Inherited Mineral Rights, how to find existing leases

T&P RR CO T4S Blk 41 sections 19,20,21,28,29,30.

I recently inherited mineral rights in the above sections (along with some others), and I am in the process of gathering information about my holdings. My goals, aside from getting ownership transferred to me with the known operators and the counties (both in progress), include making a spreadsheet of all of my holdings, understanding and verifying property tax and royalty statements, and searching for what other leases that might intersect with my mineral rights to see whether there are other operators that I might need to contact . It is towards this latter goal that I am posting today.

I am new to all of this, but so far I have developed a series of mental models of how to proceed. I’ll speak at the section level, though I understand that it might make more sense to speak at the abstract level as some of my rights span counties.

My first mental model: I imagine a large chessboard where the squares correspond to survey sections. My task in this mental model, Using various tools, including the State of Texas’ GIS mapping tools, was to look for producing or shut-in wells, in the form of dots for vertical, or lines (toothpicks) for horizontal which intersected any of “my” sections (those for which I held mineral rights). If a dot or toothpick did intersect on of my squares, then I’d check the operator, try to contact there owner-relations department and perhaps ultimately a division order analyst to see whether my late mother was entitled to any royalties under some existing lease there (or even whether she already had an account). If so, then I’d work with them towards a transfer order. This was under the assumption that if a horizontal well passed under one of “my” sections, then I’d probably be entitled to royalties under some lease. Under this model, I could at least look up the lease ID associated to the wells that I’d find, and maybe somehow get a hold of them.

I actually started my research on some inherited section-rights in Glasscock county. My original mental model got disrupted when I found that I had rights in some sections that weren’t producing but that were tracts in a unitized lease there. Fortunately, a Division Order Analyst at Apache was able to provide me with an Appendix from the lease which described the tracts/units. This was of great help in decoding and verifying some of my holdings in those sections. I refined my mental model to the point where the question became: “How do I find existing leases that involve “my” sections?” (including pooled or unitized leases)

Is this a reasonable way of looking at the task ahead of me, or am I under some misconceptions or overlooking something? If it is reasonable, then my question to the forum is: Is there a way that I, on my own, might begin to discover leases, including pooling or unitization agreements, given my starting point of: GIS data, royalty statements, deeds for certain sections, property tax statements?

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Along with checking RRC’s map for wells in Sections where you own interest, before contacting the operator pull up the unit plat for those wells.

Since you’ve apparently figured out how to determine the current operator from RRC’s map maybe you are already doing that, but if not you can access the drilling permits for those wells through the “Identify” function (I in a circle) at the top of RRC’s GIS map. Click “Wells”, then the well you are interested in, then select Drilling Permit. The unit plat will be among the attachments listed on the last page of the permit application. The plat will show the boundaries of original drilling unit that was designated by the company who drilled the well. Those boundaries sometimes change after a well is completed and in that case you might have to check the County deed records to see the final producing unit plat that got recorded, but the preliminary plats attached to the drilling permits are a logical starting point in determining if a well included acreage where your family owns interest.

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Thanks very much for this advice: finding the plat information is quite helpful.

In applying the above techniques to a particular example that seems complex to me. In T4S Block 37 I have rights associated to all of Sec 22,23,26,34 (Glasscock/Midland). I noticed that on the Apache royalty statements I was receiving payments for 13 “Schrock” tracts associated to Weather Man C 3HA (API# 173-38622) SCHROCK Tracts 2-9,11-12,16-18. When I look at the Plat (found by carrying out your instructions) I see a drawing of Tracts 1-5 (out of 19, with mention of APACHE but not SCHROCK), intersecting sections 13,24, and 25 (but not any of “my” sections). It was only after an Apache Division Order analyst shared the tract list/unitization description (excerpt included below) with me that I could begin to understand why my interests in apparently unrelated sections entitled me to a portion of that well’s production royalties. Some initial questions arising from this include:

  1. how might I discover other such unitization, pooling agreements/leases that might involve some of “my” sections, since it is apparently not as simple as researching wells that actually touch “my” sections. Another way of posing this question: how might I have discovered the above without the help of the Division Order Analyst, given that I am not in possession of the lease.

  2. even in simpler cases (non-pooled/unitized) where some part of the well, vertical or horizontal actually touches one of “my” sections, how might I go about getting a (possibly partial or redacted) copy of the associated lease?

  3. When there is unitization such as in the Weather Man case above, do the individual leases for each well (e.g. Weather Man A, B, C, D, Wicker Man A, B, C, D) describe the unitization, or is there an additional lease that also must be found? I was unable to find (publicly) a plain “Schrock” lease (which is how the analyst referred to it) that described the all the tracts and percentages, and I was wondering if such descriptions would actually be found in each individual well lease (or lease for groups of wells?).

Thanks

Excerpt: UNIT TRACT DESCRIPTION OF SUBJECT 4,640 ACRES 4,640 acres, more or less, being the Southwest quarter of Section 13, and all of Sections 22, 23, 24, 26, 28, 34 and 38, all in Block 37, T-4-S, T&P RR Co. Survey, A-454, A-968, A-1239 and A-1238, Glasscock County, Texas, and A-496, A-893, A-553, A-895, A-889, A-896, A-859 and A-858, Midland County, Texas, and more particularly described in nineteen tracts as follows:

Hi, You should be able to find out information about your inherited interests by using either courthousedirect or countyrecordswebsites where you can search for deeds, leases, unitization, pooling, and other related O&G documents related to your mineral interests.

Once on either of these websites, you can search by County and then enter in the name of your grandmother and or her husband who you inherited the interests under the input “parties” or “grantor.” I usually use parties because there could have been a transfer of ownership. I also change the default to “contains” vs “exact” just in case the name may have been entered in differently than you might have expected.

This search may bring up a multitude of results based on the last name - but on Courthouse Direct - you will be able to see legal documents based on location, tracts of land more easily than on on the County Records site. I use both because I can locate items easily on Courthouse Direct, finding the Vol/Bk and Page where the document is located and then go to the County Records site to search for the specific document. County Records has a preview feature that allows you to review the document to see if it is relevant to your search before you download it. I also find that this site is less expensive and easier to search/check out than Courthouse Direct. Courthouse Direct has a much better history however, so it will go back to Deeds issued in the early 1900’s. The image may not be available so you may have to contact the local records office to request a copy of these types of documents.

Once you have this information, you can cross reference it with what information you already have to see if you have current information.

I also recommend that you engage an attorney if you have interests in New Mexico as O&G leases are treated differently and a will must be probated correctly to transfer ownership correctly.

I also recommend searching Claim it texas which might include royalty money held in suspension while you are having the ownership transferred.

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Thank you Dusty. In my few years of looking at the maps and accompanying information, I did not realize that the corresponding Plat was available.This will clarify a lot of the info I have especially in trying to clear up some unclaimed property with the great State of Texas. Thanks again!!

Hi, I believe I located the document you were hoping to find. It is Vol 340/PG 553 in Glasscock county records.