Hello All, I just joined and hope to avail myself of you folks’ kindly shared knowledge. A fellow from Alamo Endeavors contacted me recently wanting to buy what I didn’t even know I owned, which he said is mineral rights to “Tract 1: Section 31, Block 32, Township 3 North, T&P RR Co. Survey, Howard County, Texas”. First in his letter he offered $7,250 and then in a phone conversation and subsequent letter only $3,500 because he said there is some question on the title. This evidently would be an inheritance to me as sole beneficiary of my mother’s estate, but I guess she didn’t know about this either, these rights evidently coming from her mother’s estate (my materal grandmother) and grandmother having inherited same upon the death of one of her brothers, and it was split between the surviving siblings which there were three I believe. I am the only surviving person in this line that I know of. There was no mention of how many acres or whether they are being used for anything and I have very little or no idea of how to find out what I’d need to know to figure out a fair price. Using this http://www.earthpoint.us/TexasLandSurveySearchByDescription.aspx
I received this result:
which says it’s 653 acres but I have no clue what that might be relative to the “net acres” I see mentioned in posts here.
Oops I accidentally posted this before I was through :\ I am willing to do research, just need guidance, and will deeply appreciate any guidance and information you may kindly give. TIA.
P.S. Now that I read the original letter again, it said “This interest equates to a 0.1% interest in the subject property.” How would I find out whether or not this is correct?
I have found a map of activity in the area. Am I reading it right in that the green dots are the actual drilling spot and the lines going off from them with the horizontal well symbol at the end are where the oil was found. Is this correct? If so, do mineral rights for a specific location mean where the drilling is started or where the oil is found, in these horizontal cases? I’m SO ignorant about this stuff, the more I read the more questions I have.
You are correct, the green dots represent production, and the lines represent horizontal wells. However, it doesn’t mean that oil was only found where the lines are located – those lines depict the trajectory of the horizontal well. When a company decides to drill a horizontal well, they will pool the mineral interests encompassing the unit area designated for the horizontal well. If you decide to execute a lease, the lease must contain language as to how the production from a pooled unit will be distributed to you – it is a very important provision in oil and gas leases.
As to your earlier question on how to find out whether the interest the company believes you own is correct, you can simply ask them how they believe you acquired that interest. In my experience, companies are willing to give that information. Once you obtain that information, you can search that name in a number of online databases. You can also contract an independent landman to conduct the research for you.
