I recently received a letter to purchase mineral rights that I just found out that I am an heir to. They are supposedly in receivership. I found out what that means but I’m trying find out how much money is in the receivership and what I need to do to get it out of receivership. Trying to determine if this is worth pursuing or just to sell the rights.
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A person can’t make a good decision unless them know the details. Be careful. Your assets in the supposedly receivership may be worth a lot of money and are being “eaten up” by legal fee’s.
Many of these offers are scams. If the alleged purchaser will tell you the name of the court, you can call the clerk of the court and ask what the total amount of money in the receivership is. Keep in mind this is only the total, she won’t know how much of that belongs to you. You will need an oil and gas attorney who will review the title to these funds and can then tell you what portion is yours. With that information you can make an intelligent decision on whether to sell or to file the necessary documents with the court to get your share. Keep in mind the amount with the court is only past royalties, not future royalties. An oil and gas attorney can tell you if there is a defect in your title to these minerals and help you cure the defect so you will get both past and future royalties.
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What state/legal descriptions? How many acres do they say you might own? Is there current production/long term upside? If its a small interest thats making little money with limited upside, by the time you pay a lawyer, youll more than likely walk away with pennies on the dollar of what your offer is.
Receiverships can be a mystery. You will need a court order to get your interest removed from the receivership. That can get really tricky if there are multiple parties involved. You will definitely need an attorney to get your interest removed. Also be aware that there are many instances where companies do not pay into the receivership because of unsigned division orders or other issues. Every instance is different. It will probably not be necessary, but keep in mind you may also have the option of making a contingency agreement where you divest a portion of the proceeds to a third party to handle the legwork and retain a portion without paying any legal costs. Usually a local attorney that is familiar with the district clerk and other parties involved is you path of least resistance.
You may also want to take with the Attorney Ad Litem who was likely appointed by the court to represent the interests of the unlocateable owners.
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