I only own the oil, gas, and mineral rights. I want to quit claim it into my trust and am doing this on my own as I manage it and am trustee of the trust. The legal form I paid for for the state of Utah suggests the terms 'improvements and appurtenances'. Do I leave those out of my quitclaim deed, or are they in some way part of an oil, gas and minerals deed. When the minerals were quitclaimed to me, it only states 'oil, gas and minerals and the rights thereto, in the following described real property in the named county and named state'. Then of course the description of the property. We have leased it to an oil company but no drilling yet, our lease to the oil company is for another 4 years. . It is unlikely they will find anything in my little corner, and I don't want to lay out money for an attorney to do the quitclaim. Thanks for any help. cb
The $200-$500 you save by not using an Attorney may cost you much more if you make a mistake. And use a good attorney very familiar with oil and gas properties. I’m still cleaning up a mess from an attorney that made several mistakes in a similar transfer of family assets about 10 years ago. It has cost me 50-100 hours of my time and $1500-$2500 in professional fees so far.
Consider having them add a clause if applicable to your situation that includes a catch-all to make sure all of your mineral rights are transferred even if you omit one or incorrectly describe it. Something like this.
All of Grantors’ undivided interest in and to the oil, gas and other minerals, all overriding royalty interests, excess royalties, and/or production payments, and all leasehold interests located in the State of __________, including, but not limited to all of the oil, gas and other minerals and all overriding royalty interests, excess royalties and/or production payments, and all leasehold interests in and under and that may be produced from the following described lands
Your mileage may vary with your state. Again, think about using an attorney. A couple of hours, may save you considerable time, money, and frustration in the future.
Rick Howell said:
The $200-$500 you save by not using an Attorney may cost you much more if you make a mistake. And use a good attorney very familiar with oil and gas properties. I’m still cleaning up a mess from an attorney that made several mistakes in a similar transfer of family assets about 10 years ago. It has cost me 50-100 hours of my time and $1500-$2500 in professional fees so far.
Consider having them add a clause if applicable to your situation that includes a catch-all to make sure all of your mineral rights are transferred even if you omit one or incorrectly describe it. Something like this.
All of Grantors’ undivided interest in and to the oil, gas and other minerals, all overriding royalty interests, excess royalties, and/or production payments, and all leasehold interests located in the State of __________, including, but not limited to all of the oil, gas and other minerals and all overriding royalty interests, excess royalties and/or production payments, and all leasehold interests in and under and that may be produced from the following described lands
Your mileage may vary with your state. Again, think about using an attorney. A couple of hours, may save you considerable time, money, and frustration in the future.
thank you, great addition to consider..and I will take your advice
cb robertson said:
Rick Howell said:The $200-$500 you save by not using an Attorney may cost you much more if you make a mistake. And use a good attorney very familiar with oil and gas properties. I’m still cleaning up a mess from an attorney that made several mistakes in a similar transfer of family assets about 10 years ago. It has cost me 50-100 hours of my time and $1500-$2500 in professional fees so far.
Consider having them add a clause if applicable to your situation that includes a catch-all to make sure all of your mineral rights are transferred even if you omit one or incorrectly describe it. Something like this.
All of Grantors’ undivided interest in and to the oil, gas and other minerals, all overriding royalty interests, excess royalties, and/or production payments, and all leasehold interests located in the State of __________, including, but not limited to all of the oil, gas and other minerals and all overriding royalty interests, excess royalties and/or production payments, and all leasehold interests in and under and that may be produced from the following described lands
Your mileage may vary with your state. Again, think about using an attorney. A couple of hours, may save you considerable time, money, and frustration in the future.
thank you, Rick great addition to consider..and I will take your advice
CB,
I agree with Rick Howell. At this point, the legal expense could be a cheap insurance premium to know that your trust is getting a) What you want it to have in detail, and b) future trust administrations' precise knowledge of the rights transferred. Even Rick's "catch all" clause would have problems downstream if the Grantor wants to transfer "whole" interests. I interpret deeds in mineral evaluations often and find most to be lacking or vague in rights transferred thereby causing problems when minerals become valuable. Correcting vaguely written deeds can be very very expensive, especially when valuable mineral rights control is open to interpretation.
I also think you are wise to put your minerals into a trust before they become valuable. Don't forget to officially notify the lessee of the change in ownership as provided by the lease.
Gary L. Hutchinson said:
CB,
I agree with Rick Howell. At this point, the legal expense could be a cheap insurance premium to know that your trust is getting a) What you want it to have in detail, and b) future trust administrations' precise knowledge of the rights transferred. Even Rick's "catch all" clause would have problems downstream if the Grantor wants to transfer "whole" interests. I interpret deeds in mineral evaluations often and find most to be lacking or vague in rights transferred thereby causing problems when minerals become valuable. Correcting vaguely written deeds can be very very expensive, especially when valuable mineral rights control is open to interpretation.
I also think you are wise to put your minerals into a trust before they become valuable. Don't forget to officially notify the lessee of the change in ownership as provided by the lease.
Gary L Hutchinson
Minerals Management
Appreciated! cb
Well, if you don't want to pay for an attorney, then you should NOT necessarily rely on any advice herein unless the person opining is a practicing attorney in the state where the minerals are located. If I were in your position, I would want an attorney in that state to tell me if an easement is considered an "appurtenance." Also, why wouldn't you use a Mineral Deed with a warranty clause? It would help down the road in establishing title to the minerals if and when your Trust ever sells them. It shouldn't cost any more to prepare a Mineral Deed than a Quitclaim Deed, whether you hire an attorney or not.
This is my opinion and what I did to "convey" real property and Mineral Interest into my Living Trust.
For "real property" (surface land, real estate, city lots), I prepared a "Quit Claim Deed & Memorandum of Trust" document.
For Oil and Gas Minerals which I own, I prepared a "Mineral Deed" document. A Mineral Deed has specific language pertaining to "Minerals" that a Quit Claim Deed does not.
This was done in Oklahoma. Your state may require something different, but maybe not.