I am trying to get in touch with Martha Barnes - had her address 6-10 years ago, but new computer, emails didn’t transfer from old Outlook, etc. I’m getting offers on Garvin County Section 21 4N 4W. I know new wells have been approved, but I need advice and help. Thanks in advance. David Dutton
Hi David, Casillas has quite at least three-four horizontal wells pending on 21. That is why you are getting offers. Sitting under the Purdy hard Sand unit. I am nearby and not selling mine. Offers come often right before the drill bit. They are hoping you do not know about the pending wells. Most offers I have received have only been for current production and not the pending future production as that is where they intend to make a profit. I would rather have that profit.
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Thanks for the info and the map. I was aware of the Casillas drilling, and know what these companies usually try to do. But when the offer is $100K more than my sis-in-law got 6 years ago, it’s intriguing, especially when there is a potential capital gains tax in WA looming. I have been intending to sit on Rev. Cully’s purchase (from the early days of the last century) for my daughters and their families, but 300K is also interesting. Thanks again !
Hello again Martha, I have been sitting on the proverbial fence since my last query, not knowing whom to contact next. The original offer from XXX Co. was for $8k/acre, then it was upped to $8.5/acre in S.21 4N 4W, which for 37.5 acres is a more than modest amount. I have looked on the OK records, trying to see if :
- the company is reputable (there are a lot of postings of purchases by them, some even from owners in Edmonds, OK). or
- If I need to hire a reputable lawyer or appraiser, and who might that be. I would need to establish a basis dating back to 1992. The offer/contract has a non-disclosure sentence which I will have to straighten out, since the way I read it would prohibit discussing this with my wife (WA is a community property state), or with any financial advisors. Of course any of the locals know nothing beyond mineral rights in N. ID (lead and silver). One suggestion was to contact the assessor in Garvin County. I know you want to retain your interests down there, Presently I am receiving ca. $600/month from Casillas, Red River/(Vitol??) and Daylight. Any further advice on #2 above? Thanks !
The directories tab above has several appraisers. You can also find appraisers through their national association.
You will have to do your own due diligence on any buyer. However, I have a few steps I would go through.
-I would look them up on Bizapedia and see how long they have been in business. No problem in being a new company, but I am looking for the owners to see if they have experience and their BBB rating.
-I would look up the owners on LinkedIn or other sites to see what their training and background is.
-I would look up their website. Are they willing to say who they are? Who is funding them? What do they do? etc. If they are not willing to reveal who they are and how they are funded, then I will not deal with them.
-I would ask if they are willing to put 10 percent of the purchase price in an escrow account as a good faith measure. What third party is holding that escrow for them? Attorney? Accountant? I want a PSA (Purchase Sale Agreement) in writing and an agreement that the remainder of the payment will either be paid to the escrow account and my third party who is holding my lease will turn it over when the check clears or it will go to my direct direct deposit account before my third party will be handing over the lease or deed. NEVER hand over a signed deed without getting paid. If anyone wants that, walk away!
-I would try to get at least three offers that fit that criteria and then take the best.
Also, you do not have to keep all or sell all. You can sell a portion and keep a portion. Some money now, some in the future. You will need your basis back to when you acquired them as the IRS is very interested in that number for capital gains purposes.
David, Beware of a bait and switch. Most offers I got a couple of years ago (S28) were based on 3/16th royalty even though IMO they had to know this area is HBP and 1/8th royalty. Lately the offers have not mentioned the royalty percent at all but my guess is that they will try to cut the amount and act all innocent. Of course that isn’t to say you can’t bargain back to the $8.5k. Good luck.
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