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Old 05-19-2017, 10:59 AM
 
Location: Chapel Hill, N.C.
36,499 posts, read 54,051,718 times
Reputation: 47919

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Some time ago I inherited the interest in some mineral rights in Oklahoma. I don't live in Oklahoma and have no connection to there any more. I get a monthly check which makes no difference to my way of living.

I got a letter from a petroleum land man saying a gas company wants to buy my interest.
How can I tell if this offer is fair? Surely there must be some place where the value of this interest is located. It is not worth hiring an attorney.

I hesitate mainly because I remember some years ago my relative who left me this signed a multi year lease with a gas company which was about 10x what this offer is. And he doesn't want to lease, he wants to buy.
I would appreciate any help you can give me. Thank you.
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Old 05-20-2017, 05:29 AM
 
Location: plano
7,887 posts, read 11,401,514 times
Reputation: 7798
Quote:
Originally Posted by no kudzu View Post
Some time ago I inherited the interest in some mineral rights in Oklahoma. I don't live in Oklahoma and have no connection to there any more. I get a monthly check which makes no difference to my way of living.

I got a letter from a petroleum land man saying a gas company wants to buy my interest.
How can I tell if this offer is fair? Surely there must be some place where the value of this interest is located. It is not worth hiring an attorney.

I hesitate mainly because I remember some years ago my relative who left me this signed a multi year lease with a gas company which was about 10x what this offer is. And he doesn't want to lease, he wants to buy.
I would appreciate any help you can give me. Thank you.
There are specific forums about mineral interests. Google search them. They will tell you about deals that are being made now in each area. Find someone you can chat with and get the scoop. Chances are the offer is low they are negotiable.
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Old 05-21-2017, 02:31 AM
 
Location: Chapel Hill, N.C.
36,499 posts, read 54,051,718 times
Reputation: 47919
Thank you. I will try this.
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Old 06-05-2017, 05:47 PM
 
23,688 posts, read 9,369,016 times
Reputation: 8652
I would hire a lawyer experienced in oil and gas leases asap,OP.
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Old 06-07-2017, 11:56 PM
 
Location: Stillwater, Oklahoma
30,976 posts, read 21,621,734 times
Reputation: 9676
I can't think of any reason to sell your oil interests. I don't ever expect to sell mine. Why give up easy income even if it doesn't amount to much?
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Old 06-08-2017, 05:00 AM
 
Location: Chapel Hill, N.C.
36,499 posts, read 54,051,718 times
Reputation: 47919
Quote:
Originally Posted by StillwaterTownie View Post
I can't think of any reason to sell your oil interests. I don't ever expect to sell mine. Why give up easy income even if it doesn't amount to much?
Well I would agree but dealing with Oklahoma taxes every year is an inconvenience.
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Old 06-21-2017, 05:13 PM
 
Location: The State Of California
10,400 posts, read 15,573,369 times
Reputation: 4283
Quote:
Originally Posted by StillwaterTownie View Post
I can't think of any reason to sell your oil interests. I don't ever expect to sell mine. Why give up easy income even if it doesn't amount to much?


Don't you have to chip in and help pay for the drilling expensives for oil and gas wells?
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Old 06-22-2017, 09:14 AM
 
Location: plano
7,887 posts, read 11,401,514 times
Reputation: 7798
Quote:
Originally Posted by Howest2008 View Post
Don't you have to chip in and help pay for the drilling expensives for oil and gas wells?
No, if you own the minerals you can lease them for money to an oil company who will drill the well, put in the production facility and operate the well, You get cash up front as a lease payment and a royalty if they hit oil. The common royalty for a lease owner is 3/16 or 3 barrels of oil for every 16 barrels produced. Of course you can take your royalty in cash by selling the oil or gas to the oil company. The lease period is for a fixed number of years and if the oil company has to drill if they want to extend the lease without paying you up front again for a new lease. Producing oil from the well holds the mineral lease in place and the royalty payments become your consideration for leasing it for this extended period of time.
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Old 06-26-2017, 02:18 PM
 
23,688 posts, read 9,369,016 times
Reputation: 8652
Quote:
Originally Posted by Howest2008 View Post
Don't you have to chip in and help pay for the drilling expensives for oil and gas wells?
No,thats not how it works.
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