When you get a mineral appraisal the appraiser needs all the info they can get. The more the merrier. And it needs to be organized. I basically cannot deal with a huge banker box of unsorted check stubs, often duplicated, etc.
Organize the information. This is what I need.
A LEGAL DESCRIPTION of the property being appraised. That may be on the oil and gas lease (OGL) and I want that document too. However, some leases are not recorded; rather an assignment is recorded stating that it exists. That is a way companies attempt to hide what the terms are of their lease. They tend to do that when the lease offers a bigger royalty that your neighbors may be offered, but that’s another issue. YOU should have a copy of that document. It is a legal binding contract.
A copy of the DIVISION ORDER for every well drilled that impacts you (and that means even those which do not lie on your property).
A two or more year history of EACH WELL INCOMES is required. The check stubs are useful in calculating what we call decline curves. Please organize the check stubs for each well and each party that is paying you (some wells mean some checks may come from 2 or more partners)…The check stubs should match the month of production, not the date of payment (which could be months later.)
While Production figures are available on line from some states, in states where such info is not available, the check stub is the only or the very best source of information. When I have to buy such data (when even available) expect your bill to increase dramatically.
Non-producing wells are more difficult to value in many ways than are producing wells, especially in states where mineral deeds are not transparent and contain deed stamps…which limits same to maybe Arkansas,Oklahoma and a few others.