Offer for Mineral Rights.. Value?

New Mexico Mineral Rights Eddy County, NM
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Hi,

I’m new to the forum and have a question. My wife has been contacted about selling mineral rights that she was unaware that she had inherited.

What’s an easy way to get a ballpark estimate on the value of those rights?

I think I’ve got the legal description right… It’s 160 acres

Township 19 South. Range 26 East NMPM Section 14; S/2SW/4 Section 23: N/2NW/4

Thanks,

Mudbug

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An easy way? Probably doesn’t exist. Short of “the value is whatever somebody will pay you”.

Would need to know how much of the 160 acres she owns. Its probably not 100%.

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As I understand… There are 9 grandchildren involved. So I guess she has 1/9 interest. Her offer is $500 an acre…(80k). putting total at 720k for all.

This is all new to us and we are still trying to learn about it.

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Well if she owns 1/9th of the 160 acres (i.e. 17.8acres) and they are offering $500 an acre. Then the TOTAL for all descendants is $80k and here share is $8.9k. Right? If they are offering $80k for her share then I’m not sure what is going on.

I see the Potts descendants etc in the courthouse records. I’d guess she has 17.8 net acres. Could be wrong.

Its worth more than $500 an acre. At first guess. Maybe not a ton more. But 2-3 times more. Probably. Its a bit South of the Yeso trend drilling and north of the Bone Spring drilling so its sort of in No Mans Land at first glance.

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Purchase offers are always described in gross acres in the tract that are owned. Frequently over the years the ownership is subdivided repeatedly among descendants, as well as by sales of a fractional interest. So it is possible that you wife has inherited 1/9 of some fractional interest in the 160 acres, rather than 1/9 of 160. Ask the landman how many net acres he shows she owns. You should also research and verify whether this is correct net acreage and that this is the only tract involved or whether the her grandmother might own minerals in other tracts. If you sell, the deed should only list the tract and not include all encompassing language such as “and everything else owned in the county.” Take your time to figure this out.

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I believe the rights were initially in the name, Charles Rogers or Robert (Bob) Rogers.

Obviously, this will require some time for research to determine the (fractional) ownership.

Thanks for your responses,

Mudbug

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Found lots of unclaimed property for Robert L. Rogers on the New Mexico website… So, I’m guessing the mineral rights were (are) in that name.

Mudbug

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I have found info about a well on Sec 14 (30-015-34605) involved in a Commingling Order back in June 2006.

The order refers to Lake Wood “14” Lease and Lake Wood “15” Lease Still searching for info about Leases

Also found that the well was Plugged and Abandoned in 2012

Still digging :slight_smile:

Mudbug

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Mudbug, I’m a 1/12 owner of lands like yours and when they come to drill they pay good money while they drill, and then the next company will come after the first and drill again. I get offers to sell my minerals all the time, and I had my attorney read their contract. The saying goes the Big Print sayeth and the small print takes it away. So like me, only 139 acres are exposed, but more in undercover in Trust. I’ve been drawing good income from mine. Since you just got yours, I would suggest you not sell it unless you have to. Wait and see the good it brings you. I’m 69 now and it has been good to my Mother before me and Me and my Sister since 1979. Sincerely, Chris Wilson

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Thanks Chris,

We are still researching to determine the exact amount of mineral rights involved. We have reason to believe there may be other locations. May have to look into a landman to discover all his holdings. Then, the process of getting the deeds properly transferred would be the next challenge.

Mudbug

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Hi my name is Mike, and I am dealing with the same issue, I have mineral rights from inheritance, the mineral rights was purchased in the 1800 and located in West Virginia! I hav 2 locations and supposedly are 15 acres each or something not really sure, drilling has not yet begun so I haven’t got a decision order yet ! I have only signed the lease agreement. I signed with HG energy I I Appalachia LLC. Wondering if anyone knows about this company any information would be great, thank you .

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