In December we auctioned some of our interests in Diamondback through EnergyNet. We have done so before with no problems whatsoever. In February, we auctioned interest we owned in Parsley, again through EnergyNet. When EnergyNet went to record the deed, it showed that the person who purchased our DB interest in December took that deed to Parsley, who transferred some of our interest to him, without our knowledge, and that interest and legal description was not listed on the QC deed. Parsley has been of no help. What are my options?
I do not understand how they could do it either. They said that every QC deed has “catch all” language that enabled the buyer of our Diamondback interests to transfer rights of our Parsley interest as well. Even tho the QC deed had the legal description of only our Diamondback interests.
Did you or EnergyNet or your attorney prepare the deed? Did you have an attorney review the deed before you signed so that you could be assured of the legal consequences? Any deed needs to be read in its entirety to be sure that it is limited to exactly what the seller intends. For example, some deeds include language of “everything owned in the county” which means every tract of land whether or not described. Is it possible that the Diamondback and Parsley wells are in the same section? If the deed assigns Section X and then mentioned the Diamondback wells, it could then have the effect of assigning all of your interest in the section, even through it lists only one set of wells. You should consult an oil and gas title attorney about the deed and its language, along with copies of all correspondence with EnergyNet and the buyer, to determine your situation and if there is a possibility of getting your minerals back. This should be a warning to everyone of the potential adverse consequences of signing a legal documents, such as deeds or leases, without legal review.
We used the same deed through Energynet that we have used many other times and they are as confused by this as we are. The Diamondback wells and Parsley wells are in completely different sections and blocks, or I could understand how this happened.
You will need to have an attorney review all the documentation, including the deed, correspondence with Parsley and your lease with Parsley. It may be that Parsley has made a mistake and that will be Parsley’s responsibility. Or it may be that there is an issue with the language or a typo in the deed. This is not something that anyone can answer without a thorough review.
Nicholas C Miller at Graves Dougherty Hearon & Moody law firm in Austin Texas. The firm represents mineral owners and will not have any conflicts with Parsley. You will need to tell him who the earlier buyer is to make sure that there is no conflict.
512.480.5656
