Lease Assignment in Doddridge County

West Virginia Mineral Rights Doddridge County, WV
1

Hello,

My name is Susan and I am trying to help my mother. About a month ago she received a phone call from an investigator working for an oil company to try and locate mineral owners. My father, now deceased, and she purchased, what the oil company sent says, Assignment of Lease. It says they bought 1/16th of all right, title and interest in and to that certain estate. It has a Lease #, at Page #. This took place in 1968. Antero sent her an offer to buy her shares for $2187.00. My mother remembers the name of the man that sold it to them but she does not remember receiving any kind of royalties from this investment. When I contacted the Antero representative, he said she owns a working interest and if she doesn't sell to them she will be responsible for expenses incurred while drilling. So I don't want to spend a lot of money on an attorney but I also have no idea what is right here. First of all, wondering if there have been any royalties that she should have received in the last 45 years, and second of all wondering does she just sign it away for the $2187? We live in Minnesota so we don't have a clue about West Virginia and what is taking place there. Any advice is appreciated!

Susan

2

Hi Susan,

You are doing the right thing by investigating options before making a decision. There is a lot of horizontal drilling going on in Doddridge and Antero is trying to get your mineral rights in order to secure up large tracts of land into units where they can put in another well. They (and probably all the oil and gas companies) approach family members like you who live out of the area, inherited rights from an old lease, and probably didn't even know you had rights, with the hope that you will give in to THEIR best case scenario and sell them for what they consider, small change.

I am not an expert, but I have been reading a lot in this forum and I can give you my opinion. I recommend you form your own opinion, but I think it would be most wise to keep the mineral rights. Antero is telling the truth that you will have to help pay to process the minerals, but what they are not telling you is that you will also profit after paying. From what I understand, you do not have to come up with the money to help process the minerals, it is deducted from what they pay you in profit. That is why they want your rights because there is a potentially BIG profit involved.

If you decide to keep your rights and sign a lease with Antero, it is most advised by everyone I know on here who has gone through this lease signing ordeal to either hire a WV oil and gas lawyer to represent your interests on the lease or to research and learn everything you can about leases and terms before negotiating with them and signing. Researching yourself is very time consuming and stressful (I know from experience).

The oil and gas companies are famous for using tactics to pressure you into signing away or signing a lease quickly and for much lower than you can get if you negotiate terms. The leases and deals they offer you do not benefit you in ANY way, but are just enough to tempt you to to sign. They may tell you there is a time limit, but there really isn't. They may tell you this is their best offer, but without a lawyer behind you, you have no way to know that - and it probably isn't. They will tell you half truths, like what they said about how you will have to share in the costs, but they will not tell you the whole truth because you would not want to sell to them or if you still did want to sell, you would ask for a lot more money.

Bottom line is, your mineral rights are very valuable even if they seem like a small interest (1/16th). Do not be hasty in giving them away.

As for back royalties, there is a website to look up unclaimed property held by the state. If the old well was giving out royalties and the lease was reassigned to someone else, but the leasing company never got a change of address or affidavit stating the new ownership, then they would have sent the royalty payments to the state to hold. You can go there and type in some of the names you have and see what comes up (make sure to scroll down after hitting search because it looks like it didn't do anything but the list is below and you can page through it). Here is the website: http://www.wvsto.com/dept/UP/Pages/ClaimInformation.aspx

Also there are a few places to research specific wells and their productivity. Here is one: https://apps.dep.wv.gov/oog/wellsearch_new.cfm You don't need to fill in all the fields, just one.

Here is an interactive well map: http://tagis.dep.wv.gov/fogm/ that will give you info like the types of wells, locations, and production history.

Keep asking questions and there are lots of people here who are happy to help.

Stephanie

3

Thank you so much this gives me someplace to start and things to think about and explore. I appreciate your comments!

Susan

Stephanie said:

Hi Susan,

You are doing the right thing by investigating options before making a decision. There is a lot of horizontal drilling going on in Doddridge and Antero is trying to get your mineral rights in order to secure up large tracts of land into units where they can put in another well. They (and probably all the oil and gas companies) approach family members like you who live out of the area, inherited rights from an old lease, and probably didn't even know you had rights, with the hope that you will give in to THEIR best case scenario and sell them for what they consider, small change.

