Anyone receiving a leasing offer, BE SURE the math works out!! Companies will many times make errors here.
My situation is I am being offered $2000 per acre for 5 acres in Pleasants County. The $2000 times 5 acres means a TOTAL bonus/lease rent should be $10,000.
I have 4 heirs in my direct line, 7 heirs from an aunt. There is one other heir from a great grandmother's line. Total heirs 12.
The 4 in my line have a 1/2 share of one acre, or a 0.125000 share. The 7 from my aunt share .071428.
The other heir has a full share as she is the only heir. Our offer is $250 each. The other 7 $143 each.
The full share is $2000. For a total of $4000. Where is the other $6000??
4 times $250 = 1000
7 times 143 = 1000
1 times 2000 = 2000
Finally with 3 acres without heirs, how does this affect my royalties??? Am I still only entitled to 0.125000 on all 5 acres???
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Let's say the great grandmother had 5 children, A, B, C, D, and E. A had one child, who had only one child. That would be the one offered the $2000, for 1/5 (20%) interest of 5 acres, or 1 net acre.
B had 2 children, the parent of Mr. Mason and the aunt of Mr. Mason. Mr. Mason's parent had 4 children, and the aunt had 7. They all share 1/5 (20%) interest of 5 acres, or 1 net acre. Mr. Mason and his siblings each get 1/4 of half of that 1/5, or 1/40 of 5 acres or 1/8 or 0.125%, and the aunt's 7 children share half of that 1/5, or for each 1/7 of 1/10, or 1/70 of 5 acres , 1/14 = 0.01429 or $143. So far the figures make sense.
Child C, D, and E we don't know about. Perhaps they are currently unlocatable, but the company plans to keep looking. Perhaps they died with no heirs and no wills. Probably that would mean that their 3/5 interest would be divided among the remaining heirs of A and B in a similar way. Or perhaps they died with no children but wills, and left everything to some charity. Or something. So there is not enough information to determine.
I think it is a fair question to ask the landman about those other 3 children, but there is not enough evidence to say that the known heirs are going to get more of this. It would be illegal for the company just to keep the 3/5 interest for itself, so they have to do something to figure this out.
Don't add to the info, there are no parents or grandparents alive. My great grandfather has 12 heirs alive. 4 in my line, 7 are cousins in my line. #12 is my great grandfathers daughters heir.
No parents or grandparents to worry about.
My grandfather had 5 kids, 3 died without any heirs, my mom has 2 heirs, me and my brother. My aunt has 2 heirs, my 2 cousins.
My grandfather's sister has the 7 heirs.
My great great aunt has one heir.
That is where I get only 12 heirs.
Remember - everyone has an heir. If you leave no direct descendants your share goes to others in the family, assuming there's no will. If there is a will, then anything can happen. Property titles don't follow bloodlines automatically. Until you look at every will from your great-grandparents on down, you can't really be sure who ended up with what.
Sounds like your grandfather and his sister had an aunt (the one whose heir gets the $2000, or 1/5 interest). Your grandfather and his sister share a 1/5 interest, another $2000.
Sounds like your great great grandparents (the parents of your grandfather and aunt's parent, and of that great great aunt) must also have 3 more children, and it is that interest that you have not been told about.
You could ask the landman about it. It has to go somewhere.
Thanks to all who have replied. I just have a problem allowing heirs in my line all 11, to sign a lease agreement for 5 acres and get paid for only one acre. If the landman isn't ready to make a fair offer, then just leave us alone. I am just advising everyone this is how BB Land operates, beware of what you sign!! I can afford to wait for a fair offer.
Yes at $2000 an acre that is not a good offer no matter how many acres.
$2,000 an acre signing bonus is a very good offer. And yes it is per net acre. However, they will usually go for a minimum of $500/lessee.
Maybe a good offer to you!! You can have it!! I told the land man a flat "No". they decided to not drill on my property. I know of only one heir in my line that signed.
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