We are looking for an attorney dealing with mineral rights in Atascosa county

Law & Legal
1

Here is a little of the back story. My father in law owns 100 acres between Cambellton and Falls City. My father in law is 82 years old and cannot live on the property anymore. He lives 2 weeks with her brother and 2 weeks with us and has been for quite a few years. The parties involved are my father in law, my wife, and her brother. The family talk has always been that when the father passes on the land will be split between the two siblings. About 3 years ago the brother tried to talk my wife into selling her "future" half of the land to him. He told her that she would not be able to take care of it anyway and that she didn't have the money to even pay the taxes on the land. He offered her 50K for her 50 acres. I suspected something was wrong so I told her do not sell. Where was he getting the money? We soon found out. He had been working a deal with an oil company to have 2 pipelines running through the property. All of this seemed to be with her father's knowledge and he didn't tell her until she pressured him on where the 50K was coming from. Then we find out that he also had a deal with EOG to drill for oil. He was trying to cut her out of the whole deal. Her brother seems to have dominance over her father.

Now let's move the story to today. There is a producing well on the property and has been for about 1.5 years. It is horizontal and there are 7 land owners in the the pool. There is also another well that they are pooled in with. The brother has been giving my wife some money here and there but he still keeps her in the dark about what is going on and how much money is involved. He and her father finally decided to get an attorney to make it all legal. I only know that the attorney's last name is Grandstaff and he is here in San Antonio. The attorney decided that they should make this a family owned business and all 3 equal partners. The attorney seems to be talking about the money involved from the time the paperwork is signed, which hasn't happened yet. I have heard no discussion about the past 1.5 years that the well has been producing, or about the pipeline money or the other well. My wife was left out of all of the decision making for that and the money involved.

I don't see any way that she could trust her brother after past experiences and there is no way a partnership would work. I suggested that everything be split 3 ways and they each control their part, to my wife. Grandstaff seems to only talk to her brother privately and hasn't talked to her unless all 3 were there. I do not feel that he is there to represent all 3 equally. It seems that he is there to represent the one that is paying him and that is her brother. She wants to find an experienced attorney to represent her rights. She says that her brother and Grandstaff may not like her getting another attorney involved. I say who cares what they think. Her rights are being violated here and she needs someone to represent her.

Hopefully someone will read this long story and help us out. We need someone to listen to the story from my wife and let us know if they can help to protect her. I know that price is always an issue and at this point she hasn't been given a lot of money from her brother.

2

Hi, Philip -

It is unfortunate when these types of issues crop up in families, but with over 35 years in the industry I've seen it many times. Anytime a substantial amount of money enters the picture, mental and emotional dynamics have a tendency to change - and frequently not for the better.

It's sad to witness, but some people (I consider them to be the morally weaker ones), very quickly succumb to greed and avarice and will not hesitate to destroy their entire family in their efforts to grab all they can.

I very strongly advise that your wife have an Attorney represent her in any negotiations going on or to be entered into. Most especially if Mr. Grandstaff is having private conversations with her brother (he could probably be brought before the Bar for that kind of crap).

And I would note to you that it should be your Father In Law paying the Attorney - it's his money. If your Brother In Law is writing checks to Mr. Grandstaff, it may be that he has wrangled a Power of Attorney out of your Father In Law. I would not think of that as being a good thing, especially if your wife was not included in that decision.

As far as what has happened on the ground, if you will tell me the legal description of the land and/or the name(s) of the well(s), I will send you what I can on the production history. I may even be able to show you how much your Father In Law has been receiving each month (or close to it).

That would be for the wells. I would not be able to determine what monies were received by your Father In Law for the pipelines you described. Maybe call a few friends in the industry and get you a Ballpark number, but not the exact amount.

Oh, and I would tell your wife not to worry about hurting her Brother's feelings. He apparently has very little respect for hers.

When it starts to get messy, which it almost immediately will, you may want to consider filing a lien of some type or even instigating court action. Send notice of that sort of thing to the company and they'll throw all the monies into Suspense until such time as the matter is resolved.

