Back With Some More Info

I was informed not to use the name of the trust in a public forum, but any secondary search of particulars that reveal it is aok.
The Trust lists Block 13 and Sections:
126 E Half, 320 Acres, #3534
127, All, 640 Acres, #274
164 E Half and SW Half, 480 Acres, #1405.

From 1944 to 1981, many actions are listed about relatives, leases, and financial notations, with the last entry before the 25 year lull, Assignment of O & G Lease, Burkholder Terry L, Gulf Oil Corp, 3/20/1981.
Next entry is 6/7/2004, OG&M Lease, B 13, S 127, Balmorhea Ranches, TS Dudley Land Co, then 8/31/2006, OG&M Lease, Our Family Trust, Banner Energy, B 13, S 127.
More notations listed through to the latest date I could find in 3/17/2017.

The only communication we’ve had about the trust transactions was to appt a new trustee in 2006. Nothing at all about actual activity of any type. In all the documentation I’ve searched through, 1440 acres are listed for 126,127,164 for the mineral rights deed. Since 1981, all we know is we know nothing.

Also, on 126 & 164, under the trust name, sometimes the half and quarter notations change and I wonder if another person’s part of those sections were mistakenly listed with our entries.
It’s like unpeeling a blooming onion, if not a member of the websites that have precise information, bec the grantor/grantee search can go on and on when listing each grantee as grantor. And how one company attaches to the one designated to lease property, and another company attaches to it and another one attaches to that one and so on.
I admit I barely make sense of all the activity associated to the mineral rights deed. Has there been/is/are there actual lease transactions according to some of the descriptions about the document type for OGM leases? Or other types of accounts?

I’m apologizing for requesting assistance to understand what is the state of our family trust. Other relatives have the same earnest desire to know but don’t go online at all, being much older or afraid of trolls and hackers.
I’ve only been able to do limited searches but it is even more frustrating not being able to communicate with the trustee.

Hi Sherry!

Thanks. I had looked in the general area around the intersection you described before and there are several dozen "Trusts" that own minerals in the area. Your legal descriptions will help.

I'll take a look after I finish mowing the yard. My neighbors are starting to give me dirty looks...

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

Reeves County records - January 5 2017, Trust u/will of George Hulings thru Trustee Marcus Hulings sold interests minerals in these tracts to Alexander O&G LLC (Vol 1360, Pg 0607); January 11, 2017, Alexander O&G sold minerals to CP Exploration II LLC (Vol 1361, Pg 0618); January 12, 2017, CP Exploration II LLC sold minerals to Quail Valley Properties Ltd (Vol 1362, Pg 0231); January 13, 2017, Quail Valley Properties Ltd leased the minerals to CP Exploration II LLC (Vol 1375, Pg 0199). I do not know whether these parties are inter-related, but given the fast pace of that lease, this was all planned in detail, at least on the purchaser's side.

If this is your family trust and properties, then you and your family need to send a demand letter to the trustee for information and to consider consulting an attorney and demand all records related to these transactions and any past dealings. Ask for tax returns, etc.

Thank you, TennisDaze, for your great information.
I don’t know what to say or if I should inform the remaining heirs that have asked for help with any info on the status of the deed. Many are over 70 and have been waiting a very long time for any type of compensation occurring from deed transactions. Before their 1981 receipts, they had a long fight in court bec a trustee had been exploiting lease, royalty, etc payments.
My hope is that the current trustee has whatever funds received from the sale tucked into a bank acct, waiting for the capital gains tax to drop significantly and soon, which President Trump is attempting to accomplish. Yet, my long time hope has been for leasing, or selling a section and leasing the rest.

I did more research this am based on info from TennisDaze. Yep, deed sold to Alexander O&G, who sold it to CP Exp, who sold it to Quail Valley, who reciprocated paid up OGM lease back to CP EXP, all 1440 acres of the mineral rights deed.
It’s almost a sickening feeling to realize it’s not there anymore, that it’s really, really gone, sold 2-3 times over, out of reach of all those years of hopeful expectations.

I knew, years ago, with the news of innovative diagonal drilling, that there’d be enthusiastic endeavors to revisit old well areas, and the old oil derrick acreage in Reeves County would be included. So close to being realized and now …

Nothing has been drilled on your lands, at least not yet. Apache is drilling a horizontal well to the south. It's bottom hole location will be about a mile from your southern boundary line. And back in April they permitted three wells just to the southeast of your lands. Their bottom hole locations, if they are drilled, will be just off of your southeast corner. That area of Reeves County has not yet been proven up, so the Trustee might not have done anything particularly wrong. They should have taken a vote on the idea of selling, but they might not have been required to. I wonder where the money ended up? If you need an Attorney, I've got a real Bulldog of one I can suggest.

You should immediately inform all of the other trust beneficiaries as they are entitled to know what their trustee / relative has done. You should not wait for trustee to disburse funds or contact you, but immediately demand an accounting and all related information surrounding the sale, including the emails and letters. In addition, you should determine whether the trustee is related to any of the transferees which would be a conflict of interest, especially if the properties were sold at a below-market value. Also, the capital gains tax will be due in 2017, regardless of the tax rates. If the funds are disbursed to the beneficiaries, then the tax will be assessed on them individually. If the funds are retained by the trust through year-end then the tax tax will be paid by the trust. Your CPA can advise you as to whether the resulting tax will be higher at the trust level, but that is a real possibility. I would advise you to contact an attorney. The trust document should be reviewed to see what powers the trustee has, including whether he even had the right to sell without consulting with or offering to the beneficiaries. In addition, he may try to pay himself a fee or commission and keep all the money. This is a very serious situation and you need to act immediately and not wait for the trustee's good will. As he has not been in contact with the beneficiaries and told them what he did or discuss the disbursement of funds and/or dissolution of the trust, there is no reason to trust him.

Thank you, CET3, for checking out the property status. I’m waiting to hear from a relative who might be able to connect with the trustee and let us know what is going on.

Months back, the heirs (the issues) rec’d an email from a relative letting us know that the trustee, or someone representing his purpose, wanted to dissolve the trust and disburse any money, in equal shares, to all relatives, not only to the heirs. I didn’t agree bec the trust was very clear about distribution to beneficiaries (originals) and their issue (heirs), not to issue’s issue and their issue and so on, also not to spouses.
The originals even went to court to have a judge clarify that intention, which he did.

I would hope the trustee has the sale proceeds in a bank account waiting to gather pertinent info on the remaining beneficiaries and their heirs, but it doesn’t excuse the fact that we weren’t notified of anything at all, during all the transactions concerning the deed since 2005-2006 to now.
I can’t speak for anyone else but I know a lawyer will definitely be needed very soon when the trust members are notified of the sale of their deed.

Well, if you need an Attorney, Wade Caldwell is a Sponsor and active participant on The Forum and people speak very highly of him.

Michael Jones I can personally recommend. He is very successfully representing several clients of mine in matters that have required going to court.

If TennisDaze was an Attorney, I'd obviously recommend him as well!

G. Wade Caldwell

Barton, East & Caldwell

700 N. St. Mary's Street

Suite 1825

San Antonio, TX 78205-3545

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210.228.3617 (o) direct
210.225.1655 (o) main
210.225.8999 (f)

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www.beclaw.com

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Michael D. Jones

Jones Gill LLP

6363 Woodway, Suite 1100

Houston, Texas 77057-1796

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Board Certified~Civil Trial Law;

Oil, Gas & Mineral Law

Texas Board of Legal Specialization

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www.jonesgill.com

Hope this helps!

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas