AboutFrederick M. Scott CMM RPL Expertise I can answer questions about oil and gas leasing, give suggestions on negotiating a good oil and gas lease, and suggest ways on how to best deal with the oil and gas companies or their representatives. I can answer questions about buying and selling oil and gas rights. I can help with questions concerning forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.
Experience I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the course of doing so. I am currently on the Board of Directors of the Oklahoma chapter of NARO, and while a NARO member I have written several articles of interest to royalty owners which have appeared in various industry publications. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law and landwork in general in the process. I've seen the business from "both sides" and therefore feel confident I can help out royalty and mineral owners who ask questions in this forum.
Organizations NARO, NADOA, AAPL
Publications National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, Landman Magazine, and several royalty owner association groups newsletters.
Question Hello!
I've been contacted regarding sale of some Mineral Rights in OK. Currently, they are under year two of a three year lease. How can I find a consultant to help me assess the offer and negotiate current vs. future value?
Many thanks,
MW
Answer Well, you could actually contact ME to help you assess the offer if you wished. I'm pretty familiar with mineral rights in Oklahoma, Texas, and some other states, and have consulted with many mineral owners who were trying to sell their minerals or evaluate an offer they'd received. Email me your current purchase offer if you like, along with the legal description and lease royalty. If your current offer is a good one in my opinion, I'll tell you. If it's not, I'll tell you that as well. My email is: scottminerals@aol.com, or you can fax any offer letter you received to me at 817-887-3400 and I'll take a look. Make sure to include all pertinent information in either case.
Buyers (such as the one who contacted you) will of course evaluate your minerals for you, but they won't do it for free unless you are planning to sell to them, and of course it may not be a very "objective" opinion either, since they are the ones wanting to buy them. Because of that, an offer from only ONE buyer is really not enough to assess the true value of your minerals.
I do find however, that obtaining offers from at least SEVERAL (unaffiliated) buyers is a pretty good way to figure out their true market value. Most people don't KNOW more than one buyer however (if that) which is why I sometimes help people find buyers for their minerals, as long as they've already decided to sell. I don't try to talk anyone into selling just to be selling however. Some people though, for various reasons (dwindling production, too much paperwork, want to retire, travel etc.) end up selling.
I know of at least a couple of mineral appraisal companies out there who are reputable, but the costs of having them do an evaluation to see exactly what your minerals are worth MAY outweigh the benefits unless you own a large property. They are not buyers however, which would ensure an "objective" opinion at least. Netherland, Sewell, and Associates is one company I've heard is good. They have offices in Dallas and Houston. Terrel Sheilds in Arkansas is another reputable guy that does mineral appraisals. You can probably just "Google" his name to find his website. Tell him I sent you if you contact him. I think he knows who I am as we are both members of NARO (The National Association of Royalty Owners.)
Current vs. future value is a little tricky to determine, especially with non-producing interests. No one can really predict with much accuracy the long-term future of oil and gas prices in my opinion, and thus cannot accurately predict with accuracy the potential future value of your minerals. If it were "easy" then there wouldn't have been so many companies and individuals caught unprepared when the "bust" in the oil business hit in late-2008. I would have sold some of MY minerals in mid-2008 had I known what was coming. Hopefully their value will go back up someday, but it could be a while.
Bottom line: If it's a good offer, I'll let you know and you won't need any more help from me. If it's not a good offer, I can help FIND you a good offer (I know lots of buyers) assuming you are already planning on selling them. Hopefully you will have already considered both the pros and cons of selling your minerals before deciding to do so. I could give you some pointers in those areas too if you wished. You might decide you don't want to sell them. But if you do want to sell, I can help hook you up with a reputable buyer.
Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
Timbercreek Mineral Company, LLC
scottminerals@aol.com
