My mother wants to sell a third of her mineral rights in Woods county Ok. to me. What forms or legal documents should we use and how do we file the sale of the rights? I have no experience in mineral rights but am willing to learn as much as possible.
Thanks for your help.
Don't sell to uniroyalties, they buy cheap and resales them to other for a higher price so I wouldn't look at or contact them.
Ray,
You can hire an attorney for going rate of $80 to $300 to do a deed or just save yourself the money and do it yourself using a mineral deed, you could use a quit claim deed but I'd use a mineral deed for many reasons. You say your mother is selling them to you, in the state of Oklahoma you need to accompany the deed to be recorded with an affidavit stating purchase price which doc fees will be calculated from at $1.50 per $1000. Woods County mineral are worth anywhere from $800 to $5000 or more per mineral acre depending on area and infill activity, at least that's what I've paid.
I reported the Uniroyalties ad, I hope they take it down soon.
Dear Mr. Johnson,
We are not the board police, but your only two posts managed to violate the boards terms of service,
A tasteful approach would be to remove your posts in their entirety or the reference to whatever company that is.
Best of fortune in your endeavors.
Go see G. Wade Caldwell and get this attorney and his law form to do it before you screw it up. Tell him attorney Duncan H. Adams sent you.
OIL AND GAS LAW
(EDITED - Use the PM system for contact info)
Dear Ray,
Woods County is currently an active area for oil and gas right now and for the near future. If you mother has some production from her minerals and is getting checks, you could be creating a healthy tax liability for her depending on her income and how she came to own the mineral rights. If the amount of money changing hands is large, and your mother also lives in CA, I suggest you buy an hour of a CA estate lawyer's time, (perhaps the one that did her will) voice your objectives and find out what you may be giving away needlessly . (I can give you a reference if you ask). If the amount of money is small or nothing, (Thanks Mom), a phone conversation with your accountant, or your mother's accountant if she lives out of CA, will help your family pocket most of the production income now or in the future. At any rate, a little professional help will be peanuts to tax liabilities if not done correctly. Once you decide how to best make the transfer, keep in mind that OK has some special transfer requirements just as CA has some special Notary requirements.
With several wells in OK myself, I think the state collects far too much tax from oil and gas as it is. Ask you mom if she was an ALVA GOLDBUG.
There is currently no production on her mineral rights so no income from oil as of now. We all live in California so the state really likes to take a bite from everyone. She has very limited income (social security) and the amount of money is not enough to cause her a problem(i think). Yes thanks Mom.
Sounds like I should get professional help on the transfer and the tax liabilities.
Thanks for the help,
I have no Idea what a ALVA GOLDBUG is!
Alva is a town in Woods County. My wife is from there and I always thought it funny the teams called themselves the Alva Goldbugs. Thought you might know. GLH
If there is no production at the time of transfer, there may be no proven Reserves and therefore no Fair Market Value. Medicaid sometimes questions lease bonus value as Fair Market Value. I think they are wrong to do so under Federal Agency guidelines.
ray turner said:
There is currently no production on her mineral rights so no income from oil as of now. We all live in California so the state really likes to take a bite from everyone. She has very limited income (social security) and the amount of money is not enough to cause her a problem(i think). Yes thanks Mom.
Sounds like I should get professional help on the transfer and the tax liabilities.
Thanks for the help,
I have no Idea what a ALVA GOLDBUG is!
Ray,
I live in Irvine, and when my aunt died, I went back to Oklahoma, Ardmore, and go the deed from her bank. I have since had the deed changed to our trust, using the mail, with the same attorney, who also filed with the county clerk in Ardmore.
Ardmore is a long way from Alva...except in the dictionary.
A mineral deed is the form to use to sell mineral rights. Over-conveyence is a serious problem so you need a lawyer to "do it". I would create a family partnership, LLC or other form to get it out of your mother's name if she potentially may have to go on assistance in a nursing facility as there are income limits.
I would be cautious about selling a mineral right. It is a hedge (you get the money up front.) but such rights can make money for the owner and their descendants for generations.
Yeah, I got a large sum offer on all my Colorado mineral right tracts that finally after 100 years of nothing happening then a lease with high hopes of Niobrara wells and I didn't sell any, they drilled some dry holes, now my descendants for generations get a worthless tract of mineral rights. If you want minerals as an investment, spread it out, different counties, different states, it is normally a fool who puts all their eggs in one basket.
My mom wants to sell to me to keep it in the family and to get a little spending money. She is not looking to sell to anyone else at this time. I just want to file the paperwork and do the transfer legaly.
R W , Are you talking about Uni-royalties that is in CO?
If so, This is my dealing with them. Some guy sold them my minerals in a section, except he didn't own any of my minerals. When I found out that Uni-royalties had it I call and told them they didn't have any rights on my minerals and they had put a cloud on my title and I wanted it release and clear up. They didn't think it was doing that, but they quickly sold it to another oil company in Houston, TX. No one would talk with me. So, I had to hire a good oil & Gas attorney to get it solved and it was costly. I would not have any dealing with this company as I feel they don't check what they buy or sell and could care less. They should be put in jail.
To the mother who wants to sell her minerals to her children. Remember, you need to have it appraised to be sure that the terms of the sale are legal. Otherwise, if you need to go into a rest home, they may come back on you. Have you considered gifting the minerals as that is a lot simpler and a lot less expense. I don't suggest you do any cut and paste document either. A good lawyer should be able to do this paper work for less than $200 or so.
Virginia, there was a blatant ad here, I don't know if it was the same Uni-royalties, so many companies in oil and gas pick similar names so that you can't tell the player without a scorecard. It looks as though forum administration cleaned it up.
I have contacted a lawyer in OK. who handles mineral rights and have sent him the information that he requested. I want to say thanks for the help given and will update as we progress.