I am getting all my informatiin together to ask a question. But could someone please explain what is the difference between federal and state leases? I have both but the federal is way larger in acreage.
I am puzzled by your question. I own in Lea County, NM, and I subscribe to DrillingInfo. I am aware that some lands/minerals here and there around my tracts are owned by the State of New Mexico, and some are owned by the federal government. Sometimes I will check for federal or state leases near me to see what the bonus amounts have been coming in at. Even though the royalty and number of years and other factors in the lease document are quite different from any lease document that would be used if someone wanted to lease my minerals, the bonus amounts on state and federal leases are somewhat of a frame of reference and it’s helpful to be aware of them. The State of New Mexico shows tracts offered for their upcoming auction, and results of past auctions. For federal leases, the BLM or Bureau of Land Management has online information about lease auctions (sometimes called lease sales). [I am especially uncertain what you mean when you say that you “have” both federal and state leases.]
I am totally ignorant in this subject. I have been trying to find answers. I had inherited this from my husband. It is a total of 3,120 acres in eddy county. Some listed under federal, then some under state and finally a few under fee leases. Where on earth do I even begin?
From your post, likely you own an interest in wells with Fed or State in name. The acreage in a well unit will include minerals owned by Federal and/or by State and some fee minerals (owned by individuals). However the total acreage will vary depending on how the unit was permitted by Nee Mexico. Question is whether you own minerals or an override or working interests. Did you get a 1099-Misc with income on royalty line or 1099-NEC which will be working interest income? Look at a check detail and see if the interest type is RI or OR or WI. Look at the legal description in deed or assignment into you or into a partnership or company owned by your husband. Do you have a New Mexico oil and gas lawyer or a landman who can review your information?
I get a 1099-misc that list roralties earnings. All my paperwork state owner. Between the 3 different types if lease they are good to 2050, a totaling 3120 acres.
The 1099’s won’t tell you much about what you own. I like to get actual checks in the mail, because the “check stubs”, have valuable information. The check stub consists of a tear-off portion in some cases, and sometimes the information runs to extra sheets of paper. But it’s possible your husband had all the royalty payments set up for some kind of direct deposit, in which case you would need to know the log-in information for the third-party website that displays the information that would otherwise be on the check stub. So one question is whether you have check stubs in your records. Also, do you find any copies of Division Orders, which are sent by the payors when a new well comes into production, would be even more informative. And do you find any copies of deeds and/or leases? Have you tried calling the payors? Some members here on the forum, especially those who own in Eddy County NM, may have experiences with your payors. Some payors will answer the phone; others are too busy and you have to leave a message or send an email and then wait for a callback. Some call back within a day or two, but most companies seem to have a longer turn-around time.
To the original question. Fed leases owned by (leased out by) the Fed government, State leases by the State of NM. State leases are mostly less than a section. Fed leases can be thousands of acres.
Chances are if you are talking about 3120 gross acres you own an override (ORRI) in some larger Fed leases. In addition to maybe some other stuff.
When you ask “where do I begin?”…what are you trying to begin?
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