I am not an expert, but I have been reading a lot in this forum and I can give you my opinion. I recommend you form your own opinion, but I think it would be most wise to keep the mineral rights. Antero is telling the truth that you will have to help pay to process the minerals, but what they are not telling you is that you will also profit after paying. From what I understand, you do not have to come up with the money to help process the minerals, it is deducted from what they pay you in profit. That is why they want your rights because there is a potentially BIG profit involved.

If you decide to keep your rights and sign a lease with Antero, it is most advised by everyone I know on here who has gone through this lease signing ordeal to either hire a WV oil and gas lawyer to represent your interests on the lease or to research and learn everything you can about leases and terms before negotiating with them and signing. Researching yourself is very time consuming and stressful (I know from experience).

The oil and gas companies are famous for using tactics to pressure you into signing away or signing a lease quickly and for much lower than you can get if you negotiate terms. The leases and deals they offer you do not benefit you in ANY way, but are just enough to tempt you to to sign. They may tell you there is a time limit, but there really isn't. They may tell you this is their best offer, but without a lawyer behind you, you have no way to know that - and it probably isn't. They will tell you half truths, like what they said about how you will have to share in the costs, but they will not tell you the whole truth because you would not want to sell to them or if you still did want to sell, you would ask for a lot more money.

Bottom line is, your mineral rights are very valuable even if they seem like a small interest (1/16th). Do not be hasty in giving them away.

As for back royalties, there is a website to look up unclaimed property held by the state. If the old well was giving out royalties and the lease was reassigned to someone else, but the leasing company never got a change of address or affidavit stating the new ownership, then they would have sent the royalty payments to the state to hold. You can go there and type in some of the names you have and see what comes up (make sure to scroll down after hitting search because it looks like it didn't do anything but the list is below and you can page through it). Here is the website: http://www.wvsto.com/dept/UP/Pages/ClaimInformation.aspx

Also there are a few places to research specific wells and their productivity. Here is one: https://apps.dep.wv.gov/oog/wellsearch_new.cfm You don't need to fill in all the fields, just one.

Here is an interactive well map: http://tagis.dep.wv.gov/fogm/ that will give you info like the types of wells, locations, and production history.

Keep asking questions and there are lots of people here who are happy to help.

Stephanie

4

I second Stephanie's opinion. We were first contacted last April. After many hours of research and reading, we ended up hiring a WV attorney to represent us (my siblings and I reside in California) and are currently concluding our negotiations with Antero's landman through this attorney. We've more than recouped our costs just in the inconvenience fee Antero will be paying us. He is an attorney that posts often in this forum (Kyle Nuttall). I will be posting updates as the information is available to the discussion I started that's called "Heirs to Mineral Rights in Doddridge - West Union District." Good luck, and bottom line, do not sell your mineral rights!

5

Stephanie, I also am new to this, but I have read that there is a big difference between mineral interest and "working interest." Your best bet, in my opinion, is to seek out information from a lawyer who handles oil and gas rights and perhaps do some research online about working interest. There is such a lawyer on here at times, his name is Kyle Nuttall. Check out the Doddridge county thread and you should be able to locate his info there!

6

I agree with Robin and Jim Greaver that Kyle Nuttall is a very good attorney for your situation.

Working interests are indeed different from royalty interests. My aunt owned a couple of these on wells where our family owns royalties, and sister and I have inherited these. I keep wondering about possible problems but so far none.

Someone on another thread posted this online website for Doddridge County records

http://129.71.205.241/

I recommend that you try to look up anything you can find with your parents' names in the website, and see what you can find out about assignments of the lease over the years. The more background information you have the better (and cheaper) your time with the attorney will be. He agrees with this (he told me so).

Let us know if we can help some more with this background kind of things.

7

Thank you to everyone for the information. I did do a search and didn't see anything that is owed to them. I will look at more research in regards to the working interest issue also. Obviously I have no experience in this and when I look at the assignment of lease my parents did back in 1968 it is very unclear to me if it is a working interest like Antero says or what it is. I agree that an attorney is probably necessary, my hesitation has been making decisions for my mother and siblings, and if they turn out to be the wrong decision that costs them money, well of course than you feel terrible. On the other hand I am the only one making any effort, so I guess that is the chance you take.

Thanks again and as I research through some of these websites I am sure I will have more questions!

