I am a brand new to owning minerals. Just when I feel like I am getting the hang of it, I was sending out some transfer order requests today and noticed I accidentally had an ORRI transferred as a Mineral Deed (this is located in Beaver County, OK).
How do I fix this? Do I need to re-record? Or am I worrying over nothing?
Thank you in advance for any insight!
This will probably be flagged by future title examiners as a cloud on title. Don’t panic though - should be an easy and inexpensive fix. I recommend recording a “Correction Assignment of Overriding Royalty Interest” that contains special provisions that (1) specifically references the erroneous Mineral Deed by date and book / page (2) states that such deed was intended to convey an ORRI and not a mineral interest (3) that neither party to the Mineral Deed intends to claim minerals or cloud title to any mineral interest of record (if, that’s the case) and (4) have it signed and acknowledged by both parties (grantor and grantee).
As a title attorney, I can tell you we often see mineral deeds convey overriding royalty interest. The title of the instrument has no effect, it is the granting clause that matters. Many such mineral deeds contain language that is efficient enough to convey both mineral rights and overriding royalty interests. So it depends on the language in the mineral deed. As a practical matter, if it were me, I would just want until someone says you need to fix it.
Thank you, Rachel and maxroyalty!
My dad, who is also a lawyer, after a lecture about paying more attention to what I was doing, helped me draft a corrected conveyance nullifying the “mineral deed” and correcting it with language conveying it as an ORRI. We got it notarized and sent it back, it has been recorded and it (hopefully) on its way back to me!
Thank you again for your input!
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