Here are links to Tx RRC site for GIS mapping and query options:
http://www.rrc.state.tx.us/about-us/resource-center/research/online…
http://www.rrc.state.tx.us/about-us/resource-center/research/gis-vi…
So I am fairly new here and have not been very active due to the simple fact that I had very little knowledge of the subject and really didn’t even know what to ask. I have done some research with the help of a friend and here is what I now know:
Our leases are with Whiting and our land is under the name O’Brien. Apparently we own surface rights on thousands of acres with multiple producing wells. We have been receiving royalty checks for the last 9+ years as part of a trust. The trust ends March 2015 and the bank is proposing they continue handling the mineral rights as a whole (for 13 beneficiaries) because it would be too much of a hassle to divide up the rights 13 ways and it would be more beneficial to us to keep it as a whole. However, the majority of beneficiaries must agree on this.
Seeing that I will likely own these assets for the rest of my life, I feel it is important to educate myself, even minimally, on the topic.
I am looking for resources on info regarding division of mineral rights among heirs. Any info, input, or insight anyone could offer would be greatly appreciated. (p.s. I have done some Google searches and looked for books at the library on the topic but have not had much luck)
Feel free to message me personally.
rockman…lease was with Whiting and then sold to Jagged Peak. They have been less than cooperative with communication. Do you know anything about them and if they are active? Also websites where we can track what is being developed/drilled?
Randy, with respect to Jagged Peak, they are active in the Permian Basin with both leasing and some drilling. I also know that they were looking to divest some properties in Pecos and Reeves County a few months ago (not sure if they have done a deal or not on this). Some operators (like Jagged Peak) follow the mantra of “only talk to lease holders if you have to” / unless your lease has verbiage to “force” communications, all you can do is keep trying to contact them.
As for links / websites to see what is happening, outside of subscription sites like DrillingInfo.com, the best option is to use the Texas RRC site (free but difficult to figure out until you get the hang of it). There are various search options for permits and completions plus the GIS mapping option allows one to go to any area in Texas and “see” wells via clicking on them.
Good luck in your endeavours.
The link to this Tx RRC tutorial is from August 2013, but it should give you an idea of what can be obtained from this free site.
http://eaglefordforum.com/forum/topics/texas-rrc-gis-site-tutorial
Shawni,
First, it is not generally a logistical problem to file deeds dividing the mineral and surface rights among a specified group of beneficiaries as they usually will receive the interests in uniform, although not necessarily identical, percentages. Second, the bank is collecting fees and likely wants to preserve this arrangement. If the trust owns significant property, it will pay to negotiate any management fee if you elect to continue under the trust.
You need to ask the bank for a written list of all of the wells and properties, both surface and minerals, owned by the trust. The minerals will be in gross acres (eg 640 acres in section) and in net mineral acres (1/8 minerals = 80 NMA), for each section. You should ask for copies of all of the documents related to the trust properties – deeds, leases, trust legal document, checks to see the payors and royalty decimals for the various wells, last 5 years of trust tax returns with all related detail (not just your K-1 form), etc.
You need to determine what the bank is doing and what it is charging for this work. How is the bank actively managing your properties? Is there continuous and active leasing or are these old leases? Is the bank only collecting royalties and disbursing the funds among the beneficiaries, besides paying the property taxes. My experience is that bank trust departments generally collect revenues, but do not actively audit the checks to be sure that all royalties are paid accurately for each and every well. Also, the bank may or may not negotiate better lease terms and you need to see if the bank is only signing the lease form presented by the oil company or it is using a protective and detailed lease form. How much money has accumulated in the bank or are all the revenues being disbursed to the beneficiaries?
I favor personal involvement in all property management decisions. You can hire an attorney, accountant, etc to help, but you should be involved. If you elect to treat this as simply “mailbox” money, then you will lose revenues. There is definitely a benefit for the beneficiaries to work together as it is much easier to negotiate better lease terms and to manage properties. If you are close, you may want to consider setting up a partnership. I recommend that you all attend the Royalty Owner Programs at TCU Energy Institute for an intensive introduction to mineral management. It can be a lot of work, but rewarding. **[www.energyinstitute.tcu.edu/workshops](http://www.energyinstitute.tcu.edu/workshops)**my last check was based on about $70./bbl. That’s above the WTI rate but i figure it will go down more in the months to come.
