Hello all, After searching and fumbling through several forums, I'm hoping that someone can help our family. We have been contacted by Antero about signing a modification for 126 acre tract in the south west district of Doddridge Co. WV. I do have the parcel number/map but as of now (still searching) for the api well number. I believe the parcel is for Emmit James/Leggett farm.
From what I've read in the forums, a 10 year lease is quite extensive. They're offering us $200 to sign, and 12.5% (1/8th). I have no idea how to get in touch with any other current royalty holders. On one of the documents it says we have mineral/gas rights to 1/2 of 2/11th of 1/22nd int. of 126 acres. Does this seem to be a fair offer?
Time is of the essence; I've also been advised that Antero is anticipating sending out letters to all of the royalty holders that they've been unable to get any response from stating their shares will be placed in an account with anyone else that didn't jump on board for their bonus. I assume this is what pooling is? Also, who is responsible for property taxes if you have mineral/gas rights under the property? I do understand the 1099 form & reporting any income made so the government gets their "cookie crumbs" too.
This is a good forum to get some answers. I can't help you with everything, but I do know that $200 and 12.5% is low - it is basically their "gee, I hope they take this because they don't know any better!" offer. You can negotiate much higher terms as far as that goes. There is also a lot of legalese language in the rest of their offer that a good WV oil and gas lawyer can protect you from being taken advantage of. Keep in mind that EVERYTHING they present you with benefits them and not you! If you want benefits, you have to negotiate changes. They also tell you that you have only a short time or everything is lost.....be wary of that. Wish I could help you with the rest of your questions.
Hi Ms Smith, I might be able to help with some of this. If you want to Friend me on this forum I can look up some of this on a website I have a subscription for, to maybe help locate other owners (probably relatives). Sometimes that is easy sometimes not. I just checked and have found a little info. Maybe also help with the well location. Are you currently getting paid for a producing well? not necessarily from Antero. They often have agreements with other companies where Antero drills new deeper wells which require a modification in the lease.
You say this is for a modification of a lease. Probably it says something about pooling with other tracts. This would not be a new lease. Your current lease is probably the 1/8 which was the standard for many years.
I just went through this with Antero in a different county, and they were adamant about not making ANY changes in the lease. That $200 might be as good as you can get with them, since your interest is small.
You should ask them for information on the current lease, and get a copy of it. Get as much info as you can.
If this were a new lease, these numbers (1/8 royalty, $200) would be tiny. But from what you said it sounds like a modification of an existing lease.
If they or anybody come to asking for a new lease, you can ask for a lot more.
And about taxes, I might be able to help you with that. Somebody is paying taxes on the property but maybe not on your share. There have been a lot of mineral (oil and gas) rights that were inherited but the heirs didn't know it due to many factors.
Yes there will be income taxes due from any money you make from this so keep track. The fun is just beginning!
Welcome to the club! My siblings and I are in a similar situation. I started a thread some months ago that you should be able to locate and follow if you are interested. I post whenever there is an update. Nancy Mosley was extremely helpful. She offered me the same help that she is offering you, and it really helped. Eventually we hired an attorney, Kyle Nuttall of this forum (there are others). Felt that helped us to get the best possible modification with Antero. From what I understand, what you are able to negotiate is on a case by case basis. An attorney knowledgeable in the area is in the best position to guide you. We live in California, so had no clue. Good luck!
I would see Kyle. By the time you fool with the taxes, it isn't even worth signing the contract. If you are looking for other royalty owners.. It might be worth your time/energy to join ancestry.com. I joined 10 years ago, it wasn't worth it. But I joined again last night. It isn't cheap, but it is worth every single penny. You might just do the 2 weeks trial. Now, when you put in the information you know, it will automatically make connections for you. Seriously, I found more information in about 15 minutes than I found in hours and hours a few years back.
It will cost you at least $20 a year extra to file the taxes on the additional 1099 for those royalty checks. (That is what it cost my Mom the last time I did her taxes.)
Nancy knows her stuff, so she can probably be of great help if she was offering me, I would jump at the opportunity to pick her brain. =)
Kyle is very good. Well worth talking with. Always best to get good legal advice before signing anything binding, which the modification certainly is. Antero does seem to have gotten more stubborn about modifications as I understand.
And, yest Ancestry.com is very useful too. I think so many people have reconnected, or connected for the first time, with their distant relatives, due to these oil and gas rights.
I sent you a friend request :) I also found your original post as well, thanks! So these documents Antero sent you, the ones that required your signature...did yours say $1.00 as well? I'm not sure if this is in regard to court mumbo jumbo or they really do mean $1.00 The documents that we've received states nothing about how long they're allowed to drill, or any percentage of proceeds we are entitled to either.
I'm am utterly confused, and latest "suggestion" is..they need to hear from me by November 24th or they'll petition the court and will likely prevail with ending result "I will no longer be able to share in the benefits, i.e royalties, of the proposed well (s)"
*sigh*
Robin said:
Hi Roma,
Welcome to the club! My siblings and I are in a similar situation. I started a thread some months ago that you should be able to locate and follow if you are interested. I post whenever there is an update. Nancy Mosley was extremely helpful. She offered me the same help that she is offering you, and it really helped. Eventually we hired an attorney, Kyle Nuttall of this forum (there are others). Felt that helped us to get the best possible modification with Antero. From what I understand, what you are able to negotiate is on a case by case basis. An attorney knowledgeable in the area is in the best position to guide you. We live in California, so had no clue. Good luck!
You were right about the short demanding time frame...they have however raised the modification bonus to $500 now to sign. It doesn't say this on the documents anywhere, nor does it state any % or time frame of lease ending.
Stephanie said:
Hi Roma,
This is a good forum to get some answers. I can't help you with everything, but I do know that $200 and 12.5% is low - it is basically their "gee, I hope they take this because they don't know any better!" offer. You can negotiate much higher terms as far as that goes. There is also a lot of legalese language in the rest of their offer that a good WV oil and gas lawyer can protect you from being taken advantage of. Keep in mind that EVERYTHING they present you with benefits them and not you! If you want benefits, you have to negotiate changes. They also tell you that you have only a short time or everything is lost.....be wary of that. Wish I could help you with the rest of your questions.
Roma, it sounds like there is already a lease in place, held by production, signed probably by your ancestor. The company should be able to help you find out the book and page number of the lease or the name of the original lessor
, the one who signed the lease and you could then get a copy of it.
The $1 is standard language so they can file the document but not reveal just how much they paid you. They might not want to pay somebody else that amount so they just say $1.
Thanks for explaining the $1.00, I know sometimes it states this in wills. The record is in Lease book 115, page 414 in Doddridge County, WV. From what I've researched thus far, the lease is held by DC Petroleum. Your drop sheet information came through perfect by the way :)
On the left side near the top is a drop down with the default of "individual". Choose book/page. I think you can't print the document but can screen print, and can order the document from their County Clerk. Search around the forum for more discussion of this.
Glad it worked Roma! There are many details in these oil and gas dealings, even with the leases already signed. This is a great forum for sharing information.
Roma S said:
Hi Nancy,
Thanks for explaining the $1.00, I know sometimes it states this in wills. The record is in Lease book 115, page 414 in Doddridge County, WV. From what I've researched thus far, the lease is held by DC Petroleum. Your drop sheet information came through perfect by the way :)
