Myself and my siblings received an offer to acquire oil gas and mineral lease. It’s for Shelby County, Texas, John Haley Survey A-291. It’s Sandman UT4, whatever that means. We had no idea we even owned this. I’m trying to learn. The offer says we have 24.79 acres, and they will pay a bonus of $250 per net mineral acre and royalties of 3/16, with a lease term of 3 years with option to extend two more years.
Do my siblings and I split the 24.79 acres or do we each have 24.79 acres?
Could there be others owning this same 24.79 acres - like other relatives - and we split it even more?
Is the offer good or do we need to negotiate?
The landman said we have a very, very, very small portion worth about .65 but they would pay us $100 to sign the lease.
This offer is from Petroleum Partners, Exploration Land Services.
A permit has not yet been filed for the Sandman unit, but the Battery unit plat shows it as west and adjacent. Based on that, I suspect that your tract is number 19 J. Fleming et al on the attached pdf. There were 31 separate leases taken in 2009 on this tract. You can view the names of the O&G leases on the Shelby County Clerk website under Instrument number 2009010222 to see if you recognize a family member from whom you may have inherited an interest.
(Welcome - Shelby County Clerk Web Access)
If this is the tract, it is has multiple undivided ownerships. Clarify with the landman if the 0.65 is your net mineral acres only or for all siblings. You can ask him for his mineral ownership report. There is no hurry to accept or sign anything since they want a 2- year extension. Get as much information as possible, and check around for current lease pricing and going royalty rate. Also know that you can present your own lease addendums.
I once asked for a flat $250 each for myself and sisters to take time out of our busy schedule to read, sign, notarize and mail on a half - acre interest, which worked out to $2000 an acre. They paid it.
Kim, unless you are in a hurry just slow down and get some research for a better decision. If you know the name of the relative that you inherited the mineral interest, then you can try to look up the deed into that person on Shelby County Clerk Records Search | TexasFile . Those records go back until 1882. You should also contact the Shelby Co Appraisal District https://www.shelbycad.com/ to make sure the interest is not being taxed. Also ask them about any possible delinquent taxes. Tell the landman you have to do some research before getting back to them. You will be surprised how that will possibly heighten negotiations. Get in touch if you want some more help.
Good to hear that you have started your research and already met with some success. I started acquiring minerals for my portfolio in 1981. I have had some great mentors over the years. Their best advice, be patient and get more information. Good luck to you.