Hi, new here, and to all of this mineral/royalty rights stuff.
My sister and I were recently contacted by someone who want to purchase our royalty rights in Martin County. We did not know we had any because they were not found in probate when our father died many years ago. Consequently, we do not even know who owns the mineral rights and whether or not there as been drilling.
Here is what is on the royalty deed (if that is what it is called): Northwest quarter (NW/4) of Section 23, Block 36, Township-3-North, T&P Ry. Co. Survey, containing 170.5 acres, 2.5/170.5 of 1/8 interest.
Any suggestions how how to find out who owns this, its status, and what it would be worth?
Know that is a lot of question, but can anyone give us some direction? Thanks.
Rachelle,
We have a non participatory royalty in Martin county. The property was leased and drilled by Endeavor. Endeavor appears to me to have made no effort to locate us and at some point I became aware of past due property taxes which caused me to get the ball rolling.
I looked up Section 23 Block 36 and there is a well in the NW/4, drilled by Endeavor and now operated by GUIDON ENERGY MGMT SERVICES LLC
If I am right, the well came on line in 2012, does not appear to me to be knocking it out of the park, but these interests are worth a lot of money. Now you all appear to me to only have 2.4 Net mineral acres and if you are stuck with a 1/8 royalty, I believe you will then have 2.5 Net Royalty Acres.
I think you can possibly get $20-22K per NRA.
Here is what I would do. 1) go search Martin County appraisal district and do a property search under your father’s name and under your name. This will determine if the operator notified the taxing district of your interest. 2) go to the operators, Endeavor and other group that I typed above and ask if they are holding money in suspense under your fathers name or you and your sisters name. 3) go to the state of texas unclaimed property and search under the same to see if your funds have been remitted to the state.
Good Luck.
This is what the tax rolls show for the Ernestine well in the NW/4 of Sec 23, 36 T3N.
.002748 interest for a Donna Bradley. In a 170.5 acre unit. That would equate to 3.75NRA. So my first guess would be that your family has, in total, 2.5 mineral acres leased at 3/16. Assuming Donna Bradley represents your interest. Which would mean that the operator is crediting your family with ownership in this tract, you would just need to sort out the transfer from your father to legal heirs, get it filed in Martin records, and notify the operator. I’m just numbers side of O&G business, I’m sure a land person could give you clearer direction.
Also note that address unknown. Which likely means that historical revenue from this well is in suspense with Endeavor and Guidon. Its not much $, but its something.
Reasonable folks will disagree on price. I’d say that if you have 3.75NRA the total deal is worth about $50-55k, IMO. Guidon acreage with no HZ permits on it is not going to get top price. The math just won’t work if you don’t know when wells will be drilled. If it starts getting covered in permits, then it would go up to a higher price.
Cheers.
That’s all good counsel NMoilboy. I wouldn’t disagree with any of it.
Thank you. This is very helpful. Donna Bradley was my mother’s name. Only my father’s name was on the document we have (John William Bradley) but he died prior to my mother’s death.
How did you all find this information? I spent hours yesterday looking for how to find something like this. Thank you again.
Rachelle, users here have various resources at their disposal (some free, some paid subscriptions). It’ll be quite the endeavor to learn how to use everything, but it’s definitely possible with time and patience. Check out the Texas Railroad Commission site (and GIS map), it’s a great place to start.
I had access to mineral/tax rolls through Drillinginfo. Don’t have subscription access to Martin Cty court records, so that is limit on what I know. You could probably find a copy of your lease via something like CountyLandRecords or TexasFile for a sub $5 fee.
Fwiw, I would guess you have about $3k in suspense at Guidon/Endeavor from this well. So if you are selling, consider that in any negotiations if funds in suspense would go to the Buyer.
