We were offered $8000 for these mineral rights. Where do I get information about exactly what is owned? Land and rights verses just rights. Below is what the offer provided as information. Thank you for any help you can provide
31-T10N-R4W 1.667 net mineral acres on 1/8th royalty
If they only offered for mineral rights, then that is probably all you have. Most surface rights were severed decades ago. Ask the person who offered where they got your amount of acres and who did they say you got it from. If they cannot answer, they have not done their title work yet.
But you might just want to ignore the offer. The section immediately to your west has multiple horizontal wells-one that was just drilled last year. Most buying is ahead of the bit, so you might want to pause and see what happens. Horizontal wells perform much better than most old vertical wells.
The company that made the offer was Buffalo Bayou Resources based in Houston, TX. When I asked specific about what was owned the person I emailed with said they were requesting the McClain County Plat Book to get more information, but I’ve heard nothing since.
Would it be worth contacting the company that is drilling to the west? Or should I wait and if I do how would if the other drilling is successful?
Thank you very much for your help.
If you really don’t need to sell, then just hang on and see what happens in the next couple of months. If you just inherited, it would be a good idea to get the estate to value the minerals right now so that you have a step up value. Then you have that in case you do sell as you may have capital gains tax if you sell.
I suspect that if you wait, you may make way more than $8000 from new horizontal wells. EOG has already filed for two horizontal wells in section 6/31. That is why you got the offer.
EOG pooled that section late last year. Make sure that they have your name and address if you did not get the pooling info. Or you may have already been leased. What is the status on that? EOG RESOURCES INC 3817 NW EXPRESSWAY STE 500 OKLAHOMA CITY, OK 73112-1483
Here are the permits for the two new wells. Note that the surface location is in 7-9N-4W and the wells go north through 6 and 31. You need to follow any progress by looking them up in 0709N04W Legal Location box. Test
So does this give them the right to drill on the area that we own without contacting us? I’m sorry this is all very new and confusing. I haven’t reached out to them yet but will on Monday.
Thank you, you’ve been so helpful.
Bart
Yes, the mineral rights are dominant over surface rights. The operator will contact the surface owner if they plan to use their land to drill and craft a lease with the owner that protects their house, barn and restoration of the land after drilling.
The operator will do its best to contact all mineral owners whose names are on file in the county courthouse. They will try to find everyone, but sometimes it is not possible. They will move ahead with activity under the statutes of the state that allow it.
You may find the Mineral Help tab above useful. The National Association of Royalty owners has an OK chapter that holds conventions, townhalls, webinars, etc. to educate royalty owners. The OK Corporation Commission has a good handout for mineral owners.
0_Royalty-Owners-Booklet-112020.pdf (6.8 MB)
I’ve tried emailing EOG Resources at [[email protected]] as well as call their Interest Owner telephone number. The voicemail ask for you to leave an Owner Number which I do not have. Am I going at this the correct way? I believe you mentioned I should contact them and let them know I own mineral rights.
Thanks so much in advance.
Send a certified letter to their street address return receipt to the operator. Make sure that your name and address are on file with the clerk of deeds in every county where you have mineral rights.
Hello I’ve been in contact with Jon Johnstone at EOG Resouces. His in Land Administration. He sent me their affidavit forms for establishing heirship and I have submitted two, one for my grandmother to my father a second from my father to my brother and myself. He has submitted the documents for review. I’m assuming they are approved what will happen next?
Would we begin receiving royalty checks if something is active on our rights? He said there was activity and the well was named Warhawk, I believe. Would we be due royalties for before our claim?
Thanks again for you input. Bart
As to receiving royalties, maybe. If the amount of money is a good amount, and/or the well is a good producer, EOG may want you to probate these estates in Oklahoma. But, wait until you hear from EOG on this.
Don’t be surprised if the company comes back and says a probate is needed after all. Often companies seek this information to have information about the heirs. However, there is no guarantee that the company will be willing to pay out royalties based upon an affidavit. You can still file an AOH with the county clerk regardless of whether EOG “approves” it. However, it won’t vest marketable title until it has been on file 10 years.
If a probate is needed, those can usually be completed in a few months unless highly complicated.
You should also unclaimed property in the state where your grandparents lived as well as Oklahoma.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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