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Oil/Gas/Grady OK Mineral Rights Sale

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Question
I have a couple questions:
1. I have an offer for $6K/acre. Is this a reasonable market price?
2. The contract shows $6K/acre but the Mineral Rights Deed that was sent to me shows the sale price of $10 total plus OVC. Could you help me understand whether the Other Valuable Compensation references the contract and why the sale price of $6K/acre wouldn't appear on the deed?
3. If I wanted a good mineral rights broker that is familiar with Grady County, who would I call?

Thanks in advance. I really appreciate any information you can provide.

-MW

Answer
1.   I first must tell you that I am not ever in agreement with the sale of a mineral estate.  You should keep these minerals - whoever is wanting to purchase them knows about the considerable amount of activity in the area and because you are in Oregon and do not see the rigs and work that you may be an easy target.

You could be selling yourself quite short at $6,000 per acre as I have seen leases for minerals in the area being paid at $3,500/acre.  This means that they are likely worth about $35,000 per acre.  The leased acreage would also be entitled to a royalty of nearly 20% of the revenue from any well production.

2.  The common deed language is $10 plus Other Valuable Consideration so the tax man and your neighbors will not know what was paid or what was received on the sale of the property.  The language on the deed is irrelevant so long as you receive the check paying the full agreed amount.  

3.  There aren't any "brokers" for minerals outside an oil and gas company, oil and gas attorney, or an established landman.  There may be some national companies, that you could search for, that buy minerals from individuals but there isn't a network like there are for realtors.  If you choose to go the attorney route then you may want to call the Oklahoma Bar Association and ask for a referral for an oil and gas attorney.

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Cliff Williams

Expertise

I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.

Experience

I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

Organizations
State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

Publications
Multiple oil and gas topical columns on ezine.com.

Education/Credentials
I have a B.S. degree which I rely upon more than my Business Mgmt degree or Law degree...

Awards and Honors
Husband and father of 26 years

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