Hello I am unsure of what I need in order to prove mineral interest ownership. My family has had mineral interests in Ward Cty since 1930s and it has been passed down and now some to me. Sometime in the 70's the family signed a collective agreement with the neighboring mineral interest owners agreeing to share all royalties. No one can seem to find a copy of the collective agreement so that I can see what it says. Jetta is our producer. They are sending statements/checks based on the collective agreement. The estate lawyer for my deceased relative has filed papers with Ward Cty that are different than what the family's original (subsurface) acreage shows.. based on the division orders from Jetta. My father says that the documents he has filed are worthless because they don't show ownership of the original acreage but a conglomeration of property ownership. The lawyer insists he is right. Does anyone know if signing a collective royalty-sharing agreement with ones neighbors is a form of ownership - does it alter my ownership of the original acreage? It seems to me that the estate lawyer needs to file papers that show the original subsurface acreage mineral interests upon which the collective royalty-sharing agreement is predicated. The lawyer is refusing to discuss it and insists he is right. Since he is the lawyer for the estate of my deceased relative and I am a beneficiary I am not sure what my rights are here. This is causing a lot of tension with the family as no one seems to know who to believe.
Thank you.
Here are my best pieces of advices to you:
Concerning the tension of no one seems to know who to believe:
You never ever trust anyone until you know their angle.
“First rule of business, protect your investment.”
—Etiquette of the Banker 1775
“There is no avoiding war, it can only be postponed to the advantage of your enemy.”
—Niccolo Machiavelli 1502
Ha ha. Thank you for your reply. So do you know what I need to have in order to know that I have been properly gifted these interests? I have been told that going to Ward County to look up my relatives deed won't help. They won't have it. Is there a place to look? Can I ask Jetta for their records or is that a waste of time since they only took over the lease in 2002 or something like that. I have sent away for 2 books from the National Association of Royalty Owners - one that professes to be Mineral Law in a Nutshell.
Do you think I need to hire a Tx oil and gas atty to look into this for me? Is that the best avenue for this? Mainly I don't know if what is listed on the executors "Mineral Deed" as it calls itself, that he filed with Ward County, is accurate as my father does not think it is.
Dear Anne,
I have no idea about anything, since the whole thing was likely done ineffectually from the beginning. If there was a cross conveyance of minerals, then that should be of record. If not, there is no easy way to prove up ownership.
I remember telling an oil company one time, since you have no proof that payment was made on the rental and we have no proof that rental was paid timely, we agree that the lease expired. This is called management. Minerals do not manage themselves. Managing minerals comes with a price. Google Sword of Damocles.
If Jetta is paying, then if you are unable to find an agreement on royalty sharing of record, then perhaps they could help. By the way, this is the first time that I have heard the term "collective agreement" used in this scenario.
No 2 above puts the burden on those who own the assets to see that the assets are managed. No 1 means that there is a dual motivational theory. The reason the family member tells you and the real reason.
No 3 is self explanatory. If you must battle, do it on your terms and timing.
Best
Buddy Cotten
Ahhh! Confucius and his views on Problem Solving, i.e., A man who has committed a mistake and doesn't correct it is committing another mistake.
An "Excellent" retort Buddy!
Pat
Anne,
Send a certified letter to Jetta asking for a copy of this agreement. Buddy is right, it should have been recorded.
Anne,
If you need to view Document's filed at the County Courthouse then you can go to TexasFile.com (cost $2 to view all pages or $1 per page to print) requires minimum $20 deposit payment via Credit Card to view/print Document's.
Thank you very much for this information I am always glad to know online sources of information like this. I am not sure if the courthouse is the place where they keep records of mineral rights deeds? The interests are in Ward County and all I've heard about any kind of recording has been to the Ward County Clerk but I am way new at this.
Robin Ransom said:
Anne,
If you need to view Document's filed at the County Courthouse then you can go to TexasFile.com (cost $2 to view all pages or $1 per page to print) requires minimum $20 deposit payment via Credit Card to view/print Document's.
Thank you very much. I will do this.
Wade Caldwell said:
Anne,
Send a certified letter to Jetta asking for a copy of this agreement. Buddy is right, it should have been recorded.
What you are referring to is usually called a Stipulation of Interest Agreement. They are legal if properly executed by the rightful owners. It should be filed of record in the county where the land is located. That is probably why Jetta is sending payments based on what you are calling the collective agreement.
Thank you very much for your reply. So you are stating that the agreement should be filed in Ward County. That would be very helpful. I will write to them. Or call. Hopefully they will be willing to look this up.
Yes, Jetta is sending payments based on that agreement and that may be another good starting point. Hopefully they can point to the document that the other mineral interest owners signed that is the basis of these payments. It is a maze to wade through for newcomers.
Appreciate your willingness to share your knowledge.
Dave Quincy said:
What you are referring to is usually called a Stipulation of Interest Agreement. They are legal if properly executed by the rightful owners. It should be filed of record in the county where the land is located. That is probably why Jetta is sending payments based on what you are calling the collective agreement.
I think others stated that before I did. I guess that I was just affirming some of it. It can be complicated at times. Hang in there.