That will stop the Brother from using the money to fight you and give him an added incentive to settle quickly. Mr. Grandstaff will probably not work for very long without pay.

I'm not sure how it all works with Royalty Division Order Departments - your wife may even be able to simply call them or write them a letter, asking them to place the monies in Suspense until the matter is worked out. I have a few friends in the Royalty Division Order business - I'll ask around about that.

And you would probably have to send notice of any conflict or pending action to the company(ies) buying the product(s) as well (not just the Operator), but I can identify those for you in a few minutes.

Tell your wife I said she needs to get ready to Fight Like A Girl. And not to worry too much about damage to the family relationships - the stronger she is, and if she keeps the High Road, she'll have the respect of everyone involved.

Sometimes people like her Brother need to be made to go stand in the corner for a while.

Hope this helps -

Charles

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

3

Phillip, Mr. Tooke gave some good advice, how much of it is doable right away depends on something in your situation.

Does your wife have any right/title to the property beyond verbal agreement at this moment? By all means, scream fire to anyone who will listen because this will be much easier to unravel if the money stops.

If the brother has your father-in-laws power of attorney, was the father competent to give the brother power of attorney?

I think I would hang on to dear old dad on his next visit, if he was willing.

What worries me is that Dad probably did give power of attorney, the money is still Dads because he hasn't given title to his offspring yet and nobody but Dad has power to decide what is what. That your wife is not entitled to an accounting, that the money she has received thus far was only a gift and a means to keep her quiet and from taking any action while the dirty work was done.

I think You need to have a long talk with Dad and tell him that your wife is being cut out and ask him if that was his wish. If Dad says that was not his wish, Dad needs to revoke his power of attorney if given to the brother and it might be a good thing if Dad gave your wife power of attorney.

You need to find out who the lawyer actually works for. If the lawyer works for Dad and you can convince Dad to find a different lawyer, the brothers influence could be rapidly diminished and anything he has been naughty about will show up soon with someone impartial looking at the accounts.

If Dad is not competent, you need a lawyer immediately. I believe that you may have to enter into proceedings to have an accounting of what has gone on and to appoint someone to handle your fathers-in-laws affairs.

I would come out swinging with everything I had. They probably have a head start on you but then too they could still be in a phase that requires that nobody raises a fuss because in many things the law considers silence to be permission. Do anything you can. For all I know you could make an anonymous tip to the IRS that you think the brother has unreported income because I doubt it's all sitting in Dads account. Turn as many and as powerful floodlights as you can on whatever is going on. If it's all above board, no harm done, it doesn't sound like a great relationship between siblings to begin with. Good luck.

4

Yes, you need a separate attorney. 100 acres with an Eagle Ford well on it justifies the expense.

5

Wade, aren't you an Attorney?

6

Thank you everyone for the advise. I let her read this and figure which direction to go. Does anyone have a link to a good attorney in our area dealing with this stuff that can help us?

7

Philip -

You said Mr. Grandstaff is out of San Antonio - that's not a very long drive from Atascosa County.

I have a few friends in San Antonio - in particular two that are using the same Attorney to help sort out a couple of multi-million dollar messes. Let me see if I can locate a name for you - I understand he is aggressive.

I would imagine any legal actions undertaken would necessarily have to be in Atascosa County, that being where the property is located. And in District Court rather than County Court - the value of the property being what it is or has the potential to become.

I'd suggest reviewing the Texas Bar Association's website for Attorneys with Oil and Gas, Litigation and possibly Family Law experience in, first, Atascosa County [Hometown Advantage] and, second, in San Antonio.

Attorneys will tend to be cautious of conflicts of interest between the different firms. Some will not want to take on a large firm because they won't want to chance effecting their possible future chances of getting work from them or with them.

In other words, it may take you a little time to find an Attorney that is not only able to handle your case, but also willing and able to do so. You will eventually, but...

In the meantime, if you want me to look up your property accept my offer to become "A Friend" on The Forum and you can send me your legal descriptions directly.

Has anyone shown you what the potential for your property is? Once someone has, I'm certain your wife will want to talk to an Attorney.

Hope this helps -

Charles