Oil/Gas/mineral acre offer
We were just made an offer for a section in pecos county texas, it is not producing right now. The total section owned is 640 acres.
This is a section divided by others for royalties. How do I find out what the division is for my mothers portion. We have no idea.
Before we can make a reasonable decision we need to know. The offer is 7,000 per mineral net mineral acre. Can you also explain that. Lets say she has royalty rights to 19% what will would she get for this if sold.? To much language in this for me.
The offer is for a lease, right? You didn't say and you haven't provided the exact language of the offer. Some unscrupulous operators make it sound like a lease, but really the offer is to purchase your interest permanently.
Assuming it is an offer to lease from a reputable company, the landman who made you the offer may be able to provide you with some additional information. It sounds like you would have to trace the ownership back through the generations to determine your fractional ownership. For example, if grandpa owned 100% of the 640 acres and willed it in undivided, equal shares to each of five hypothetical children, one of whom was your mother, then she would have a 1/5 interest in 640 acres (which is sometimes called by those who use imprecise language: 1/5 * 640 = 128 net mineral acres). If you then were one of two children to inherit your mother's interest, you would own 1/10th of 640 acres and would be entitled to 1/10th of the leasing bonus (1/10 share * 640 acres * $7,000 per acre) and 1/10 of the future royalty payments generated by the 640 acre unit.