E /2 SEC 12 & 13 BLK 35 T-1-S T&P RR CO SURVEY Trying to understand. One offer unsolicited and one we called. The one we called offered 7,000 more. We recently received division orders and have never received any royalties. My understanding is that there are recently drilled wells there. My piece of the pie is very small , but the offer is tempting 40k. Not sure if that’s a good deal
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You might want to find out how much royalty is waiting in suspense. Several someones are interested in the royalties in suspense and any future ones. Find out what drilling is in the area.
When I get an offer, I do several things to see if the buyer is legitimate. -I look them up on Bizapedia and see how long they have been in business. No problem in being a new company, but I am look for the owners to see if they have experience and their BBB rating. I look to see if they are part of any lawsuits.
-I look up the owners on LinkedIn or other sites to see what their training and background is.
-I look up their website. Are they willing to say who they are? Who is funding them? What do they do? etc. If they are not willing to reveal who they are and how they are funded, then I will not deal with them.
-I ask if they are willing to put 10 percent of the purchase price in an escrow account as a good faith measure. What third party is holding that escrow for them? Attorney? Accountant? I want a PSA in writing and an agreement that the remainder of the payment will either be paid to the escrow account and my third party who is holding my lease will turn it over when the check clears or it will go to my direct direct deposit account before my third party will be handing over the lease or deed. Never ever hand over a deed or lease without getting paid.
-I look at the timeframe that they are looking at to pay me. I also look at if they forbid me to market to anyone else.
-I tear up the offer if there is a check at the bottom.
-always read the fine print. Get professional help to read the offer.
-first offers are usually just that. Negotiate for better once you have done your homework.
Good advice from Martha. If you have returned the division orders, wait for your first royalty check(s) before selling. You do not want to be paid out of your own royalties. Go on the RRC website and see how many wells have been permitted and/or drilled that include your tract. If a unit has been formed, then you will participate in all wells in the unit. If you post more detailed information such as well names and operator, then you can get more responses.
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