We were just contacted about a deed our father left us for "all oil, gas, mineral on or in and under that may be produced." I have done lots of research, was able to locate the well, operator number etc. It is producing. My question is that the landlady's fraction of percentage owned are very unusual and I have been unable to locate any documentation that substantiates her statements that the leasing rights were sold to a third party. There is NO paper trail to substantiate this claim. I have researched Howard County records high and low, Info at texasfile.com. spoken to county clerks office in howard county. The railroad commission. I was able to find anything other than a lease that was done in 2012 where some person has leased our portion along with his portion out to Apache, but as far as any documentation giving him this right I am unable to locate. Can anyone tell me if there is anywhere else I could look to find such information that would give him this right. Please Thank you in advance for any help.
Kristie it is possible the landman is right. However, based on what you've written it doesn't seem to be the case. Begin by politely asking the landman (lady) for;
1. A copy of the document where the leasing rights were sold. If it exists she should be able to show you and this would expedite you finding your answers. If she can't or won't provide then it raises red flags. It might still exist but you are not bound by what was not recorded and cannot be produced.
2. The breakdown on how they calculated your decimal interest. This will tell you what they show for your interest (net acreage, royalty, etc...). These figures may be correct. If their figures are not correct, seeing their calculation may help you find where the discrepancy exists.
Though your answers are in the Howard Co. courthouse. If a document exists, and if they claim it limits your interests, it MUST be recorded there. A claim your executive rights were sold is meaningless if it is not on record.
It sounds like you have a fundamental understanding of the business. So if possible, go back to the Big Spring courthouse and look again following the chain of title from the beginning until it reaches your hands. If you go make copies of any deeds, assignments, and leases. If you can't find it, and they won't provide it yet they still claim it exists, you may need a lawsuit to force them to correct it. Good Luck.
Eastern MT is correct. Look for wording that someone else kept the executive rights in a deed somewhere. You have to look very carefully at the wording of this instrument when you find it. Search the term “executive rights” in the upper corner, and you should find many threads on this topic.
Thank you for your prompt responses.. I appreciate your input and assistance. I will await the land lady's response to my request for the copies of the paperwork that sold our rights to the lease (supposedly). Thank you so much!
I have continued with my research and as of yet have been unable to find anything that shows the leasing rights to the property have been sold. I have found the person that has taken it upon himself to lease the entire block out. Nonetheless, I am unable to locate the documents that would give him this right. I have our deed with legal description. I have his lease with the legal description that includes our west half. I have found the production results for the well. Why is it that I can not find anything showing verification that the rights to lease the west half that we own were sold? Land lady hasn't produced such a document.. Can anyone recommend a professional either attorney, landman, informed individual that can help us? Either the land lady has something proving the land leasing rights were sold, or she doesn't correct? It was either filed with the courts or not, correct? It seems pretty cut and dry unless she's bluffing correct? Should she be unable to produce proof the leasing rights were sold, and in the meantime all of section 10 block 31 were leased out even though we own the west half (365 acres), what are my best options to rectifying this situation? Any help/suggestions is so very much appreciated..
Kristie, It is pretty "cut & dry". If they claim the document exists, it MUST have been recorded in the Howard Co. courthouse or it isn't valid. Either someone previously "sold" those leasing rights, or someone reserved them when they sold the minerals or land. The catch is that may have been 10 years, or 70 years, before your Dad acquired his interest in the minerals. As a result ALL the records must be reviewed to know for sure.
The landman / producing oil company should provide you with a copy of this document (or cite the document #, or book & page, so you could look it up). There is no valid reason for them to withhold that from you, or to withhold their calculation as to how they determined your decimal interest.
As to the other party leasing "your" west half of Sec 10; Are you certain you own the entire west half (320 net of 320 gross)? It is common for different parties to own a portion of the minerals under the same acreage. In which case, it is possible that other party was leasing THEIR 40 net acres (or whatever amount) under that west half where you own a portion too (but not the entire 320 net). Typically their lease will not state how many net acres they are leasing, so it may appear they are leasing all of them. Your Dad's language leaving you "all oil, gas, minerals" is standard language convey "all" that he owned, not necessarily "ALL" the minerals under that tract.
If you're unsure of how many net acres you own under that west half, this information is also contained within the deeds recorded in the Big Spring courthouse. Perhaps you own a portion, perhaps you own it all, I have no idea. That is where 'running the records' from the start up to the present provides the answer.
It is pretty "cut & dry" once you're certain you've fully searched the records. Although it is frustrating, I would try one last time to obtain this info from the landman. You don't want to be strung along, and that may be what is happening. Though, if they exist, it would be the easiest way to obtain the records you need. However you do need a lawyer if they fail to comply (and possibly even if they do). Unfortunately I don't have a TX attorney recommendation. Hope this made sense. As always, Good Luck.
UPDATE!!! HELP!!! Now the landlady @&*! Is refusing to provide a copy of any deed to substantiate her claim. In the meantime i have done texasfile.com and researched extensively, only to discover there are warranty deeds without guarantee. This man’s name keeps showing up ratifying leases and getting paid bonuses etc but i can’t find the ‘paper trail’ on him. He kind of just shows up on lease and contracts as of 2010? I’m confused? Any advise much appreciated!
Kristie, Pete is correct, and it sounds like he got the executive rights somewhere back up the chain of title. Keeping looking for older deeds. He could have inherited or bought executive rights that were carved out 100 years ago.