Hello, from Kern County California. My client is trying to sell his house on 1.7 acres, and we were surprised when the title pulled up a “memorandum of paid-up oil and gas lease”, and also “assignment of overriding royalty” by “Prize Energy Resources” and “Devon Energy Production”. There has never been any activity on the land, and no oil production in the nearby area. The amount paid was $1, and $10!! Now we are having trouble selling, the leases don’t have any expiration dates, and I cant find much on these companies… Any ideas how to get these off title so we can sell??
suggest you contact an attorney to get it cleared up. Most “memorandum of lease” documents that I have seen have a start and end date on them. You may have to contact Prize and Devon to get an official release of lease. You may want to double check and make sure the client wants to sell the mineral rights with the surface or whether the client wants to keep them.
Three points. The fact that the document says $10 and other valuable consideration doesn’t mean only $10 was paid. If you look at every deed and oil and gas lease in the state of Oklahoma, 99.999999% of them will say $10 and other valuable consideration. Even house sales/deeds say that. Most sales, at least in Texas and Oklahoma are not put off by oil and gas leases. It is very common, and dealt with in normal fashion. As to not finding much on the companies, Devon has a 53 story building in the middle of Oklahoma City, and is very prominent in the community. Prize Resources is a subsidiary of Cimarex, who is in tulsa and Denver.
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