Does anyone have any experience with rights in Illinois? Records, databases, probate, etc?
Rick-
http://www.mineralrightsforum.com/profiles/blogs/internet-resources-for-mineral-owners
A couple of databases in this article.
Yes, I am a landman out of Illinois. What do you need?
Wade,
Thanks for linking that. I'm not sure why I didn't think to look there.
The links in the article are broken. I did search around and find these on that parent site.
Illinois GIS http://www.isgs.illinois.edu/?q=data
Illinois Databases http://www.isgs.illinois.edu/?q=iloil/ogdb
Randy,
I appreciate your reply. I hope this isn’t overwhelming.
I manage my families interests. I have a pretty good understanding of the laws, O&G regulatory procedures, and leasing processes in Oklahoma where 99% of the assets are. I also have access to subscription databases for the area. However I was just informed that we own rights in Illinois. I know everything varies quite a bit by state. I even have a great reference book for the laws that cover 20 or so states. But, Illinois is not one of them.
1) Do you have any information about a play in or around Wayne County
2) What are the current common unit sizes and well costs you are currently seeing in the above?
3) Are absent or non-consenting owners pooled or excluded from the well unit?
4) What are the standard royalty interests rates offered or what can be negotiated? In Oklahoma usually 1/8 3/16 are initially offered in a least. However 3/16 is the most common leased rate. In most cases 1/5 or 1/4 are available even if not initially offered. I have been told 17.5% is common in Illinois
5) If pooled, do the non-consenting owners have the opportunity to participate in the well and obtain a working interest? Do the state laws require the operator to carry the WI cost or is it paid up front?
6) Does Illinois recognize a foreign probate? In other words, can I take an Oklahoma probate order and submit to the Illinois county where the property is located along with an executor’s deed to transfer ownership? Or do they require an ancillary probate?
7) How does Illinois handle ownership of a property by a foreign LLC? Our assets are in an Oklahoma LLC. Is registration of the Oklahoma LLC required in Illinois or does only the deed have to refer to the Oklahoma LLC without additional Illinois State registration?
8) The landman is suggesting the use of an Affidavit of Heirship based on intestate succession. An Oklahoma will does exist. I know some states are more accepting of an AoH. In Oklahoma an AoH will usually get you leased, however the “marketable title” issues will often come up when the attorneys give a title opinion. I’ve seen many instances of payment being held on a well in Oklahoma after the landman assured the heirs that the AoH would be sufficient.
9) The will directs it to an Oklahoma trust. I don’t know how Illinois will accept this. So again, there may be issues in conveying it from an Oklahoma trust to the LLC.
10) Can an AoH be ethically utilized in Illinois based on intestate succession? I would think it would need to reference the “attached” will and transfer it per the terms of the will. The will transfer it to the trust which will in turn divided it evenly to the child and grandchildren. Intestate succession will transfer 100% to the child. The child would just transfer it to the LLC which is owned in accordance with the will so all of that is not a problem. However I don’t want to create potential problems in the future using an AoH over an ancillary or summary probate.
Randy Wheeler said:
Yes, I am a landman out of Illinois. What do you need?
Rick:
That is a lot of questions, but I understand, I have the same problem when I start in a new state or area.
I believe that this is the correct information, but this is answered off the cuff. I can so a little research in needed.
my email should be in my profile if you want to send a private message.
There are several plays going on around Wayne County. Wayne Co. has historically been one of the most active counties in Illinois. There is a Shale play that has been quite active, as well as several other plays, The Slick Water Fracs have open up some new activity in several areas of the State.
The unit size would run between 10 acre and 40 acres under standard state spacing rules. Unit size can be increased by having a special spacing hearing with the state.
Non Consenting owners would be force pooled into the spacing units.
15 to 20% is a common royalty, depending on the type of well being drilled.
A non consenting party would be force pooled, you would be a WI owner and would be carried subject to up to a 300% penalty. Or you could participate from the beginning. Normally in a force pooling, a farmout would be offered, but is not required.
A foreign will would have to go through ancillary probate procedure to transfer property according to the will. An affidavit of death and heirship would transfer property by the descent and distribution laws of the state of Illinois. The last ancillary that I had done was 2500 to 3000.00. As you have described the succession, I would think that a ADH would work fine.
I believe that you would need to register your LLC in Illinois. I am not entirely sure of the parameters, but any foreign corp that I work are registered. This can be done at the Illinois Corporation Commission in Springfield IL. You can get a copy of the State of Illinois OIl and Gas rules at the following website http://www.dnr.state.il.us/mines/dog/dog_forms.htm
Let me know if I can be of further assistance
Rick Howell said:
Randy,
I appreciate your reply. I hope this isn’t overwhelming.
I manage my families interests. I have a pretty good understanding of the laws, O&G regulatory procedures, and leasing processes in Oklahoma where 99% of the assets are. I also have access to subscription databases for the area. However I was just informed that we own rights in Illinois. I know everything varies quite a bit by state. I even have a great reference book for the laws that cover 20 or so states. But, Illinois is not one of them.
1) Do you have any information about a play in or around Wayne County
2) What are the current common unit sizes and well costs you are currently seeing in the above?
3) Are absent or non-consenting owners pooled or excluded from the well unit?
4) What are the standard royalty interests rates offered or what can be negotiated? In Oklahoma usually 1/8 3/16 are initially offered in a least. However 3/16 is the most common leased rate. In most cases 1/5 or 1/4 are available even if not initially offered. I have been told 17.5% is common in Illinois
5) If pooled, do the non-consenting owners have the opportunity to participate in the well and obtain a working interest? Do the state laws require the operator to carry the WI cost or is it paid up front?
6) Does Illinois recognize a foreign probate? In other words, can I take an Oklahoma probate order and submit to the Illinois county where the property is located along with an executor’s deed to transfer ownership? Or do they require an ancillary probate?
7) How does Illinois handle ownership of a property by a foreign LLC? Our assets are in an Oklahoma LLC. Is registration of the Oklahoma LLC required in Illinois or does only the deed have to refer to the Oklahoma LLC without additional Illinois State registration?
8) The landman is suggesting the use of an Affidavit of Heirship based on intestate succession. An Oklahoma will does exist. I know some states are more accepting of an AoH. In Oklahoma an AoH will usually get you leased, however the “marketable title” issues will often come up when the attorneys give a title opinion. I’ve seen many instances of payment being held on a well in Oklahoma after the landman assured the heirs that the AoH would be sufficient.
9) The will directs it to an Oklahoma trust. I don’t know how Illinois will accept this. So again, there may be issues in conveying it from an Oklahoma trust to the LLC.
10) Can an AoH be ethically utilized in Illinois based on intestate succession? I would think it would need to reference the “attached” will and transfer it per the terms of the will. The will transfer it to the trust which will in turn divided it evenly to the child and grandchildren. Intestate succession will transfer 100% to the child. The child would just transfer it to the LLC which is owned in accordance with the will so all of that is not a problem. However I don’t want to create potential problems in the future using an AoH over an ancillary or summary probate.
Randy Wheeler said:Yes, I am a landman out of Illinois. What do you need?
Thanks Randy!
That helps very much!!