Thanks Virginia, Do you think a few hundred thousand over 10 years is the average for 20 Acres in Logan County? I couldn’t find Logan City. Is there an unincorporated place in Logan County called Logan City?
Gordon,
I don’t live in Oklahoma, so I haven’t ever hear of Logan City.
I would say that over 10 years it would be safe to say you should get a few thousand. Let’s say the well come in good and avg 100 bbd. After the oil company gets their share, you would get 18.75 BBD for 640 A, on 20 a that would be about 1/2 barrel per day or about $1500 per month or less after taxes and OK state income tax. After a couple years, divide by 2 and that is about what it may make. Some do better, so do less. I haven’t seen very many millionaires on 20 A mineral, but it’s a nice coffee fund.
Chris,
Everyone tell me if I’m wrong.
if there is ever a well developed for the section, the 40 acres could bring in more than $10,000 a month for year before dropping off. So maybe a Million dollars over 20 years. It may never happen, but the reason anyone will offer a few thousand an acre for mineral rights is because they think or know someone is going to drill soon, and expect to make a hugh profit.
Thank you SO much Martha, Gordon, Ronald & Virginia! Your comments and ideas are valued & appreciated greatly. We have lots to do & tons to learn!
Oh dear! My Mom is in longterm care and running out of money…so she is allowed to sell these mineral rights per the Elder Atty we consulted with. Thusly, I need to pay her fair market value. Her Sister shares the rights and is keeping her portion. We are still in shock…didn’t know these existed until a small oil company contacted them to offer a lease…all fell through but we had no idea the rights existed.
Gordon,
Their are a few good wells that will bring in over $10,000 for 40 acres per month. So, why would anyone want to buy your minerals. Usually an investor figures a pay out with in the first 2 to 3 years. When they get a good well, they may get it back in a few months. But, remember the original mineral owner got all his money at one time and the investor was hoping to get a good well. Usually when you start seeing lots of good prices for minerals, they are hitting some good wells near by and getting ready to drill in your area. It’s sad for me to see some of the investor laugh about how cheap they got the minerals off a farmer and how much they are making now. Also, investor use buy mineral to decrease the amount of taxes they pay per year.
Chris M, general opinion is not to sell, and I would never sell mine at any price. But it is nice that you can keep it in the family, and remember, when your well(s) come in and your poor lil mo is facing dire straights, remember how she changed your didees and fed you Heinz split pea soup when you were 1-3 years old, and forget how much she charges you for the acerage. 
Chris,
There are several ways to sell the minerals. You can get fair market value by having 3 people that are in the real estate, auction & banking business give you an estimate. Some time this will work.
But, since she is already in a long term care, you would probably need to get a certificate appraisal to do it. The Elder atty should have giving you information on how to do this.
Then, if she doesn’t need all the money at this time, you may want to set up a pay out schedule for you and your sister with right of survivorship in case she passes before it’s paid out. You need to talk with an attorney in your state on all of this.
S
Gordon,
I don’t think the offer from oil companies would stand up for Medicaid auditor. Also, you have to be careful how you get your mother name off things once she is in a home. It should have been done 5 years prior to going into a home if you waned to keep anything.
My Mom has been in & out of rehab and used up all her medicare days so we moved her into longterm care. That’s what Diabetes does to you! We just learned of the mineral rights last Fall…my Grandfather bought them in the 60’s for his children…but never told anyone. Thusly the surprise! Appreciate all the help!
Gordon and Chris, OK used to have certified mineral appraisers, but I haven’t heard of any since horizontal drilling started in OK. NARO used to have a list of OK mineral appraisers and NARO may be able to help you find someone who can help. I’ve never heard of Arbuckle Mineral Company, but there are a lot of private investment LLC’s that are leasing on speculation right now. Double Eagle is one that has offered to lease my Payne minerals and one of the owners is a former Devon executive.
It is always sad when people get old and can’t take care of there needs. I was very thankful my parents had the money to pay for some care and stay at home till my father passed away. Martha is right, it can easily cost over $4000 for the home and a lot more to keep them in their own home.
Please be careful on getting your mineral appraised as if they are appraised to low and she goes under Medicaid to help pay for the home. You may be liable for paying for her care till they are sure the minerals sold for a fair market value.
Boy, this is a rough crowd. Mom has diabetic wounds on her feet but we have great Docs…she can’t walk…thusly the need for longterm care. It is a very nice community. She wants to sell me the mineral rights prior to running out of $ and going on Medicaid. My Grandfather would want to keep them in the Family. She lives in OK (by choice, where she grew up) and I am in AZ with my Husband & kids. Her cost each month for a single room is around $8,000 plus meds co-pay. She will probably outlive all of us. If we ever gain any profits they will be shared! Thank you again for all the help & inspiration!
Chris, you need to find out specific details before making any moves & Martha may be right to contact the NARO first . If would like, I’ll be more than happy to help you find out how to get a Cert. Appraisal. It shouldn’t take but a couple of calls to put you on the right path! Also, I think you mean Logan Co. I don’t think there’s a Logan City!! One more thing, don’t take anything here personal here. I think some have gotten a little too close to flaring off the gas to their wells, like Ron, & inhaled a little to much! TeeHee Really, some may act bad, but they’re some of the nicest, most knowledge people you’ll find in this business!! Hang in there for both you & your mom, we’re all in this together to help each other!! Email me if you’d like: [email protected]
This can be a real blessing or just a pain, right now. If a well is developed you may be able to upgrade her care.
I get letters from several companies wanting to buy. If you ask each for an offer, they may give you offers you can use for valuation. As long as there are no Lease offers the value is only based on speculation, so it should be low. I will make send a list later, but Arbuckle Mineral Company is one. Does anyone have negatives about Arbuckle?
Gordon,
First Medicare doesn’t pay for any ones care other than the hospitals and a little rehab. You are thinking of Medicaid. And you can’t own much to get that. But, I think after you are out of the hospital and rehab, 30 days you can re-qualify, not sure as that law is always changing.
I think you were asking if anyone heard of Arbuckle Mineral Company.
I think it’s a fairly new company that buys minerals and G. Johnson is the CEO. If I have the right person, he used to be a land man for Chesapeake. He was with some other company in DFW area, can’t remember the company name.
Chris, Nursing homes can use funds in your mom’s checking or savings accounts, at their discretion, for her care, so Virginia’s right about getting an attorney to help you protect the money she receives from the mineral sale. Private nursing facilities can be an upgrade, but they are very expensive and sometimes cost $4000 + per month.
Ron, My 90 year old father-in-law had to go to the nursing home when he became unable to walk and think clearly, because we did not have the money to hire 24 hour nurses and totally equip his home so we could care for him. However, I brought my dad to live with us when he became unable to care for himself. Both ways it was hard for everyone.
Whoops! Sorry Kenny for posting my email! On my iPhone & I couldn’t find the edit button.
Mr. Wilson, I will agree with you on gold. Really, gold should be described as noble (non-corroding) metal used in jewelry and sometimes useful in electronics, but it’s shiny and people like it and place too great a value on it in my opinion.
If it takes expert examination to tell the difference, what makes a diamond more valuable than a cubic zirconia, both are equally decorative.
I better get back on topic.
Mr. McKenzie did say estate value and annual income, so I presume he was writing about producing minerals.
and diabetes doesn’t put mothers in rest homes, children do.