I encourage everyone to try to start using the Tx RRC GIS mapping site to check out your areas of interest and get an idea of historical activity. Also check out new permits section for recent activity.
Legal description is Section 72, Scrap File 835, Mrs. P. A. Black Survey, assuming a common boundary line between Section 72 and Section 28, Block 1, W&NW. Ry .Co. Survey.
Rock man…do have any news on drilling in NE part of sec. 7 blk. 33? Thx.
Nothing in Section 7 Block 33.
Endeavour has a permit (November 2014) for a horizontal in Section 10 Block 33 about 2 miles away. Have yet to move on rig however.
Is your lease with Whiting?
Shawni,
With respect to your situation as described below, I would strongly encourage you to get some professional advice from a qualified O&G attorney (or similar person) as to this whole situation. Educating yourself is great and something that you should continue, but the intricacies of O&G issues requires outside consult to protect your rights for the future.
This is my opinion on this and I am sure that others familiar with O&G issues would echo my sentiments.
Good luck on this effort. Ideally, the 13 different members of your family should work together to get this consultation and work as a group for the best interests of everyone.
More on Jagged Peak - the principals behind this company are very experienced Permian basin players. Website still under construction as noted below.
Shell has 500+ BO & 900 MCF per day) and one waiting on completion.
Suggest you go to Tx RRC GIS site to view this area and see location of these wells and related information.
There are no new / recent permits in either Section 72 or 28.
So what I am gathering from comments below is I will either be paying the bank or a mineral manager to run the show if management by the group of beneficiaries is out of the question (which it is). It sounds like a mineral manager should have more knowledge on the subject and could potentially help us maximize our profits. Where as the bank may or may not. Either way, I will definitely look into the TCU class. That sounds like something very important that I will also recommend to the other beneficiaries. Thanks for the info. It has been very helpful!! And if there are any mineral managers on this site feel free to reach out to me.
Rock man,
Your advice reiterates what we have been told from the start: stay as a group and consult an attorney. So right now that is the goal. We are mainly in the Austin/Corpus Christi area so if there is a recommend for an attorney in this area feel free to reach out.
Shawni- Really good comments from TennisDaze. My experience has been that bank trust departments are, in general, not very good or aggresive mineral managers, and their fees are high. I am sure there are some exceptions. Also, I suggest the 13 of you hang together for management and lease negotiation purposes. You have much more leverage as a group. One alternative is to form a partnership or LLC and get professional help from an attorney or mineral manager. The hard part is deciding who among the owners will be the manager, what kind of authority they will have, and whether they get compensated for their time.
Attorney suggestion:
Thomas J. Howell of counsel
Key Harrington Barnes P.C.
3710 Rawlins Street, Suite 950
Dallas, TX 75219 4237
Direct Dial: 214 884 4811
fax: 214 615 7926
Email: [email protected]
I have use Mr. Howell on Oil and gas leases in addition to Right Of Way (ROW) Leases. He is a mineral owner in Texas. He is very good and I would recommend him. There are however many other attorney’s for your selection in the mineral rights forum, yellow pages but word of mouth recommendations are the best.
Mike East
What is the value of land without mineral rights? Getting offers and they seem low… but, again, mineral rights not included. Thanks.
My wife’s family has a number of mineral rights properties in Ward County. These have been in the family for some time. Recently, my brother-in-law received a letter from Cimarex regarding a property, Flintlock 34-144 in Ward County. The county has the family on record as the owners, but Cimarex is contesting. The family had to hire legal help. The attorney they hired is, Zollie Steakley, Sweetwater, TX. We received a tax bill last year, even though we have received no royalties on this particular property. Can anyone help us understand what is going on? Why is the county record not sufficient? What is Cimrex up to? We have already incurred about $15,000 in legal fees. Thank you!