My dad owns 1/14 mineral rights and has a lease and division order. Last month I discovered the property taxes went delinquent and it was sold at auction. I was able to redeem the delinquent taxes. Prior to discovering the delinquency, my dad was approached to sell his royalty interest and has been moving forward with contract negotiations. Dad was approached before we discovered the delinquency, and I’m concerned that the buyer is aware of something going on that we haven’t heard yet. I welcome comments and suggestions.
Maybe they think since no one paid the taxes then no one cared about the property. The fact that your father is considering selling to them is a good reason for them to think that. Selling minerals is something that takes some considerable thought. Once you sell them they are gone. People have kept them for years in their family and there is a reason for that. As for me, we would not sell. I believe I read somewhere that an acre in a good Marcellus horizontal well was worth 10 times what a vertical well was worth. I believe it added up to several thousand dollars over the life of that well for one acre.
Michael,
I totally agree with your point of view, I would hold onto the property if possible.
Tell your dad patience is the word. Those minerals did not pop up overnight. From the time a company starts drilling it is usually at least 2 years and sometimes more before one sees a royalty. If he sells, he gets one check and his next generation (you) get nothing.
DT and Wilson, both of you are right. And from what I keep reading, it might be awhile before there is much more drilling, due to low prices. But when those checks start coming, they are worth waiting for, and are likely to produce more in a few months than the price obtained from selling. At least that is my understanding.
Wilson, if just mineral interest, there won’t be a tax map and parcel. Still, the assessor’s office should have a record of any wells associated with a mineral interest, if those wells are in production, with the caveat that If the producer reported properly to the state tax department the correct well with the correct royalty owner, and if the connection was made when the well was drilled with the correct mineral interest (all of those my understanding and some my experience, how things can be incorrect)
Property tax receipts do have map/parcel noted. Sure wish I knew of and had contact with the other owners right now.
Just a few minutes ago I made a reply to a different discussion on the Tyler group Tyler discussion with link to tax and deed information
Go there, look in the tax search and see if you find any relatives. Worth a try.
Nancy,
The tax id “Example 03-9999-0000-1745-0000” does not denote the map or parcel, however it is sufficient information for the Assessor’s Office to provide insight into production. The first two digits of the tax id refers to the District.
Quite correct Wilson! I should have been clearer.
However mistakes can be made… I had a well (more than one) listed for the wrong property, one without a well. I heard of someone where the producer reported production for a long deceased royalty owner, where his descendant was the new owner and had an account with the assessor, so there were two separate listings for the same interest, … etc. Anyway you’re correct!
Oh My!!!
If there is any way possible, try to void the sale!!!
I just want someone to show me some money. I have 25 acres with Jay-Bee, the well went into production a few weeks ago. At 1/8, can anyone tell me what to expect at $2mcf?
I don’t like the wording in the contract, but Dad seems to think since he hasn’t seen any royalty money yet, it’s not worth keeping. I’m trying to get someone to look over the contract and give us an opinion. My gut feeling is it’s a bad idea to sell, especially since he signed the DO about 6 months ago.
Michael Seckman, do you know where your mineral interests are? That is the place to start.
Do you have a Tax ID Number? It should have been with the tax bills. I would contact the County Assessor’s Office, learn what wells are on the property, then contact the production company.
Yes, that is the tax id. Frequently it would be written as 01-9999-0000-4860-0000, but different people abbreviate it differently. Unfortunately, I do not have access to Tyler County’s tax data base from the computer, so I cannot give you any specific insight into that parcel.
WJ
Ah, the mineral property gurus have chimed in. If there has been a division order issued, your dad should be close to getting a check. Does he not want to pass this interest on to his family? At 85, I can tell from experience, it is “tough sledding” at times trying make dad and mom’s realize things are different than years ago. Good luck Michael.
Michael,
If he does sell his interest, I would not settle for anything less than 8,000.00 / Net Mineral Acre and would hope for closer to 10,000.00 / Net Mineral Acre
Sounds like end of story. Lol
Bad news Michael. Any way to try to stop him even at this stage?