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Please forgive me, very new to this, my mother just passed and I am trying to get educated. She left me a note regarding this site and how valuable it has been to her.
In organizing the information, it appears that we have 1/8 interest and 3/16 interest in the same section, my quandary is in trying to determine which percentage belongs to which wells (there are 5) I would assume it comes from the production sheets (pardon my lingo, but still new to this), but I am having a heck of a time trying to decipher. I would very much appreciate any help given to proceed with an understanding.
Shall I call each oil and gas co. individually to extract this information or is there a better way?
Hi, Cmeyers -
Please allow me to offer my condolences on the passing of your Mother. Never an easy time.
I will be happy to help, as I am sure many others here on The Forum will be. There is a lot to learn!
The 1/8th and 3/16ths sound like the Royalties reserved to your family in Oil and Gas Leases they signed in the past. They may be your mineral interests, but it sounds more like Royalties.
You will need to send certain papers, such as a certified copy of your Mother's Probate Papers if she left a Will, to each of the companies in order for the Royalty Checks to be changed over into your name. But before we get into that, let's take a look at your lands and the wells involved.
What is the legal description(s) of the land(s)? And who's name(s) would or could the interests be under right now?
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Thank you so much for your very kind reply. The wells are located in Oklahoma, Anadarko basin, contracted to three different Oil & Gas companies. At this time I have sent the information you mentioned to just one, working on the other two today. I really appreciate your knowledge and explanation, as I am in the process of educating myself and really do not know the difference between royalty vs interest, I thought they were one in the same.
Sounds like you're on your way!
If they are User Friendly companies, ask them for copies of your Oil and Gas Leases, Royalty Division Orders and Source Deeds (where your family acquired the interests). Those are good, basic documents to begin your files with.
Think of Mineral Interests as being under the surface.
Think of Royalty Interests as being above the surface.
There are several different types of Royalty Interests.
There are (or can be) Non-Participating Royalty Interests that are permanent, severed from the Mineral Interests either by sale or by reservation in a sale (good examples of "Source Deeds"). The "Non-Participating" part means that the owner doesn't have any Executive Rights (the rights to negotiate or sign anything). They just get Royalties from the sales of any produced oil and/or gas.
There can be Term Royalties that are the same as I just described, but that only last for a set period of time, such as the length of a lease or, in a few rare occasions, a set number of years unless production is established (typically, once production is established the "term" is interrupted until production ceases).
Then there are the Royalties that are reserved to the Lessor (Mineral Owner) that signs an Oil and Gas Lease. They last as long as the lease does, too.
There is also a hybrid Non-Participating Mineral Interest, where the owner doesn't have any Executive Rights, so they don't negotiate the lease. But they still get their share of the (Signing) Bonus Payment, and Annual Rentals (if any), in addition to their share of the Royalties from any production.
In Oklahoma, you will run into situations where the Executive Rights, Mineral Ownership, Rights to receive Bonus Payments, Rights to receive Annual Rentals and Royalty Ownership are each owned by different parties. Each sometimes owned by multiple parties.
I don't know what in the world they were thinking when they started all of that. It's a real mess!
You may be able to access the County Clerk's Records for your County via:
County Clerks Offices take care of anything that effects Real Property (Oil and Gas Interests are considered Real Property). Deeds, Deeds of Trust, Oil and Gas Leases, Judgments, Liens, anything that effects ownership of Real Property.
Everything that established or has ever effected your family's Mineral and / or Royalty Interest Ownership will be in the County Clerk's Records except for Probate Matters (Wills, etc), and County and District Court Matters.
One slight caveat about County and District Clerk's Records: Any Judgment rendered in any Court that effects the ownership of Real Property, a copy of the Judgment has to be filed in the County Clerk's Records. The Case Files or "Jackets", where you can read through the entire process of a Court Case, you have to go the the County and District Court Clerks' Offices to review.
Be forewarned, this type of research can be addictive.
Hope this helps -
Hello again Charles,
Yes, there is so much to know and you appear to have a great handle on it, while I am taking baby steps so to speak. Your replies are very informative and greatly appreciated. I had forgotten to send you the well info:
All wells are located in one of two sections 19-11-19 and 18-11-19
I can see how this can be "addictive" as one question answered opens another one or two questions. I will be checking the link you sent and hope to keep in touch.
There is a percentage ratio of oil production vs. gas production that determines whether a given well is an oil well that may also produce gas or a gas well that may also produce oil.
As far as completely switching over from one to the other, from what I have noticed when researching different records, as production winds down, wells producing both will cease producing oil before it stops producing gas.
Hope this helps -