Tried to Send PM to NMOilboy and Rick5 but was informed I can’t. I posted a while back about the 200 acres of mineral NPRI I have as willed interest in Lea Co., NM, 24S 34E NE/4, NE/4 SE/4 from my deceased Aunt. Have a 4th offer for 50K plus they will pay all legal fees (transfers x 3). I see Peregrine 708-710 to the north and Frightened Turtle to the south. Is this a fair offer and if not, what would be a good ball park figure? Where can I find out if there are any royalties in suspense? As far as I know, there have not been any lease agreements brought forward and I don’t know of any past ones but we didn’t know about these rights until recently. These wells seem to be horizontal but I have no idea what direction they are going or if they are producing/plan to be producers. Can I trouble someone for a well map similar to this since I don’t have a paid subscription? I really appreciate any insights and info y’all may have, thanks!
I haven’t done anything in NM in a while so I am out of touch on what constitutes a good offer. But NM does have maps online and open to the public (no subscription) at this link. http://www.emnrd.state.nm.us/OCD/ocdgis.html
Hi Kirch, yes, I use that one but I haven’t found a way to tell which direction the wells are headed. Then again, I could be missing something in the layers. I appreciate it!
Hi PTCarr…I wouldn’t sell. If you are being offered 50K then be aware the company purchasing will recoup their money plus. I’ll look at the NM site and see if their is any new information on the wells being drilled.
@PTCarr Do you have any more information that you can share to get to a decimal interest? If we have that we can put a rough total value on it. You have two active EOG permits running south through your section (APIs are 3002548412 & 3002548411)
@PTCarr 0.00097656 of 200 acres? I’m going to see if I can pull your lease
@Lee_Ann Thank you Ma’am, that’s the only info I have besides location of rights and my Aunt’s name. I really appreciate it. I was going to call the county and inquire about any possible suspense information. None of us knew anything about this until we were contacted. That has been at least 15 years since she passed.
Hey. On the surface it looks like you have 1.56nra (net royalty acres), if one takes the NPRI decimal you provided over the 200 acre lease.
(200 x .000977 x 8)
Somebody should be offering you something in the $15k/nra range fin 24S34E Sec 34. So $50k doesn’t make much sense to me. Hard to say if that is fair because on the surface that is insanely fair, which will not be the case. Ask whoever offered you $50k what they show you owning in terms of NRA.
EOG sent 6 applications for permits to the BLM in July 20, as someone noted above they have two of those approved. You’d only care about the ones in the E/2 of Sec 34, which is one of the two approved ones and then two others that haven’t been approved yet. To stay ahead of the Biden admin EOG has applied for a gazillion permits in NM so its hard to tell if that means that this is going to get drilled any time soon. If EOG drills a bunch of wells here, then it’s worth a lot more than $15k/nra. If they don’t, well then it’s not worth much. $15k is a decent risk-adjusted middle ground IMO. You need more than 3 wells drilled in the E/2 of Sec 34 to make it worth more than $15k/nra.
PT, I have personally run title a few years ago on NE/4, NE/4SE/4, Sec 34 T24S-R34 200 gross acre fee tract a few years ago. There were no NPRI burdens on any of the fee minerals in that tract at that time.
A NPRI is when a mineral owner carves out a portion of his/her royalty by conveying it to a 3rd party. Sometimes it may stay the same and sometimes it might vary depending on the royalty rate that the mineral owner leased for. A NPRI owner only comes into the picture after a mineral owner has leased since he/she does not have any right to execute a lease or get a portion of the bonus money for the lease.
It is more likely that your Aunt had a mineral interest in this tract. As of 3 years ago, all mineral owners in this tract were under a primary term lease (but it could be quite likely that some of those terms have expired or otherwise not extended if there was an extension option).
It sounds like the mineral buyer is wording this interest wrong, or that the NPRI burden was created recently within the past 3 years or so. Also, but more unlikely is that your Aunt had an ORRI carve out on the HBP Federal lease that cover 240 acres in the W/2 of this section, and the mineral buyers have the wrong legal. I did not research the Federal lease, so I would not have any information, however, the 2 private tracts in the W/2 as well as the 40 acre SE/4 SE/4 private tract did not have any NPRI burdens.
There is an old NPRI out there that hits some of the fee tracts in T24S-R34E as well as T24S-R35E, but this Section 34 is not one of them.
If it turns out your Aunt owned minerals in the 200 ac tract in Sec 34, its better for you anyway (see above), but you should be aware of this when dealing with the buyers.
@NMoilboy and @EastTXPermian - thank you both for the replies, very good info and gives me some more to look into. I still would like to see if @Lee_Ann may be able to provide any other input in addition. There’s a lot to consider here and I sincerely appreciate the inputs! - PTC
I finally got to see the offer letter (which my relative already signed before I could advise on a change). The letter shows 5 nra, not sure how that number is reached. All of this was done back in Oct, now I received a bunch of transfers to sign but there is information there that I did not have. I’m being told the “probates” have been paid ($10K) but how can that be when I have unsigned legal docs in front of me? In the offer letter, there were protections for “them”, but no back outs for us. Again, I never saw these before my relative signed, otherwise I would have stopped right then. Are we bound to that to absolutely proceed with the sale? This is getting my blood boiling a bit…
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