My parents have asked me to help them sort out some oil/gas rights they inherited from my grandfather, some of which are in Okmulgee County, OK. I am starting from scratch here and reaching out to the internet for help. Any advice on how to get started with verifying/claiming ownership, figuring out how to read the deeds, seeing what (if any) activity has been going on in the past 30+ years these have been inactive, etc. would be greatly appreciated! Thanks!
The first thing to do is collect every bit of information and documents that you can find.
Get good at Excel!
You can hunt down some of the minerals back to the early 1990’s on okcountyrecords.com. Small fee to join and then you can look at everything by tracing family names. Printing might cost you a bit more in a particular month. I download mine digitally and then print them myself.
If you find the Section, Township and Range for your holdings, then you can come back here and ask for help on the activity.
Keep asking questions!
Lease or Purchase Love County,OK Oil and gas mineral rights. Section 11, Township 08 South, Range 01 East PURCHASE OFFER ACOMA energy Per acre cash 2,000 Total $6,020.91 Lease OFFER BONUS PAYMENT 300.00 ROYALTY18.75% Lease term 5 years Total lease bonus payment 903.14 Don’t have clue what this all means. My sister and brother both have the same amount and want to sell theirs. Any idea what I should do? Your help in this matter is greatly appreciated. Kathleen Flanagan-Olson
You appear to have an offer to buy your minerals at a certain amount per acre which looks to be $2000/ac. Do you have a bit over 3 acres? Or you can lease your minerals for a bonus of $300/ac and in turn receive 3/16ths or 18.75% royalties on any oil and gas found.
The sale would lose the minerals in exchange for cash now (and a capital gains tax of 15-20% on the profit of the sale). The lease would get a bonus up front and then payments down the road for any well production and you keep the minerals. A five year lease is not a good idea. Most of us do a three year lease.
Any offer to buy is usually low to what they would actually finally pay, so you have some time to find out what your area might be worth.
Lots of room to negotiate here. Don’t make any quick decisions.
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If this was not in a trust, it is likely that an Oklahoma probate is needed. Once it has been completed the order should be recorded. If this was in a trust, a trustee’s deed should be filed. Typically, a division order analyst will have an idea of the net mineral acres owned by your parents. Richard Winblad