Assignor reserved 'All Fee Simple Mineral Interests, Royalty Interests & ORRI's'

Need ADVICE!

When taking an assignment of a wellbore, Company A drafted assignment which contains varying language.

I am trying to determine if leasehold & mineral rights outside the wellbore was conveyed.

Company A 'Grants, Bargains, Sells, Conveys, Assigns, Transfers & Sets over & delivers' subject to terms and reservations hereof, all of Assignors (Company A) right title and interest, in and to the follow properties.

(1) Oil & Gas Leases described in Exhibit A, attached hereto and made a part hereof, as extended and amended and the lands covered thereby (the "Leases")

etc... WI's NRI's Farmouts Farmins, Operating Rights, and other mineral rights of every other nature in and to the Leases....

etc..

Here is where I get tripped up.

This language:

"It is the intent of the Assignor to convey & this Assignment hereby conveys to the Assignee, subject to the reservations and conditions herein contained, all of Assignors right, title, and interest, from and after the Effective Time, in and to the Properties, regardless of the omission of any lease or leases, errors in description, any incorrect or mispelled names or any transcribed or incorrect recording references.

ASSIGNOR SPECIFICALLY EXECEPTS FROM THIS ASSIGNMENT AND RESERVES UNTO ITSELF, AND ITS SUCCESSORS AND ASSIGNS, ALL RIGHT TITLE AND INTEREST IN AND TO ALL FEE SIMPLE MINERAL INTERESTS, ROYALTY INTERESTS, AND OVERRIDING ROYALTY INTERESTS IN AND UNDER THE AFFECTED LEASES AND LANDS DESCRIBED ON THE ATTACHED EXHIBIT 'A.'

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Under this real life scenario, does the assignee have rights outside of the wellbore that is being assigned. It seems to me they intended to do so, but what exactly is the the ASSIGNOR reserving unto itself? Leasehold or mineral rights?

Any help is greatly appreciated........

Hi, JRS -

Sounds to me like you need an Oklahoma Oil and Gas Attorney to help you figure that one out. Sounds to me like they're conveying you all the expenses / liabilities and reserving all the royalties.

I don't know any Oklahoma Oil and Gas Attorneys, but if you go to The Forum's Homepage, in the upper left hand corner there are a number of attorneys listed there. One of them may be able to help.

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

JRS,

CHARLES is right get an attorney to protect your retained asset.

Ask your attorney for a simple assignment of the property described by the Division Order and agree to make formal notification to the operator named in the Division Order. Use the Division Order as an exhibit to the assignment and have it recorded. Expand the assignment to include any modification to the well named.

Seems simpler and safer to me, as a manager.

Gary L Hutchinson

Minerals Managment