In this episode we answer listener questions submitted by Tyler, Margaret Ann, Nate, Gene, Robert, Anna, and Allen. This one was interesting because we talked about some new topics like: how to underwrite a mineral rights investment, the Haynesville Shale, minimum thresholds for royalty payments, Oklahoma Senate Bill 212, secondary market for non-operated working interests, educating yourself (and others) about minerals, and more.
Some of the listener questions in this episode are addressed in my Mineral Management Basics online course, from how to read a legal description, how to perform a title search, and how to identify nearby oil and gas activity.
Thanks again to everyone who left a review or who submitted a listener question! If you have a question about your minerals or royalties, you can send it to feedback@mineralrightspodcast.com and who knows we might just answer it on the air!
If this has been helpful, please take a moment and leave us an honest rating & review on Apple Podcasts. This feedback really helps keep us going and helps make sure that we are putting out content that is tailored to your needs.
Listener Question #1
Hey Matt, you’ve mentioned in your podcast (although it may be only your older ones) a mineral rights basics course, how can we purchase that? I’m really enjoying learning about this subject but still very much need to start from scratch in my learning. The podcasts are very helpful, but it leaves a lot of fundamental information holes for those who do not have experience in the industry (not a criticism, there’s no way a podcast could fully teach it from the ground up, and I actually am amazed at how much I have been able to learn just from the podcast).
I also am wondering what is the best way to learn to underwrite a deal. I know having someone partner with you like you mention in several episodes on a consulting basis for your fist few deals is of course a great plan, but wondering if there is any education you would point toward to learn it, especially the technical side and how to analyze well quality itself (I’m a finance guy, btw, so no technical knowledge).
I’m also very interested in learning how to analyze operators and their drilling plans but figure I should learn the technical side first.
Keep up the good work, I find it very valuable and I’m sure many, many others do too.Thank you,
Tyler
Listener Question #2
Hi Matt,
Hope this email finds you doing well.I’d appreciate a call from you or a quick email response. I’m faced at this moment with Oil and Gas Revenue check detail statements from an extended time back.
Just what exactly is needed to be retained?
Any of the data?
Year end statement from each operator?
And what’s to be gained by this data?
Please don’t tell me to scan all documents because that’s just not feasible. I need an efficient solution and soon because I’m working on this project right now and it’s away from my home town.Thank you,
Margaret Ann
Listener Question #3
Dear Matt
Hi there. I just discovered your podcast recently and am impressed on all the aspects of oil and gas investing you’ve covered in the past 5 years. I’m in a situation that I will eventually be earning the right to participate as a non-op in units being permitted in the Utica. I know there is a robust secondary market for people wanting to sell some or all of their non op positions in AFE’s. Could you dive into what a typical deal could look like from a seller’s perspective. Such as what is a range of price per acre that seems to be paid. Royalty reservations, etc.
Thanks, Nate
Listener Question #4
Dear Mr. Sands,
I have a property description question. Our inherited mineral rights in Texas are described in metes and bounds but we continue to receive leases referring to abstracts or units (Sangster Gas Unit, for example, in Harrison County, TX). How can we convert from metes and bounds to the new property descriptions?
Thanks,
Mary
Listener Question #5
Mr. Sands,
My name is Gene Richmond and I’m a mineral rights owner. My family has over 80 acres of mineral rights in the “Haynesville Reservoir” in the state of Louisiana. I need help understanding what does this mean and how to investigate this situation. If you can provide any assistance or point me in the direction where I can solicit assistance I would greatly appreciate it.
Gene
Listener Question #6
Hi Matt and Justin,
Listening to your great podcast from Sweden. Thanks a lot!
My lawyer was just going to file a petition to appoint me personal representative and successor trustee for my late aunts estate where my uncles mineral rights to 40 producing acres were going. However just heard of OK SB212 that crushes what I for 3 years have been researching and doing due diligence on with different lawyers. As a nonresident alien I now might not be able to register any deeds in OK so the title shift to my aunt’s estate could be impossible. There are also 4 other beneficiaries who will not be able to collect their shares. As I understand it even if another of the beneficiaries would serve it would not be possible to register a deed for title shift from my uncle to my aunt’s estate, so the minerals can’t be sold which would be necessary in order to file a deed in Oklahoma. Catch 22!
Strangely there is no law preventing the ownership per se but filing a deed is impossible.
Do you have any news if there are any amendments in sight? Or possible workarounds?Kind regards
Robert
Listener Question #7
Matt, how can you determine if the amount of the paid royalties is accurate? We sold the land but kept the minerals and the leases have been traded about by different entities. We were in a party with about ten other people and now all of the leases aren’t even being listed on the payout sheet. Just got the tax notice and the taxes are higher than the amount we received from the gas leases. Also why are we paying taxes on the gas leases when the land owner is paying on the same property?
Anna
Listener Question #8
Enjoyed the session on late royalty payments. Just one thing I think y’all missed on resetting the minimal threshold for royalties to be paid; maybe I just did not hear it. I think the most important reason to reset the minimal is not to get the small amount of money, but it is to establish and continue contact between both the royalty owner and the company paying the royalty. I know that there have been wells in the past that were “forgotten” because there was no regular communication via a royalty check. Even a year is too long in some situations. Some companies will not even pay on an annual basis if the amount is below $10. Just a comment to consider for
FYI, we have interest in about 120 wells in Arkansas and Louisiana, get payment on some each month, some once or twice a year, some no payment for a long time even though producing, and some not producing but held by production of other wells. In some cases, interest has so many zeros after decimal that rounding keeps payment below zero! Working through your Mineral Management Basics course but slow in getting it completed. Thanks for all the efforts to educate folks. I am trying to educate one individual currently that signed a lease that said 160 acres gross, and trying to convince him that his net mineral acre figure is only about 0.3 acres. Got a long ways to go!
Allen
Resources Mentioned in this Episode:
Mineral Rights Education
- Mineral Management Basics Online Course
- National Association of Royalty Owners
- 1-on-1 Coaching with Matt
Books
- Never Split the Difference by former FBI Hostage Negotiator Chris Voss is THE book on negotiation.
State Specific Info
- MRP 90: Haynesville Shale Overview (Texas and Louisiana)
- OK SB212 | 2023 | Regular Session | LegiScan (Oklahoma bill that prevents ownership of land (including minerals) by non U.S. Citizens).
How to Make Sure You are Getting Paid Correctly
- MRP 3: How to Calculate your Net Revenue Interest in 3 Simple Steps
- MRP 97: How to Audit Your Oil and Gas Royalty Statements
- MRP 224: What to do About Late Royalty Payments
How to Negotiate a Lease / Surface Use Agreement
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