I have received an offer in this Section for 600/a (low from previous lease) 3/16 3 +2 /w 100% bonus.
Also another Large established Operator in this County has sent a letter doing title curative in this section, however they have not offered a lease as of yet.
Anyone else receive any offers? Thanks
Personally, I never do a two year option.
I do not either, but the way the companies are bullying they will just go to the OCC for Poolings and say they could not come to an agreement to negotiate a lease with the the interest owner- Then at that point you will be forced to pick one of their options, which always favors the oil companies and their deductions. It is a bad situation. I am starting to keep my leasing communication to show how the leasing agents drop the ball when the don’t like the Exhibit A you have or you are not willing to lease on their more favorable terms.
I received an offer from Trailhead…Blue Baron. Are they good people to deal with?
Is there a map of the Sections for Love County. We have interests in Section 6 and 20. Section 20 I know is in the Marietta are but where is section 6. I assumed it was southeast of Marietta since that’s where my parents owned a small farm. But I just saw a map of the Woodford Thickness from XTO showing section 6 northwest of Marietta. I am confused.
Love County Map.pdf (321.1 KB)
Each township has 36 sections. The numbering starts in the top right corner and goes left to 6, then down to 7 and right to 12, then down to 13 and left to 18… serpentine numbering.
Thank you for the Love County map. I inherited 15 net mineral acres in 6-8S-3E in December, 2017 and have received offers to purchase the mineral rights. Do you have any guidance how I should establish a tax basis for the 15 acres for income tax purposes? Any recommendations on sources I could contact? Thank you so much for your posts. They are very helpful.
If it were me and there is no production or current lease, the value is established by the offers you have received, but check with you accountant.
Did the executor of the estate give you a valuation?
Talk to your accountant as there are very strict IRS rules on how to value. Good idea about getting a value. It would be as of the date of death of the person you inherited from. Not today’s values if for establishing for possible capital gains.
In the meantime, make sure the probate documents are filed in Love County so land men can find you.
You might want to think about why you would want to sell versus why you might want to hang onto the acres. You might want to lease instead. There is quite a bit of leasing going on in your section and all around you. 93 leases in just your section in the last year or so. There seems to be a horizontal drilling play possibly developing.
The offers to buy are usually by folks that are pretty sure they are going to make a nice profit off of you. The more offers to purchase, the more hints that something is going on. Of course, if you have a major family emergency that needs funds, that is something to consider that might tip you towards selling-at least part and maybe keeping part.
We have a lease on the property and one company is now offering us $6500 per acre for the minerals rights, so there must be something significant in the works. They are also offering $8100 per acre in section 20 for the town lot mom had. My siblings are 76 and 72 and I am 67 so age is a factor in our decision.
I was named the executor of our mothers estate so, no the executor did not give us a valuation at date of death. One person I spoke with said we could base our cost basis on the price of crude then and now. But the price of crude has fallen since late 2017 and I can’t see reported a capital loss on my tax return. I also thought about the value of leases then and now. If land was leasing for $500 and acre then and we leased for $700, we could use that ratio to back into a basis. I don’t have an accountant and live in Missouri. No-one here would know beans about the value of mineral interests in Oklahoma. Anybody know what leases were going for in Dec. 2017? Worse comes to worse, we could just declare the entire value as capital gain, but that seems like throwing money away. Any thoughts, anybody?? Thanks,.
XTO is very active in drilling near you. They have wells planned for sections 7, 8, 16, 17 etc. There is very heavy leasing in your section, so that hints at a planned well(s) for you. The question may be timing. Do you feel like you want to wait a year and get royalties on the well(s) or sell now?
The value has to be at the date of death of the ancestor. If no lease on that date, then the value is probably fairly low. If there was a brand new lease, then you may be able to use it. You can search on www.okcountyrecords.com for any sales near your acreage near the date of death. There is a way to get a value from the document stamps if the acreage is listed. The document stamps tell you how much the deed was worth. Then if the net acres are listed, you can work backwards. For example: Deed stamps äre $1.50/$1000. If deed stamps are $30 then the sale price was $20,000 & if 5 nma, =$4000/acre.
I have Mineral Rights in Love County Sections 5-8S-3E and 8-8S-3E. I have received leasse offer of $900/MA and to purchase at $5K/MA. Does this sound agreeable for the area. I do not know what activity there is here oir near her. H. Walsh
There is quite a bit of leasing in that area of 8S-2E. Someone is putting a play together. If they are only offering 3/16ths, ask for the 1/5 option as well as one of the companies has filed leases for 1/5th.
I have leased Mineral Rights in Love County Section 5-8S-3E and 8-8S-3E. You were very helpful in my negotiations. How will I know if and when the drill and if the drilling is successful? Since I live in California I have no way to know what is going on. Helen Walshi
You should receive OCC notices of any pending activity in your sections. You can also watch the Oklahoma Corporation website for paperwork with the OCC cases and any well paperwork. The well records site is Test. The wells will be posted by the surface location, so you may try north 0508S03E or 0808S03E or the sections immediately north or south of those.
The OCC OAP site is OAP
The mailings will have a case number in the upper right hand corner. Use that for the OAP site.
It could be several months before you see any activity. I just checked and there are no wells or cases listed yet.
Thank you so much for your reply. It is very helpful for those of us who do not understand any of this oil & gas stuff. I read your Business Background and I was very excited to have a conversation with someone so knowledgeable. I had 2 offers to lease and 1 offer to purchase my Mineral Rights. I decided to lease to the highest bidder at $1,000/per MA. The offer to purchase was for $5K per/MA. I hope you don’t mind my asking you some questions from time to time. Thanks again for your help with all of this. Helen Walsh
Forum is here for folks to help one another. Ask questions!
My mother sold her land in Love County in 1993. In the General Warranty Deed there is a clause that says “less and except mineral interests”. It was a fee simple deed. I am trying to determine if she retained the mineral interest using this except clause. Can you provide any insight?
This is impossible to tell without examining the title, but the fact that you are getting offers is a good clue that she did in fact retain the mineral interests.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.