Received (only) offer for $3000 nma and one quarter royalty; is anyone familiar with BPP Acquisitions LLC?
It is not listed under Taxable Entities at the Texas State Comptroller's Office Website. What address to they use?
4849 Greenville Ave, Dallas
Mr. Speir, my first inclination is that seems lower than what you could get. There could be a very legitimate reason, such as the mineral or leasehold title being hairy, or some other reason that would cause the other party to be reluctant to throw out big bucks. Sometimes we landmen are going to devalue something for land specific or title reasons. For example, I will not pay more if I don't have to for title that I have to piece together with affidavits of heirship, than title that is squeaky clean. Of course, I am not saying that this is your situation, only using as an example.
How many net acres are they saying you own?
I believe the lease depicts my “trickle down” to be 1.6666667 nma.
I not only totally understand your example but completely agree with it; I was thinking in that realm when I was first approached with the 5 affidavits. Establishing heirship was pretty cut and dried; not a big family on my side. I’ve followed suggestions to different sites to settle the question of proper ownership of said mineral rights but every time I get there I don’t seem to have enough information to get where I want to go or find out what I need to know. Any help would be appreciated.
4849 Greenville Ave in Dallas is just another building in Dallas. It does not impress me as a larger, legitimate company, just another small company or individual trying to pick up a small interest in your area or even just another Land Services Company contracted to work your area by an oil and gas company.
As to the Affidavits, you should have kept copies of them. They take months to compile and your receiving copies of them for free was a blessing.
As to title to (the history of) your interests, those records are in the County Clerk's Records and the County and District Court Clerks' Records. It can take weeks or even months to research all of the necessary records to compile what are called Title Run Sheets on each of the Mineral Tracts, which Attorneys use to prepare Title Opinions on. There isn't a website you can go to and push a few buttons for it.
Land, Mineral and Royalty Title research can be very, very expensive. The most cost effective way that I have ever witnessed for someone like yourself to obtain that sort of information is to add the attached clause or provision to your lease.
By adding this clause to your lease, you will receive thousands upon thousands upon thousands of dollars' worth of information regarding title to your interests for free.
135-RUNSHEETSTITLEOPINIONSCLAUSE.docx (11.4 KB)
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On second thought, if you only have 1.67 NMA, accepting the $3K an acre might not be a bad idea. You could maybe negotiate for $5K, but not $12K.
I still advise that you try and negotiate for the clauses I sent, but with only 1.67 NMA you don't really have the leverage that you might with a greater interest. If another Mineral Owner has a Continuous Development Clause in their lease, the company probably wouldn't mind allowing you one. If not, they will press hard against allowing you one.
You DO NOT want to end up an unleased interest.
Here are the Field Rules for the two formations listed in the Permit to Drill.
133-HOEFSTKWOLFCAMPFIELDRULES.pdf (260 KB) 134-WOLFBONETRENDAREAFIELDRULES.pdf (267 KB)Remember, everything is on the table in lease negotiations, or at least, is negotiable. Every negotiation is different and has different considerations, but as a general rule, you won't get what you don't ask for. I personally think it is a lot of fun though. Fingers crossed, I'm still waiting for someone to call me up to tell me I own minerals in one of the hottest plays!
I received no clauses, no access to clauses???
I attached the Run Sheet and Title Opinion Clause to my response from 20 Hours ago.
The other clauses and provisions I attached to one of your other message strings. It was actually a complete Addendum. I have reattached them both here.
Click on and download the pdfs below:
131-RUNSHEETSTITLEOPINIONSCLAUSE.docx (11.4 KB) 132-SAMPLEADDENDUM.doc (50 KB)I spent 45 years in the construction industry and I do understand “negotiate” and I also understand you don’t accept the first offer, that is unless it blinds you and I can still see. I am at this point, a sponge, absorbing anything and everything I can read, I can see, I can understand so any help, any help you can offer would be greatly appreciated and yes I kind of like the game myself. You see I’ve played this game already but in a different industry the rules are not all that different as to the playing of the game nor the players; the numbers just change. Thank you for your response and again ANYTHING! Ron
Sorry, I had to switch screens I’m doing this on my phone right now and the other screen was easier to see. I’ve got everything you sent and thank you.