My elderly uncle just died. I’m the executor. Among his papers, we found a letter from an oil exploration company offering compensation for “proposed Surface Use and Compensation Agreement with Subsurface Easement.” The letter is dated 2018. The company that sent the letter appears to be out of business and is now owned by another company. As far as I know, my uncle never responded.
I’m not sure that my uncle ever had a deed. According to family lore, his mother’s father (my great grandfather) once had a large cattle ranch in this area. He went broke during a long drought in the early 20th century. He held on to the land, which got distributed among his heirs.
Apparently, the oil exploration company believed he owned surface rights to this land, though I can find no record of that at the county assessor’s office. I’ve got a few questions:
– Is there much oil activity in this area?
– In this part of New Mexico, do surface owners typically own mineral rights?
– Would it make sense to hire a land man to research the deed? If so, how much does that normally cost?
– Do oil exploration companies normally make fair offers in compensation agreements like this one?
– Does the oil exploration company actually know who owns the mineral rights?
Timborino, I was in a similar situation with my dad’s estate a few years ago. Still pretty much a rookie on the O&G learning curve. Others can better answer your land man and cost questions. But a couple of suggestions from my limited experience.
First, there are at least 14 active wells in 27-18S-26E, most look to be older vertical wells with waning production, plus 3 newly permitted horizontal wells across Sec 26’s northern quarter. You need to narrow down where in 26 your uncle’s interest may lie. See NM OCD Oil & Gas Map for locations & details (OCD GIS and Maps - Oil Conservation) - be sure to click on the Public Land Survey System in the Layers List for ease of navigation.
Second, to track down if and what land or minerals your uncle, great grandfather or other family members may have owned, search their surnames in Eddy County’s recording index (County Clerk | Eddy County, NM). Their online index dates back to mid-1800’s.
Third, search unclaimed monies at https://missingmoney.com/en/. Narrow your search by surname, then by state. You may find a few matches which you can claim as executor and give clues to what company paid your uncle. Which may lead you to other trails. Well, good luck & good hunting.