New here, but I thought this might be a good place to gather some valuable input/advice? My situation seems a little atypical from what I gather…So in effort to explain my situation, I thought I’d try to make a timeline of my mineral rights ownershp issue…
• Decades ago, oil field property (along with mineral right royalties and some working interests as well ) located in Elk Basin on Wyoming/Montana border was deeded to my great-grandfather.
• Property has subsequently and since been inherited down my father’s family line.
• Upon the death of my father in 1998 property (with rights/interests) was transferred to his wife (my mother)
• Upon death of my mother in 2008, my father’s original apportioned property (with rights/interests) was further allocated into thirds and transferred to three surviving children (including me).
• In 2015, I entered into a loan agreement with a small mineral right/lending company out of Frisco, CO. A special warranty deed was executed (transferring ONLY mineral rights/interests from XTO Energy to this Colorado company) with the agreement that owner interest would be deeded back to me upon fulfillment/repayment of loan. (Loan was roughly 3000$ with average monthly JIB net and revenue checks running around 300-500$/month). An amortization table anticipated loan would be paid off by 2018.
• Everything seemed to be running smoothly for a couple years as I received monthly updates/statements form lending company.
• THEN SUDDENLY, THIS COMPANY DISAPPEARED cutting all lines of contact/communication. (I cannot find that they had undergone bankruptcy.)
• Around 2019, I then started to receive (via mail) JIB invoices/bills from XTO. So, at that time, I contacted XTO owner relations requesting status about these (my former) interests. I received a letter back from XTO stating that they had not received communication from lending company and at that point XTO would then begin holding/suspend all revenue until ownership of rights/interests was resolved.
• To date, I still am receiving/paying XTO JIB invoices. I still am not receiving any net or revenue checks whatsoever.
Apologies for such a long story … But I am eternally grateful for any input whatsoever. Thank you so much to readers and responders here!
2Qs: 1) If I am not currently listed as interest owner with XTO, WHY am I receiving JIBs? (Cannot get straight answer for XTO) 2) How would I go about getting complete interest ownership back into my name from a company which no longer seems to exist…i.e. where is my recourse found?
If the loan was to be paid off by 2018, not sure what the confusion is when/why you started receiving JIBS in 2019? At a birds eye view, XTO accredits you with the ownership from 2019 forward, why they are sending you JIBS, did you pay the JIBS that you have been getting? If not, then thats why you are not getting monthly checks.
This is a question for an oil and gas contracts attorney in state(s) where lands are located. Answers will depend on the exact terms of the written agreement, deed, loan, and other documents. Did you have your own legal advice at the time or only sign documents given to you by third party? Were any documents recorded in deed records? You need to look at deed records to make sure company did not assign your interests to a third party. If the lender stopped paying the JIB then XTO may be sending to you as record title owner. Your attorney can best advise you as to the steps necessary to clear up your title in deed records and how to get back in pay. You will have to get the accumulated JIB balance paid off and that may exceed the revenues in suspense. Certainly XTO is not going to send you any revenues until this is settled. If you post the enamel of the lending company and ideally its state of incorporation and mailing address, possibly someone will be able to help you trace it.
Thank you for taking the time to read over and respond to my lengthy post. You answered my curiosity about whether or not this is a matter for an attorney? I didn’t use an attorney at the time. Wish I would have!! Just in case, my mineral rights lender: DRS Investments, LLC
Frisco, CO 80443
Thank you again for taking time to post such a thorough response, and for all of your wisdom!
Julie
Thank you for thinking about this, The confusion is that XTO has not accredited me ownership yet still bills me. I DO pay JIB invoices, however. Wanted to check that I wasn’t missing something very obvious. I did not use an attorney at time as I thought it was a very simple/easy and small value loan. (Definitely was not a good idea to hand over deeds looking back.) And also wasn’t sure if maybe there was a way to get ownership transferred back back into my name without an attorney (as lender has gone incommunicado)? It’s looking like there isn’t
@juliemarielaird, DRS Investments still shows as a company in “good standing”. This means that they have at least been paying to keep up their LLC registration. From a quick look at the deed records, it does not appear that the property was ever deeded back to you, but it doesn’t look like it was deeded to anyone else either. Have you tried contacting DRS by certified mail?
Thank you so much for taking time to look into this for me! (And I think I was a little presumptuous/inaccurate in using the term ‘dissolved’ company when titling this thread :/) It just makes no sense to me as we were on friendly and good cooperating terms before all ties were cut?
I have not tried certified mail, that is a good idea. I’m not sure what they would even have to lose at this point by informing me, as they 're no longer receiving checks from XTO, either (checks are now in suspension). At this point I don’t even have record if checks from that time were applied to my loan? I’d neither ever heard on the loan from any third party etc. Loan was officially 3200$ and checks were running 300-500$ per month, so loan should have been paid off fairly quickly? Or if for some reason it was written off, I was never informed of that either.
On another note, I ran across a website -but unsure how valid -where mineral lenders could be found along with names of interest owners with whom lenders are in agreements. I can’t find myself listed under/as one of DRS Investments’ interest owners. To me, it seems like all of this would be more trouble for them that it’s worth…it’s all so bizarre.
