I received a small royalty payment in December and then a Division Order in January. I was told that my share (large family) is 1/384 and I know it's 1/64. My father inherited a 1/32 share and my brother and I inherited equally or 1/64 each. " I requested a copy of the the oil company attorney's title opinion. Their reply was that "I am unable to furnish title opinions to anyone other than a working interest partner." These mineral rights are in North Dakota. Are mineral rights owners in ND entitled to a copy of the oil company attorney's title opinion or not?
Brita, the title opinion is the intellectual property of whoever paid to have it done. If it's worthwile to you at all you need to have your own interest calculation which will be costly. Perhaps you can find others to share the expense because if you are being shortchanged, likely someone else is also being shortchanged. Brita, in short, the answer is no, you are not entitled. If you actually took them to court you would probably get to see it at some point after spending tens of thousands of dollars. Brita, tripple check everything you can before you hire someone. Make sure that some undivided interest % wasn't sold off in the past and that your father inherited 100% interest in the 1/32 share. If you have acres that are in more than one drill spacing, the title opinion is for only your acres in that particular drill spacing and your acres in another drill spacing would not count towards this title opinion. I hope this helps.
Brita,
The key to reconciling your interest between 1/64 inherited and 1/384 in the division order may be found in the comparison of gross acres of your inheritance and the gross acres of the producing unit as described by the Division order. Or Mr. Kennedy's suggestion my be correct. Note that the factor between the two is exactly "6".
Gary L Hutchinson
Minerals Managment
Thank you for your helpful reply. Yes, I have acres that are in more than one drilling space so that is probably part of or THE answer! Brita Skarbrevik
r w kennedy said:
Brita, the title opinion is the intellectual property of whoever paid to have it done. If it's worthwile to you at all you need to have your own interest calculation which will be costly. Perhaps you can find others to share the expense because if you are being shortchanged, likely someone else is also being shortchanged. Brita, in short, the answer is no, you are not entitled. If you actually took them to court you would probably get to see it at some point after spending tens of thousands of dollars. Brita, tripple check everything you can before you hire someone. Make sure that some undivided interest % wasn't sold off in the past and that your father inherited 100% interest in the 1/32 share. If you have acres that are in more than one drill spacing, the title opinion is for only your acres in that particular drill spacing and your acres in another drill spacing would not count towards this title opinion. I hope this helps.
Thank you for pointing out that the factor between the two shares is 6. I should have done the math myself. My brother is deceased but left 5 children & I got approximately the same royalty that my nieces and nephews received. I suspect the oil company's attorney mixed me up as one of my nieces and nephews. The replies the two of you gave me helps me unravel this puzzle and how to possibly solve it. Again, thanks to you both!
Gary L. Hutchinson said:
Brita,
The key to reconciling your interest between 1/64 inherited and 1/384 in the division order may be found in the comparison of gross acres of your inheritance and the gross acres of the producing unit as described by the Division order. Or Mr. Kennedy's suggestion my be correct. Note that the factor between the two is exactly "6".
Gary L Hutchinson
Minerals Managment
No, as a general rule they are not entitled to have a copy of the Title Opinion. Those are very expensive documents that operators rightfully guard closely. Having said that, I have seen a few leases wherein a clause was inserted GIVING the Lessor the ability to inspect a Title Opinion, but those are rare exceptions to the rule.