Many of the questions and posting in this forum originate from new owners who have recently inherited oil and gas rights. If this is you, then here are a few tips about where to start.
Determine whether an update to title is needed.
If you recently inherited oil, gas, and mineral rights, then something will need to be recorded in Colorado to update title. If title was held jointly or there is a beneficiary deed of record, then a death certificate will generally only need to be recorded. In Colorado, oil and gas mineral rights owned by a single owner do require probate. If the decedent was out of state and a probate is opened in the home state i.e. Nebraska resident with Colorado oil and gas interest and probate is open in Nebraska, then take advantage of Colorado’s ancillary process to efficiently (time and cost) transfer title. If that is not the case, then there are three other probate processes to consider: (1) process under CRS 15-12-1301, et. seq., (2) informal probate, or (3) formal probate.
Verify your ownership, lease status, and royalties owed.
Once you’ve updated the title, consider some title work to ascertain what you own. If you have a lease offer, consider asking for the title work as a condition of leasing. If you don’t, then you might consider hiring a landman or doing some work online through the Clerk and Recorders website to try and figure out what’s out there or what you own. This may also yield some informant about whether your predecessor had signed a lease that your interest is likely subject to. Additionally, it is also important to check production records with COGCC to ascertain if there are any royalties in suspense for which you should be paid. Be sure you consider not only the wells located in your ownership area, but other surrounding wells that may pool your interest. Here’s some links to using the COGCC website - COGCC How To's
Complete your own Estate Planning. This topic is discussed in an earlier blog posting in more detail and can be accessed here - Estate Planning for Oil and Gas Mineral Owners
Jenna H. Keller, Esq.
Attorney at Keller Law, LLC. (www.kellerlawllc.com)
Jenna H. Keller provides legal services to farmers, ranchers, rural property owners, and severed mineral interest owners in the areas of estate planning, natural resources (oil, gas, wind), real estate, and water in Nebraska and Colorado.
The information is for general information purposes only. This should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided.