We were sent a letter from Red Deer Resources concerning 8.88 acres we own (North 80 acres, southwest 1/4 and the north 1/2 of the southeast 1/4 of section 76)? This company wants us to sell the interests, both land and minerals, to them. They have stated that they have purchased all of the land except ours and if we don't sell to them they go forward with a partition suit and will end with a sale on the courthouse steps?? We have no idea what any of this means and hope someone can explain some of this? they have said $550 per acre for surface and $550 for mineral. Can they force us to sell to them?
thanks in advance
meloni,
The way I understand it if the taxes haven't been paid the property could be auctioned off. Possibly someone else with more knowledge about this legal jargon will chime in. Have you been paying the property taxes on this land? Personally don't think they can force you to sell to them. Sounds like a scare tactic to me. Don't sign anything until you find out more details. Now is the time to talk to an attorney. I do know some scams have been pulled in Robertson County, Texas and in Arkansas with certain individuals and companies stealing peoples minerals. Good luck and keep us informed.
Clint Liles
If you only own part of the 80 acres, and they have bought the other shares, they can file a partition suit. However, it is usually divided, unless the commissioners appointed determine it cannot be divided, in which case it may be sold. Sounds like a squeeze play.
The surveys are such a mish mash in this part of Texas. Just where is your property located? A lot of properties are not divided when estates are settled. You end up paying taxes on your portion of an undivided interest. If you know who owns some of the rest of the property, talk to them and find out if the oil company is lying to you. You may be what they see as a soft target. They are probably telling the same story to everyone else.
If they go forward to partition your interest out, insist upon a property with access to the public road way. Don't be land locked. You also want to have access to electrical service.
Be aware that there are some wind farms being developed in the county. Some of these lands people are really sneaky. They can lie out of both sides of their mouths.
For what it is worth, land hardly ever comes up for sale in this county. I see that as a low ball figure. You need to hire a lawyer if they try to snooker you. Don't be taken advantage of.
Well it seems as if Red Deer Resources is a company owned by Salem Abraham. The Abraham family were pioneers in the oil and gas business in north Texas. It looks to me like you are dealing with some really deep pockets.
Just where about is this land located? How many miles in what direction from Canadian?
I wish you luck however you decide to handle this issue.
Yes I checked and the property taxes have all been paid.
This what the area is according to the tax office ...
Parcel Id/Owner Seq: 1587/6
Abst/Subdiv H&TC
Block 42 Lot 76
Legals: N/PT SEC 76 BLK 42 H&TC
UND INT IN 320 AC
Also on a previous email he states that SAA owns 97% of the 320 acres ( surface interest and 70% of minerals)with ours being the only holdout.
meloni,
The way I read this map A-1091, A-1215, A-1216, A-?, and A-27 comprise Section 76.
Clint Liles
Well, it looks like you have several options. First you could do nothing and just remain a cloud on the title. This would give you the right to enter the property and exercise your right as a partial landowner. He may try to have you partitioned out, but that would involve a long and expensive legal battle.
Or you could sell out to him and keep the mineral rights. If there is a possibility of doing so, I would recommend it. But squeeze him for everything you can get. Remember those deep pockets.
Are the water rights intact? That will make the property more valuable.
Also, remember that there are wind farms being developed in the area. If your property is an impediment to the development of his property, you have a good bargaining chip.
The minerals will eventually be exhausted, but I doubt the wind in Texas ever will cease blowing. Wind farms pay royalties just like minerals, but if a windmill lands on your property, you get paid. If not, you just have some interesting wind mills on the neighbor's place to watch.
That is my opinion on the subject. I hope you will examine all alternatives before you make your decision. I wish you luck with this.
meloni,
Sounds like some good advice/thoughts from Robert.
Clint Liles
So we could sell him the land but keep the mineral rights?
Yes, definitely keep the minerals.
Clint Liles
meloni daly said:
So we could sell him the land but keep the mineral rights?
Yes, you can sell the land and keep the mineral rights. Given who these people are, I suspect they are doing something that will be really profitable. You can just ride along and take advantage of their expertise.
Good luck, and when you set the price on the land, remember those deep pockets.
Well, a quick look on Google Earth, and it appears someone is building a golf course in the area.
they have offered $550 per net surface acre and $550 per net mineral acre...for a total of 9768.00 for surface and mineral or surface of 4884.00. it also states they are mainly interested in the surface rights for the 8.88 acres...
Ask for $13,500 an acre and keep the mineral rights. Let's see how badly they want it.
lol...we asked for $5500 per acre and keep the mineral rights back in Nov and this was their response....
Hi Doug,
Thanks for your response. That's way out of the market price range. Everything else in the area has been purchased at $550 per acre. We will offer you $650 per acre if you and your brother sell or $550 if only one of you will sell.
If we do the partition suit both of our interests will sell at public auction where you can buy ours or we can buy yours, which will be fine with us as well. We think if this happens, the price will be closer to $500 per acre.
Please let us know if you change your mind. Otherwise, we will proceed from here.
Thanks,
Well, if land in the area is priced like that, let them buy elsewhere. But they want your particular parcel. When building a five million dollar golf course or a twenty million dollar gas processing plant, a couple of hundred thousand dollars for land is nothing. There will be room in the budget.
Land is worth what people will pay for it.
As for partitioning you out, I doubt they will want the bad publicity of some millionaires using a corrupt court system to rob a small property owner. Image is everything.
so should we ask for what you suggested earlier? lol
ok wish us luck...I know their heads will explode....lol
