My mother was in charge of her friends estate when she passed in 2008. Her friend used to get checks from mineral rights but after she passed it was never brought up. Last week, out of the blue, mom gets a call that an energy company wants her to sign stating they will pay her 2k per acre to buy the rights. The order of payment they sent states: Grady OK Section 25-4N-6W and Mcintosh Section 4-11N-18E, Prospect/Project Name Grady, Net Acres 15.07. They said if she doesn’t sign it, she will have to pay to change the title but if she does sign they will do everything for her. Her friend had no next of kin. We are completely clueless to all of this. Would you please just point us in the right direction?
Welcome to the forum.
DO NOT SIGN ANYTHING from that offer. It may not be hers to sign or it might be hers and very worthwhile to change the title herself if she is indeed the intended heir.
If your mom was the executor, then she has to follow the rules of the state in which the minerals exist. If the friend had a will, then the will needs to be probated. If there was no will, then the laws of intestate must be followed. The buyer wants a quick solution. Time to slow down a bit for sure on this one.
25-4N-6W Grady Marathon is about to frack several new KEM RANCH wells in that section and they are going to be very good-probably way more than what was offered. If your mother was supposed to have received the minerals, is there any documentation? Mentioned in the will, letter? etc. ? She needs to contact an attorney to get this properly handled. The first well is still online and more are coming. There may be royalties in suspense. (There is an ongoing thread on the forum for this section.) Some complications for some minerals owners. Lots to untangle and well worth it. I am in those wells and have been offered quite a bit more which I have turned down!
McIntosh 4-11N-18E-less valuable, but under the same rules of the state.
2 Likes
The estate should be getting credit for the royalties from the wells. Your mom does not have to pay for the probate, the estate does. Was the will filed? Who are the heirs? They are the only ones that can sell. The executor can sell for them if given permission, but the probate has to happen. One of the estate lawyers on the forum may need to step in here and explain the process. The point is, that offer is VERY LOW and if there are heirs it would be a disservice to sell without properly probating the estate first and letting the heirs decide. If your mom is unable to act as executor, then another can be appointed.
I have the first well in that section. For some reason, an error was made in royalty distributions starting back in 2019. I have not been paid on a very good well on a very long time. My request for information is currently being reviewed at Marathon and will take about 60-90 days. I will then find out how much they thought I was overpaid and how much is left to balance out. Very important because I am due the royalties for the next infill wells that will be coming online in just a short while. The buyer also wants those royalties from the friend and is not offering a very good price for them. The friend’s estate might be in the same position regarding back royalties. This needs to be handled in a proper legal fashion and not through a quick sale.
I agree with @M_Barnes. Do not sign anything until you know more information. To understand how the minerals were titled, some research would need to be done. That research can often be done at okcountyrecords.com or in person in Grady County. As for the probate, was there a Will? You say there is no next of kin, do you mean she had no children? Most people have a next of kin (or called heirs) even if they are very remote.
Contact the attorney who handled the probate. It is possible that the title can be cleaned up with a simple affidavit.
This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.
The lawyer has since passed away, about 10 years ago.
Chiming back in. There may be a lot of money held in suspense for your mom since 2008, so do not sign that offer until you find out. There is definitely a whole lot of revenue about to come online. This is worth getting to the bottom of before making a decision.
1 Like
Wow, that sounds like they are trying to take advantage of her! Changing title is cheap. You just pay the county clerk recorder.
If your mom is legally able to sell the rights, then she is legally able to take proper title.
@LisaJ “just paying the county clerk” is a bit of a over simplification. The county clerk isn’t going to draft the deeds for you, or give you legal advice on what needs to be filed of record to change title. You want to make sure your mineral deeds are properly worded so there is no interest omitted or improperly worded creating a cloud on the title.
1 Like
Another attorney should be able to assist with an affidavit.
This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.
Your mom would be better off buying the mineral rights herself. As the executor of the estate, she can sell the rights. A little bit of work can reap a world of benefit for generations. She could then pass them on to her heirs. These could be quite valuable. ( i had a similar situation, had little money to sort out, but did and am so glad I did. I was able to retire early, and have lived quite nicely for over 10 years.) Attorneys will often work with you, or perhaps trade part of the mineral rights for attorneys fees. Please don’t get taken by these low offers just because you don’t understand or want to do a little work. You may have to do alot of the work for your mom. It would probably be well worth your effort. It may take some time and effort but well worth it.
2 Likes
Umm. I would hire a lawyer. Executors are held to stringent rules governing self dealing, in most states. And it is worth it to avoid expensive litigation down the line .
1 Like
This topic was automatically closed after 90 days. New replies are no longer allowed.