I am in the process of placing some MR into a trust so that I may manage them. This trust was part of the estate of a relative that recently passed and had not transferred the MR to the trust.
The description of the MR is as follows:
Sec 6&7, Tn 5 North, Range 1 West
and
Section 31, Tn 6 North Range 1 West in McClain Ok.
I do not know how many shares of the mineral rights my mother owned, this property has been divided out among many sibling over 4 generations.
How do I determine how many shares my mother owned and what would be the sale price I should ask for when I place the shares on the market?
Lime Rock is the operator of the property and they have gone before the Ok Corp Commission to get approval of multiple horizontal well bores.
Rusty: There are several avenues. First, you could go to the court house and run the title to determine ownership. Or, you can try to hire a landman to do that for you. Third, and the route I would go first if I were you, contact Lime Rock and see if they will provide you that information.
Rusty: You can search McClain County land records back to 1993 HERE. If the minerals were not transferred into the trust by a deed, then it will be subject to probate. There is likely a Will prepared in conjunction with the Trust known as a “pour over Will”. This basically puts missed assets, like mineral interests, into the trust.
To determine the number of net mineral acres owned may require some costly research. Often a company paying royalties will have done that work.
This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.
You probably mean “acres” instead of shares. But if a trust exists, then you may mean units or shares. Lime Rock will know, but they will not probably tell you unless you have the will properly probated and have title to the acres or the trust. Contact them and ask what they would need as far as documentation. Before you consider selling, you might want to find out the potential value of the upcoming wells as that is an important piece of data. Many buyers will only pay for current PDP (proved developed and producing) wells. A few may pay for future wells. Depends upon the buyer.