Oil & gas discussion group for those interested in Montgomery County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
I'm not sure what I inherited as I have no legal description from the law firm hired in Austin. Was told TX does not grant deeds as in other states. All I have is Devon Energy's description and the name of the survey. Sure would like to know how to obtain detailed information. Any help is appreciated.
I have purchased 36 acres on 105 9 miles west of Cleveland and have 100% mineral rights and would like to find companies doing exploration in the area and also I contacted the Texas Railroad Commission and they need to know what the oilfield name is in this area. Any help would be appreciated. Contact Wesley Holley 713-594-7447
My 97 year old mother in law asked for my help. She received a letter offering her a check for her mineral and royalty rights to property in Montgomery County. How can I determine if it is a reasonable offer or if she should wait for a better offer? Any help would be greatly appreciated!
Jim Sibley
Dear Mr. Sibley,
There are some bottom feeders in the industry that will certainly prey on 97 year old women. What they do is have superior knowledge or strategic intelligence and sweep through an area trying to pick up bits and pieces. Having said that, there are certainly reasons for a 97 year old to try to commercialize an asset. That is an individual decision for each person based on lifestyle, quality of life, financial condition, etc.
Thanks, Mr. Cotten! I appreciate your candor. I think she has probably decided to go ahead and liquidate this claim.
Jim,
Do not sell minerals based on a bank draft. Exchange a deed for a cashier’s check, only.
Thanks, Wade, I did figure that one out. I understand the bank draft can be expensive.
Dear Mr. Sibley
I can make a couple of suggestions from a strategic point of view. First, sell on a net acre basis, rather than "all of Grantor's right title and interest in Montgomery County, Texas" Have them nail down what they are wanting to buy.
Make the conveyance a quitcliam deed, along with a disclaimer of warranty -- you make them buy the minerals and take their chances.
Make sure that the offering price is what you are looking for. For example, what would appear to be a check is really a bank draft, which gives them time to perfect title. Many, many times, the offer is based on 100% ownership, and if the mother in law only owns a 1/4th interest, the offer gets cut by 75%.
There is no greater expression of capitalism than the buying and selling of mineral rights. You might consider testing the waters by contacting known mineral buyers -- including companies that are leasing in the area.
You might also consider a term mineral deed, so that if nothing happens in XX years, the minerals come back to her or her heirs.
Finally, you might consider selling a portion of the minerals so that if something exciting happens, you still have a dog in the fight.
Food for thought items only.
Dear Buddy,
Wow, great information! Thanks! This is exactly the kind of input I was looking for. I appreciate it more than I can say.
Jim
My wife has a small interest in four wells in Montague county. The wells have been producing oil and gas since 2010. She signed a lease back in 2009 with EOG resources. Then she signed a Division order in March of 2011. The problem is, EOG has never payed a penny to her as of yet. She has called and sent a heirship affidavit to EOG. They are just stalling on paying. There is money in the account but they claim that it's in suspense. This seems to be EOG MO on stalling payment.
I would like to know if anyone has had the same problem with them.
Thanks
Richard
The following is a sponsored (paid) promotional notice:
If you own minerals in Texas or New Mexico, consider attending the NARO – Texas convention in San Antonio July 18-20, 2018. They have a great agenda, good speakers, and the cost is reasonable. This year also includes a special session for New Mexico mineral owners. The current agenda draft is attached, and a link to their signup and information page is http://www.naro-us.org/event-2824234
Attachment: 2018-04-30%20-%20NARO-TX%20Convention%20Agenda%20%28Hyatt%29%20invite.pdf