We have been dealing with funds of $30,000 in hold as my children had not been identified as heirs to their father’s estate(I am to inherit my youngest child’s portion as he is deceased).The property is in Eddy County, NM. Spur Energy bought Property from Concho. My son was notified of the funds and told he would need proof of heirship. My son has complied with an affidavit of heirship. We recently received letters from Spur, one of which was for payment of overrides if they drill on the property in Eddy County. I spoke with the landsman of Spur Energy. I have since sent him an email asking when there would be a payout with no response. Since they have received proof of heirship and they have indicated they will be paying us overrides why have they not released the funds?
How long ago did you send them the filed affidavit of heirship?
The affidavit of heirship may not be sufficient to establish title in New Mexico. Was the father’s estate probated in New Mexico or elsewhere to establish the heirs? If in another state, then you may need to file ancillary probate in NM. If there was no probate, then you may need to go through a different court proceeding to prove title. Ask the landman exactly what the title attorney is requiring for title, as this varies from state to state. If you do not get a response to an email, then send a certified letter or have your attorney contact Spur. Your post is a little confusing as to the $30,000 - is it being held by Spur or Concho or has it been remitted to the state?
My grandmother’s probate was done in Texas. In order to release funds from mineral rights in NM, to her heirs, ancillary probate in Lea County District Court (not Probate Court) was required by Conoco.
Thank you for your response. My ex-husband passed away prior to his mother’s passing. She died intestate. Last year my son was contacted by an investigator hired by Spur Energy. Spur Energy reached out to him informing him that he and his brother (who is deceased) have 30,000 in a fund awaiting proof of heirship. He has had no dealings with Concho. He complied sending the affidavit of heirship for himself and his brother (I am to inherit my son’s portion). They have had the proof of heirship for about four months or so.
It has been about four months or so. My son has handled all the required paperwork. I got involved when a landman sent me two letters, first their intent of drilling, the second letter stating we “currently own an overriding royalty interest in some or all the leases and/or acreage” described in Exhibit A. They want to pool our overriding royalty into the drilling. This property is all of an inheritance as pertaining to the $30,000. So I’m confused as to the delay in payment.
Your son needs to contact Spur to find out exactly what is required to establish title in New Mexico. What the landman advised your son to do will not necessarily satisfy Spur’s title attorney. Affidavits of heirship are often accepted in Texas, but not in New Mexico. As there was no probate for the grandmother, It is likely that the title attorney will require a quiet title action to transfer title from the grandmother to the current heirs in accordance with the New Mexico intestacy statutes.
I went through a similar thing with Conoco. They acknowledged per wills filed in Texas who the heirs were and sent tax forms etc for distribution of funds. But finally had to pin them down on exactly what their legal department required to release funds. We had used AOH in Texas to sell grandmothers house, there was discussions they might be acceptable. The there was discussion of doing a Proof of Authority in NM county probate court. But finally we were told we needed to do Ancillary Probate for both my Grandfather and my Grandmother in NM county District Court and have a Deed of Distribution filed in the court to meet their requirements. What is acceptable could probably be very different from company to company.
Thank you for your response. What is puzzling, the other heirs have received their royalties. To my knowledge, they did not probate. The heirs chose not to mention my children as their father abandoned them when young so they were unaware of their inheritance.
If a will removing your children is in place, they will not receive royalties, and the AOH will not transfer title. Oil company and AOH practices vary; it is not recognized as true title but more as a notice, representing a business risk. Legal counsel or statutory review is recommended. Inherited property typically constitutes separate, not community, property; state law dictates ex-spousal claims, where a court order would have to be in place (e.g., divorce decree, deed, etc.). Legal advice should be sought; this is just an opinion, as I am unable to provide legal advice.
Susan, you have a more complex title issue than you may understand. @TennisDaze and @KathyRIMinerals have offered solid advice for you to seek legal assistance to resolve the issue. There are times when companies have different title requirements depending on timing and the related value. An attorney will be able to resolve the problem and help with the confusing issues.