I received an offer on My surface rights , it’s always exciting to receive an offer of some kind, Section 14 Block 45 PSL, Reeves County Texas. Do you have any idea of what a fair offer to purchase would be on 10 acres surface rights?
Vince Murdock
October 6 1939 i was 84 days old.That same day my grandad signed a form allowing a gas company to lay a pipeline across his 50 acresm, with no mention of width or pipe diameter,for 25 cents per rod.The reason I know this? A land man connected me about putting another pipe into that same ROW for an adjusted price of $4.5o per rod across the 9 acres I now own.I read the contract he had procured from the Webster Parish courthouse and it stated the contract was legal forever.We have came a jong way since then in our dealings with companies And that is still pursuing these goals of getting energy out of the ground and paying us an unreasonable sum for it.I was fortunate to acquire property in Reeves County for $200pera acre in 1998. Since that time I have recovered that amount numerous times and refused unreal offers to buy it. So thanks to all the companies paying us,and a forum such as this letting us compare notes and the free expert answers and advice. The INDUSTRY will recover! Cj
Glad the pipeline company is paying you that adjusted price to install the second line in Webster Parish. Sounds like they didn’t have to under the old agreement…which wasn’t unusual back then. But since they are working with you now this might also be the time to push for the old easement to be amended to legally defined the location and size of the ROW across your tract.
We own a small tract (57.820 ac) in T&P 55-7, Sec 8, A-3043 with frontage on CR 2903. Apache allowed their lease to lapse back in January. They did drill a well 1 mile to the east that is currently producing. Wondering if our property is in a “gap” area between economically productive zones. Maybe we should get a disposal permit, at least that is what my petroleum engineer friend says (I have worked doing regulatory work with the RRC for 50 years).
Wade,
We are across 225 from you. How do I privately contact you?
Dan
I have seen where you have offered to help mineral owners with confirming owners decimal. I have never received a division order but started receiving payments in July. Should I be concerned? Any help you can give will be greatly appreciated. Thank you. Wayne Mims Lots 5-8, Block 5, Section 271, Toyah Valley Grape & Alfalfa Co. Subdivision, Block 13, H&GN RR Survey, Reeves County, TX LEASE: Young 13-0-270-271C WELL#83H OXY came up with 00107509 interest
Contact the operator at the address listed on the check and ask for a copy. If you inherited, then they may be running off an old one. Generally, in Texas you need to have a DO in order to be paid. Might be different circumstances here.
I have an interest in this same lease. OXY started paying me before they sent me a division order. In fact, I didn’t get a division order until I asked for one. My division order only had two wells, but three wells cross my tract. I’m getting paid for the one one the left and the one on the right, but not the one in the center. I’ve sent OXY emails about this and even a certified letter but have received no response.
81H started producing in Nov 21. 82H started producing in Aug 21. 11H started producing in Dec 21.
Its possible that 11H it is the last one to be set up, and Division order is coming. Tracts in the wells aren’t all the same and the 11H permit mentioned unleased minerals so some chance the DO is more complicated and thus delayed. Certainly the N2 of the NW4 should have interest in all of the wells.
I’d assume the odds that it will get straightened out in your favor whether you call or not are high (since they know you own there as evidenced by other 2 wells). But I’d keep trying the Oxy DO person/channels.
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You Sir are worth your weight in gold !!
Thank you for your response. I was also wanting to know if you could help me confirm my owners decimal. Thank you. Wayne Mims Lots 5-8, Block 5, Section 271, Toyah Valley Grape & Alfalfa Co. Subdivision, Block 13, H&GN RR Survey, Reeves County, TX LEASE: Young 13-0-270-271C WELL#83H OXY came up with 00107509 interest
I see you own mineral rights near me. (Wayne Mims Lots 5-8, Block 5, Section 271, Toyah Valley Grape & Alfalfa Co. Subdivision, Block 13, H&GN RR Survey, Reeves County, TX LEASE: Young 13-0-270-271C WELL#83H OXY) I got my appraisal last week for the tax year 2021. My 4 lots were appraised at $38,651. Is this amount anywhere near the appraisal of your lots? Thanks for any info you can provide. Wayne Mims
Hey Wayne,
Maybe misunderstanding, I don’t own anything in Young Unit in Block 13 of Reeves Cty. The new Young 270-271 wells, particularly #83H, are awesome so I’d guess they probably have a fairly high tax value.
