Passing The Legacy Along – Interests in Oil, Gas, & Royalties
For many people who have inherited producing oil and gas interests and royalties, there is a great sense of continuity and pride of ownership. They are perhaps the third generation to maintain and manage family oil, gas and mineral interests first acquired by a Grandfather or relative, who accumulated various royalty and overriding royalty interests through hard work over many years.
Dad or Granddad worked hard in the oil patch, survived a depression and the war years, through times of low prices and high. He proudly passed the rewards of his cunning, intuition, stamina down to his family. His hard work and efforts in acquiring minerals, leasehold interests and a variety of other types of interests that a working oil man might assemble, through a lifetime of work reaped consistent royalties and bonuses for years. Fast forward fifty years and the progeny of those early oil and gas pioneers still feel a family connection through ownership of oil and gas interests. In fact, they might feel it a duty to hold onto and maintain all of the properties, diligently track frequent changes made between paying companies, devise a schedule to insure that no ad valorem taxes are missed and properties lost through tax sale and track the activity of any non-producing minerals.
Sometimes however, the task of managing often dwindling and naturally depleting assets is fraught with escalating challenges. The ongoing prospect of reconciling all the royalty payments with year end 1099’s, keeping a watchful eye on ad valorem property taxes which invariably seem to be delinquent, negotiating fair and reasonable mineral leases and sorting through the complexities of Operator’s Joint Interest Billings, where working interests are owned, can very easily be overwhelming.
Sometimes the burdens of managing producing and non-producing mineral and royalty interests outweighs the nostalgic reasons a family member continues to hold onto them. This may be particularly true where the interests now produce a mere fraction of what they once did. If you feel that the time has come to consider divesting yourself and reducing what may have turned into a mountainous workload, or if the time and the effort required seem disproportionate to the income and benefits derived from your oil and gas properties, the time might be right to sell.
After talking with many heirs and descendants who struggle to keep track of everything, they begin to feel that they are on a continuous treadmill of work and covered up by an avalanche of paperwork. Only you are capable of determining if the time is right for you to sell your family oil and gas interests. If you are considering the possibility of selling, let us offer you a fair and expeditious way to pass along the burden of ownership, while maximizing the financial benefits not only to yourself, but your children and grandchildren as well. Ultimately, that is what your father or grandfather worked so hard to achieve.
Russell T. Rudy Energy, LLC, specializes in (among other things) buying scattered producing and non-producing mineral, royalty and overriding royalty interests. We are not brokers and appreciate the sentimental aspect of inherited oil and gas ownership. We have always believed that royalty and mineral ownership is a particularly valuable long term asset despite periodic downturns such as our recent free fall in oil prices.
We cannot presume to tell you whether or not the time is right for you to dispose of your family’s oil and gas properties. We are here and happy to discuss the possibility of sale with you or your legal representatives. If you are concerned about the potential costs of multi-state probate, the significant legal expenses that can be incurred by your estate should you own properties in many jurisdictions at the time of your death, then it might be time for you to consider liquidating this valuable asset.
Russell T. Rudy Energy, LLC, is a third generation royalty acquisition company that never resells or brokers out properties that we acquire. We have acquired many interests owned by proud descendants of oil and gas mavericks and maintain those properties and keep them intact to this day. We do not “cherry-pick” the best properties while auctioning off repackaging the interest for resale like some of our competitors. I have been buying producing oil and gas interests for nearly thirty years, and the roots of our company date back nearly 100 years to the founding of a little oil and gas company in the West. Combined with decades of experience between myself and my partner Petroleum Engineer, John Pepper, we have seen just about every kind of interest in every producing state and county. If you think it may be time to consider selling, we will sort through your stacks of division orders, mineral or royalty deeds, check stubs, ad valorem tax bills and working interest JIB’s, to determine what is currently producing and what has been plugged, abandoned and depleted. Let us do the footwork required to evaluate potential title deficiencies, method of transfer, and scope of the work required to divest your interests.
We will not charge you for our time, but will advise you if there are title deficiencies requiring the work of a competent oil and gas or probate attorney, before you can pass good and marketable title to us. John and I are ready, pleased and excited to be entrusted with your family oil and gas properties and look forward to making you a fair, reasonable and timely offer. We may be contacted toll free at: 800-880-0940 or dial us direct, for Russell Rudy dial 713-784-9700 or if your interests are primarily working interests call John Pepper at 713-961-4205. Our primary fax number is: 731-784-9735
You might also like to visit us on the web for further information, instructions or forms at: www.oilandgasminerals.com.