8

Susan, just curious, my father from Minnesota also has a 1/16 royalty interest ownership he signed in 1968. Wondering if your mom could possibly be part of the same lease? Our lease is in Grant district, Doddridge County. Total of 54 acres.

9

Joni,

My father's says land on the waters of Morgan's Run, in Grant District, Doddridge County. The acreage is only 35. Might not be the same parcel but is probably close in proximity. Did your father do this thru a gentleman by the name of James Hershberger? I know 2 of my father's friends were part of the 16, but both are deceased and neither one had children.

10

Susan, yes it was by James Hershberger. It’s listed in Lease Book No 92, Page 550, described land on the waters of Morgan’s Run, in Grant District. My dad apparently bought into this with some friends from IBM and some other folks. If it’s not the same land, it must be close to it. We have not signed a lease with Antero yet. Working on it but trying to to it ourselves, without paying an attorney.

11

Ours is in Lease Book No. 92, page 532, so yes they must be close. All we have received from Antero is an offer to purchase, and I haven't contacted them since that time. I hope things are moving in a positive direction for you.

12

Somebody found this website for deeds and leases in Doddridge County

http://129.71.205.241/

I did a search on James Hershberger, just to try it out, and there are a lot of entries. You might find your leases.

13

Joni, I received a call from Antero last week. I told him that we are not interested in the offer from them to sell my mothers interest, but would do a lease. He said we already have a lease and that he would then take it to a judge, and added that she has a working interest not mineral, like we don't have a choice. I didn't react and just told him that I would be in touch. He then said if it is more money that you would like we can work something out. It sounds like we have a similar situation and you had commented that you are working on a lease with Antero. Wondering if the "working interest" has come up in your discussions.

Thanks,

Susan

14

Susan Busker, because it seemed like an unusual situation, I went to that link I posted above and searched the pertinent names, pages, etc. I found that there is a lease in book 92 page 433 from Mr. Holden to James Scott. This was assigned to James Hershberger at book 92 page 532. There were many assignments involving Mr. Hershberger and Mr. Scott. The most recent I found was in book 320 page 422 (the 5th page of this document) where the trusts for Mr. Scott's children (from him to the trusts book 137 pages 78 and 80) was assigned to EMAX . I didn't go beyond this. Probably there is some assignment to Antero of this. As I read it (I am not a lawyer but have done a lot of searching of deeds and leases for my own interests in another county) the original lease was a "regular" lease from Mr. and Mrs. Holden to James Scott. The other documents are assignments of different amounts of working interests in this lease. Antero has done inadequate title work, it seems. You (your mother) would have the right to see their version of how they think she has only a working interest in this, if she is related to Mr. Holden.

However there are some other working interest owners that I couldn't find assignments for, so she might be related to one or another of them. Worth a look in the records link.

15

Susan, more information. The lease assignments were all in book 92 at pages 534, 536, and 540 for the (each) 1/16 working interest in that lease from book 92 page 433. There were more, but these were the three who were not in the index for having assigned their interests to another party at a later date. All from 1968.

16

Yes you are right, my mom and dad's 1/16th interest is in book no 92, page 536, Donald and Janet Burns. I just don't understand where to go from here. Antero is threatening to have a judge make us sell?

17

Ok at least that is cleared up. Working Interests get complicated. I inherited 2 small working interests from my aunt in 2 wells. I just get paid a little every month or so. But I understand that when the well needs to be plugged it is the responsibility of the working interest owner to pay his/her share.
I would think that a working interest in a lease has more responsibility that in a well (mine were from the 1960s).

And about any money you would have been owed on this, did they tell you if there are any producing wells on this lease? Or any other information like that?

It might not be a bad idea to ask in the General Forum for the Mineral Rights Forum about a working interest in a lease. But I think the best advise is to ask an attorney. I use Kyle Nuttall. Here is his website:

http://www.nuttalllegal.com/

Even if you use someone else, read his website. A lot of information.

Antero threatens a lot of things. I am not sure how much they do but it is scary.

I will be looking forward to finding out more about the pros and cons of being a working interest owner.

18

Thanks I am trying to get a hold of Kyle. I will give an update as to what I find out.

19

Yes, yours is an interesting situation.

20



Susan Busker said:

Thanks I am trying to get a hold of Kyle. I will give an update as to what I find out.