My grandfather owned a few hundred acres in Dawson County and retained the mineral rights. It is something we knew, but have forgot about, until recently. We've been getting offers to buy the rights. So now we are looking to see what, exactly , we have here. My search has taken me to many places, introduced me to many terms, and quit frankly block walls. I was fortunate, in my search, to come upon this sight. I'm like a babe in the woods, I have know idea where to start and where I'm going. Any help, or direction would be greatly appreciated. Oh, another wrinkle here is that I live in Calif. Thanks, Ron
Hello Ron,
I do not recommend selling your interest or rights. Have you pulled the warranty deed up on the property? If not, you may want to do this through the courthouse. Plus, if the property never changed hands to the rightful heir, you and your family may want to look into doing that. My family (which is rather extended) still holds property owned by my great, great-grandmother. Currently, the property has an active oil lease, and they are starting horizontal drilling. I wish you luck in your search.
Ron,
Welcome to Mineral Rights Forum. My opinion is never sell your mineral rights. What is the Abstract # of your minerals in Dawson County? We can check the GIS( Geographic Information System)map and see what is located in the area of your minerals. I see where you have already joined the Dawson County Group and some of those folks may have some info. for you.
Post your Abstract # and lets see what you have.
Clint Liles
The letters you are receiving are a legal but sometimes deceptive way to obtain your mineral or royalty rights. I’m not saying they are a bad deal but I would not even consider it with out talking to a represenitive from the company. And then only after consultation with an attorney. Some are good companies but there are a lot that are fishing best to trash them. If a good company wants your minerals or a company wants to lease they will contact you in person.
I'm new to this myself, Mr. Sims but I must agree with Mr. Liles and Mrs. Rose. By selling your rights you effectively give over any future earnings for a certain sum. Let us say that you instead lease your land out...you would be given a certain amount per acre and a bonus on top of that. The amounts would not be as great as selling your minerals altogether but don't forget the royalty payments!
Any fair terms for a lease would include some percentage of royalties that you would earn from whatever is produced. In this new age of horizontal drilling, getting 1000 barrels IP out of a well is not unheard of. While all wells decline in production rates, really good ones can produce good numbers for a quite a long time.
Another thing is that Dawson county is still relatively cheap in comparison to Midland, Martin etc etc. ...
If horizontal drilling produces good numbers out of Dawson then you can expect the price per acre to rise as well.
There are some very knowledgeable people on these forums, I would definitely take your time, learn about everything you can and ask questions.