The nice thing is that everybody in the wells is in it (the county taxes) together as it’s just your decimal times the value of the overall lease, and if things are out of whack it’s in the best interests of the biggest owner (i.e. Oxy) to protest, and your value will be moved to whatever (overall) value Oxy can convince the county. I’m sure Oxy has outside folks hired to look at all of their county taxes and protest on their behalf where warranted. If Oxy doesn’t protest, well then the number is probably about right.
Good luck.
The miss-use of division orders led to the Texas Legislature’s passage of the division order statute. Like most legislation, the statute is a compromise. It provides that division orders cannot be used to modify leases, and it gives the companies the right to require execution of a division order, as long as it does not seek to modify the lease. The statute provides that “Any provision of a division order … which is in contradiction with any provision of an oil and gas lease is invalid to the extent of the contradiction.” But it also provides that “A division order may be used to clarify royalty entitlement terms in the oil and gas lease.” One lease modification to watch out for might be how produced oil and gas are valued with potential deductions.
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MIPA units are uncommon as there is a long process to comply with the statutory requirements. It is an expensive process. Colgate has gone through this process and gotten RRC hearings and approvals for MIPA units which underlie City of Pecos in Reeves County. It was the only way to be able to produce under all the small city lots. Is this where your lot is located? It is not likely that you will be able to find another company to lease where the well has already been drilled and the new lessee may not be able to now opt-in as an non-operating working interest. If you do not lease, then you will be an unleased mineral owner. For the Colgate MIPA wells, the RRC has issued orders for unleased owners to be pooled as 1/4 royalty interest and 3/4 working interest. The working interest is subject to a 50% charge for risk to be paid out of the 3/4, meaning it is an additional charge before payout. How large is your tract and how many net mineral acres do you own? If you provide more information about the well, operator, your minerals and the offer details, then you can get more guidance. If you have a tiny net mineral interest in the unit, then you will not receive large royalty checks, but this is true of any unit.
TennisDaze – Is the 50% risk penalty based only on revenues or on net profit?
I received an unsolicited offer to buy the mineral rights I inherited, on a property in Reeves County. Until I received this offer, I didn’t even know the rights were in my family. Apparently they’ve been sitting there for about a century.
The letter states that the property is:
Tract 1: Section 21, Block 56, PSL, Reeves County, TX
Net Royalty Shares: 1.6667 Net royalty acres
It also states:
Minerals are leased with a 3/32 Lessor's royalty.
There’s lots I don’t understand about this letter. Here are some of my questions:
1 – the tract is only specified as a specific section. Does that mean that I own 1.66667 / <section 21’s acreage> of the mineral rights in all of Section 21?
2 – what does the 3/32 Lessor royalty mean? How does that relate to the 1.66667 royalty acres?
3 – according to mineralanswers.com there seems to be drilling in the section immediately to the north of Section 21, with horizontal wells that go into section 21. Is there a place I can look to find out if there have been royalties paid for gas extracted from wells that enter Section 21? Relatedly, is there a site or some place I can find out what resources have been extracted from Section 21?
I’m very new to this, since I just learned about these mineral rights when someone tracked down the inheritance chain (it went from my grandfather’s sister’s husband’s mother down to me, and none of those people have been alive since 1970), so any guidance would be appreciated.
Thanks in advance!
Actually, while waiting for the post to get approved, I learned a few things:
There are four horizontal wells that appear to pass through the section for which I hold mineral rights. The wells are operated by EOG Resources.
So, my real question at this point is how to find out what the royalty agreement for those wells is, and where the royalties are now. I’m guessing that my next step is to call EOG Resources, but if there are public records that I can search to learn where the royalties are, that would be great to learn.
Lease agreements (without bonus $$), Easements, and such are recorded in the County courthouse. I doubt they are searchable online so a local attorney or landman could help.
the person who responds at EOG is always very helpful you will have to leave your phone number and they will normally get back within 5 business days call 833-430-2550
Ask EOG for a copy of the lease that holds the acreage. Ask for a copy of the Division Order that the previous owner signed. (You may or may not get them). Ask for what title requirements EOG needs to get into pay status. Also look up an unclaimed royalties on the Treasurer’s office of the State of Texas
The Lessor royalty is pretty low, so that is a really old lease or it is an old override. The acreages are independent.
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