that they did a title research on in Pecos County that said I owned.

The letter states: Blah Blah Energy, LLC is offering to purchase all of your oil and gas royalty and minerals in the captioned property. You may still sell you(r) minerals even if they are currently under lease or are currently producing.

NE/4 of Section 3, BLK 32, T-1-N, T&P RR Co. Survey, Howard County, Texas.

Offer $**,***.** to purchase your interests.

If you accept our offer, we will verify your ownership then we will deliver a deed for you to sign. Upon receipt of the signed document (or a copy), we will send payment to you via check or wire within 30 business days of receipt of this offer. No extra costs associated with the transaction will be passed to you. This offer is subject to approval of title and may be withdrawn for any reason. It will be held open for thirty days from this date. end of letter

Does NE/4 = the NE quarter of section 3? So I own mineral rights on 160 acres?

Does the API-22737390 indicate that oil has already been found?

I need some guidance here. What should I do?

Best regards,

Mark

886-RRCPublicGISViewer.html (614 KB)

Mark,

Well API 227-37390 is a producing oil well. Someone should be receiving a royalty check from this well. Link to production data on this well:

http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab...

Some of the Horizontal wells in the area are very good oil/gas producers. Well 38251 in A-278 Completion Report showed 1,212 BOPD/579,000 MCF per day/Operator is Oxy USA, Inc./Well completed June 2015.

If I owned 100% of these minerals on this 160 acres and I wanted to sell I would price them between $30,000 and $40,000 per acre. There are numerous horizontal wells to the north and west of your minerals. In time they will be drilling in your immediate area.

GIS Map of Howard County Abstract 129/Section 3/Block 32T1N:


There are numerous vertical producing oil wells all around your acreage.

Clint Liles

Thank you Clint for your quick response. This is very interesting information. How can I find the title for this & exactly how much I own?

Mark,

I would start with contacting the Howard County Clerks Office and ask if they can help you.

http://www.co.howard.tx.us/default.aspx?Howard_County/County.Clerk

Clint Liles

Attached are three documents you will find helpful. These are:

1. A run sheet, showing all the "Kucala" instruments recorded since 1993. The current lease would be the Ronald Kucala to Element Production recorded 9/15/2011. I'll get you a copy of it. There are also some pertinent probate-related instruments. With these you could go to the operator and claim any share of royalties that are due you.

2. A pdf of the approved drilling permit for the Walker #3 well, which is clearly in the NE/4 of Abstract 129. No other wells in this section are permitted in the NE/4 so it is only this well you are potentially owed royalties.

3. The 2015 ad valorem tax appraisal. Among other things, this shows who is being paid on this property. The interests add up to 100%, so if you are a rightful heir, then one of your kin is most likely receiving your royalty (keeping it safe for you).

887-Kucalarunsheet.xlsx (10.4 KB) 888-Walker3permitHowardCountyTX.pdf (32.2 KB) 889-MineralAppraisalTableWalker3.xls (23.5 KB)

Thank you so much for the information and documents that you have provided me. I am currently tracking down my grandmothers will which I have been informed that it is filed in Howard County, not in the county where she resided here in CA.

Best regards,

Mark Kucala