We learned of it from an unsolicited offer to buy my father out. We decided to pass on the offer, knowing that there must be a reason someone went to all the trouble to locate us and make it in the first place. Now we are trying to learn what our next steps should be. He inherited a .0125 percent NPRI from his mother, who inherited from the Thorpe family. We do have an attorney helping, but I thought this would be another good resource just to learn more about NPRI deeds. We are new to all of this and any advice/direction would be appreciated!
Also, I have one more question. The solicitation stated that the deed my father owns is “non participating royalty interest.” But we have a copy of Thorpe’s will and in it the real property that was given to my grandmother is described simply as “royalty interest.” Is there a difference?
Clarification and more info: It’s 1/5 of 1/16, or 1.25%, not .0125%. The deed was inherited by my grandmother in 1980, and passed to my father in 1992. As far as I can tell, the land began producing oil and gas in 2011. One more interesting piece of information: As of today the person who willed it to my grandmother is still listed as a RI owner even though she died in 1980. Any ideas why this is the case?
If you are not being paid, then the oil company was not informed of the assignments, along with copies of the recorded deeds or probated will. Your attorney will help you fix the title. Oil companies do not search for deaths and assignments. It is the responsibility of the heirs or grantees to notify the oil company in order to get in pay.
Ok, Thank you! We are gathering the certified documents now. I appreciate the help!
Hello, I have a follow-up question. We are in the process of cleaning up the title, and in the meantime have been informed of some things that bring up new questions.
- The Dallas attorney informed my sister that oil companies are only obligated to return arrears for the past 7 years. Is this correct? He also said a claim for everything could be made in court if the amount owed was hundreds of thousands (it is) but we would be unlikely to prevail.
I think we have a reasonable, straightforward case to make for claiming the total arrears:
We learned that the executor never probated or executed the original 1980 will granting a deed to my grandmother, so she had no idea that she owned it. In 2019, someone did probate the will, but did not notify my father (the person also liquidated the other assets mentioned in the will according to public records found in Wharton County - other oil shares, stocks, bonds, and certificates of deposit).
My dad was located this year by a holding company offering to buy his deed, which tells us he could have been located in 2019 (he and my mom have lived in the same place since 1971). He had no reasonable opportunity to exercise his royalty rights until now, and acted in a timely manner as soon as he learned. Does anyone have any experience with a situation like this? What did you do, and what was the outcome? We do not want to waste time fighting a big company over a portion of arrears if it’s a lost cause.
- He also said it’s likely that the holding company made the offer to buy the royalty rights now because new leases might be in the works. Where can I go to keep updated on future activity on this land?
Thanks again for any information or guidance!
This is clearly a complex situation which requires legal advice from an expert Texas oil and gas title attorney who can review all the facts and circumstances. One question is the validity of the probate which depends on state law where the decedent resided and where the will was probated. Texas requires that a will be probated within four years of death. Other states may vary. So you need to determine whether the 2019 probate of a 1980 will was valid and could be used to transfer the assets, particularly if it was probated in Texas. Or do you mean that the will was timely probated (eg around 1980) and then the certified probate was filed in the Wharton County in 2019? Perhaps the holding company is trying to clear title and then claim tany unpaid royalties and future royalties. I do not know about the issue of the arrears. Usually an oil company has to turn the royalties over to the Texas State unclaimed funds and cannot simply keep the money. But that may also depend on all the facts and circumstances. This requires the advice of an experienced oil and gas attorney familiar with the ins and out of Texas oil and gas law.
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More context: I was reading a blog post about an unclaimed Texas royalties case from June 2019. Link below. I have a question about this part:
“The law provides no excuse if the royalty owner is not aware that she is owed royalties; a royalty owner is deemed to know whether a well has been drilled on lands in which she owns an interest.”
I understand that this applies to owners who are unaware they are owed royalties. But what about someone who was unaware that they were an owner in the first place? Is there a distinction?
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