Why Are My Royalty Checks Less than Grandma's?

Ever wondered why your oil and gas royalties are so much lower than your parents, grandparents, or great-grandparents? In this video, we will discuss the reasons behind this phenomenon.
In short, today's mineral owners own a fraction of what their parents or grandparents owned, the wells may be less productive, and commodity prices may have changed.
For more information on oil and gas mineral rights or request an offer, visit Blue Mesa Minerals at bluemesaminera....

[@russcali4138]

This is the best channel I've found on Mineral RIghts

[@BlueMesaMinerals]

Thank you for the kind words. Feel free to suggest more topics - I love talking about mineral rights.

[@jakobh6257]

Great info, thank you!

[@alexwhatley1190]

Thank you for all the amazingly informational videos. I just came upon a 1 eighth interest of mineral rights on 50% of 100 acres of land. Just outside of Lake Von NM. When I decide to do business with an oil company do I have to engage with the other 7 members of my family to use my mineral interests? Likewise with them?

[@DannahBlumenau]

If your portion of the mineral rights are in your name, you should not have to engage with other family members to lease your portion. If, however, the mineral rights are in the name of another family member (such as a parent or grandparent) and the minerals have not officially been divided among the heirs, then you might need to coordinate probate or whatever is needed to transfer the mineral rights. This is a simplistic answer. In reality, there can be other situations, such as owning an NPRI or having the minerals owned in a trust, that would impact the answer to your question.

[@alexwhatley1190]

Thank you so much. That is exactly what I needed to know. The rights have been divided and my 1/8th interest is in my name.@@DannahBlumenau

[@DannahBlumenau]

@@alexwhatley1190 Great! I'm glad I could help.

[@debbungartz]

Your videos have been very helpful. Do you have any information on how to administer Life Estate interests once the owner passes away? I am the trustee of a trust that includes life estate interests and I don’t know what to do to get the county to stop billing the trust for the property taxes.

[@BlueMesaMinerals]

I'm not an attorney, but feel free to call me if you want to chat about this - my number is at the top of my website (bluemesaminerals.com).

[@yasinnabi]

this is for sure a great video, and I enjoyed watching ! subbed and liked ! a fellow creator,,,.

[@BlueMesaMinerals]

Thanks!

[@calvinm1866]

Nice video. My royalty check was $0.00 this month! I've never seen that in my life.

[@BlueMesaMinerals]

Perhaps the well was shut-in or plugged (maybe due to a mechanical issue or perhaps because they have drained the reservoir)? Usually, you don't get a check if no royalties are owed. It would be bizarre to see a check for $0.00.

[@calvinm1866]

@@BlueMesaMinerals Agreed. I checked the website that posts the statements again today and the $0.00 dollar one disappeared so I'm hoping it was a mistake.

[@BlueMesaMinerals]

@@calvinm1866 That could be. You can always contact the operator and ask them for information about the status of the wells.

[@calvinm1866]

@@BlueMesaMinerals I thought about doing that. I've contacted them before and it seemed they didn't know anything. I did get an email earlier this month saying the gas balancing is being switched over to another company.

[@BlueMesaMinerals]

@@calvinm1866 Oh, that makes sense. Sometimes it takes them a month or two to get that worked out. Keep an eye on it, and don't hesitate to call the operator back if you don't start getting checks again. The squeaky wheel gets the oil.

[@mccoyji]

Prices also went down

[@mccoyji]

And the taxes eat up almost all the net.

[@BlueMesaMinerals]

The taxes shouldn't eat up the net, but your deduction might. Some operators take huge deductions (a large percentage of your royalties). Operators almost always try to get mineral owners to pay for "marketing" costs through deductions, but it is sometimes possible to negotiate for a cost-free lease.

[@shackeats7271]

Do you know anyone in Arizona that I could speak to with about my inherited royalties?

[@BlueMesaMinerals]

Not really. There isn't much oil or gas in AZ - if any.