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Questions On Oil and Gas Mineral Rights

1,436 Views | 16 Replies | Last: 5 days ago by txaggie_08
UTExan
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My sister received a call from Vanguard Partners LLC (energy exploration) in Dallas regarding sale/lease of mineral rights. This came out of left field because we had zero knowledge of interest in real estate. Upon reflection, we figured this might involve an old family farm near Lingleville (Erath County), TX. The farm was not large but we figured that our mother had sold her share of mineral rights and property rights to the land decades ago to a sibling if her parents died intestate. We also figure that there are perhaps descendants which number between 70-100 people.

Having zero background in Oil and Gas, I am just wondering how the exploration company does the research to obtain names of persons with potential mineral/property rights since we are not on public records in this county to my knowledge.

Any help is appreciated.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
A. G. Pennypacker
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AG
These are public record at the county clerk's office. Visit the county clerk's office in the county where the property is located, search for deeds, leases, and other documents related to the property. Many counties in Texas offer online access to property records.
topher06
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Probably in this order.
1. Old oil and gas leases that were recorded.
2. Tax records if there was any taxed production.
3. Maybe an administrator's deed if she did die intestate and the estate was administered.
4. Just fishing for recently deceased people.
UTExan
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Thanks!
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
Imsodopey
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AG
You could also go to the Erath County Appraisal District's website and do a property search using your mother's name. If still in her name, it will be listed.

You could also input the address of the property to see if owner's name pops up. County taxes are paid by the name of the owner listed for the property.

There could be a possibility of nothing popping up if there is no active drilling on the property.

Hope you find what you are looking for.

Edit: List name of owner for property address may be the owner of property, not mineral rights.
A. G. Pennypacker
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AG
I have a small interest in mineral rights in Fayette County. I do get a tax bill every year from Fayette County for my "property" - ie the mineral rights interest. We sold the land a couple of years ago, but kept 50% of the mineral rights.

Sounds like your sister has not been getting a property tax bill.
UTExan
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Yes. The property + mineral rights were sold back almost 55 years ago as I recall, but the buyer was a cousin who may not have passed on the property/mineral rights to her descendants for some unknown reason.
Thanks.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
birdman
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You won't have any taxes on non-producing minerals. CAD office will have zero knowledge of the minerals.
Mas89
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AG
Your mother may have reserved the mineral rights when she sold her part of the surface. It can get complicated.
And no taxes are paid for mineral rights unless they are producing a product. Only the surface owner pays an annual tax.
A. G. Pennypacker
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AG
birdman said:

You won't have any taxes on non-producing minerals. CAD office will have zero knowledge of the minerals.
Good point. The small interest I have is producing and I am receiving a small royalty.
Stan Crowch
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AG
They have landmen running title back to patent via the county clerks records.
topher06
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Not for fishing expeditions, they don't.
V8Aggie
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AG
Stan Crowch said:

They have landmen running title back to patent via the county clerks records.


This. Title is run back to when Mexico deeded the land to Texas. The landman running the title is not limited to the county courthouse. If they hit a snag, they'll research and hunt down the heirs which includes drafting and filing all necessary documents to cure title in the county where the property is located.

I'll edit to say sovereignty run sheets (back to patent) are typically reserved for drilling title opinions. For leasing, they'll run title back to early 1920's which can be done in a day or two depending on the difficulty. More complicated could take a week or more.


Source - in house lawyer/landman now work at one of the big ones.
topher06
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Isn't Vanguard just a mineral buying shop? If so, they're not running title on these guys until they have an expression of interest. That is why all of their lowball letters are contingent upon title verification.

Contrary to popular belief on this board, it isn't always bad to sell your minerals. It is just usually bad to sell your minerals to one of these mineral flipping companies. Just call the nearby operators and you can usually get a better price.
UTExan
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topher06 said:

Isn't Vanguard just a mineral buying shop? If so, they're not running title on these guys until they have an expression of interest. That is why all of their lowball letters are contingent upon title verification.

Contrary to popular belief on this board, it isn't always bad to sell your minerals. It is just usually bad to sell your minerals to one of these mineral flipping companies. Just call the nearby operators and you can usually get a better price.


That's what we figured as well.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
whatthehey78
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AG
Question...if/when land is sold and mineral rights are not addressed in the new Deed, are the mineral rights retained by the former owner? My understanding is "yes", but would like to confirm. TIA!
Alexander, Caesar, Charlemagne, and myself founded empires; but upon what foundation did we rest the creations of our genius? Upon force! But Jesus Christ founded His upon love; and at this hour millions of men would die for Him. - Napoleon Bonaparte
txaggie_08
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AG
No. If the Deed isn't limited to surface, and there is no other mention of minerals in the document, then they would be conveyed with the surface. You have to explicitly reserve the minerals if you intend to sever them from the surface.
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