In the process of conveying my Mothers NPRI into my name on property "A", I recently found out that property "B" that I was Conveyed to me in 2002 was a PRI instead of a NPRI. My Mother and I both just signed division orders to both oil and gas companies a few months ago and she didn't know that the property "B" was a PRI when she conveyed it to me and I never received a lease or was approached with any negotiations. I thought the definition of "Participating Royalty Interest" in OK. meant I should have had the right to negotiate a lease and receive bonus? The TWIST is that during the process of my attorney emailing the oil and gas companies copies of the new deed for property "A" and the division orders we just signed 4 months ago to make the changes to add her interest on to my interest and revise a new division orders they both want me to resign. Questions: ( 1 ). Can they combine the two different classifications of properties or DO's Interests together without there being a problem? ( 2 ). If I never received a lease for property "B" and signed a division order for it without knowing It was a PRI and should have had rights that weren't exercised, can I now demand those rights before I resign a new DO to combine the two interests? I received a new Revised DO very fast from the gas company, which happens to be the ones that told my attorney I had the PRI on my earlier conveyed property "B". I haven't heard anything from the oil company on a new DO yet. (3). How do I acquire the lease that was signed and who the executive is that may owe me a portion of the bonus money if that's how it works? The location is Payne Co. North 45 acres of the NW/4 Sec12 T18N R2E and Sec 12 T18N R2E E2 SW/4 and the property name is "GATES #3-12H". I wonder how many wells they have there and this is all so very confusing with so many factors I'm not versed in, I have been studying for a couple months now and it is a very deep legal subject that's hard to figure out. Can I black out certain statements in the new DO that may be liable for me and return it, or do they have to combine it no matter what I do with the DO, because they were provided with the new conveyance from my attorney showing it's been retitled? The new DO states that "This Division Order does not amend any lease or operating agreement between the undersigned and the lease or operator or any other contracts for the purchase of oil or gas". Sorry for 4 questions in one but I still have many more. ;-) I hope someone can help! Thanks Derek.
Derek,
I don't know the answer, but never black out, line through and initial above. I am no attorney or expert, and I do appreciate any corrections to my seeming thoughts.
Thank you Tom for your advice. I thought I remember there being some posts on the Forum where owners would line out the clause that they could not warranty their title by agreeing to being liable for the oil and gas company's attorney determination of title unless they go and pay for an abstract themselves. I have received a response back from my attorney on the requesting a copy of the lease. He stated that he thinks the lease for this well in our area may very well have been signed many years ago and still be in production. He said my parents could have executed a lease and received the bonuses many years. The only problem is my Mother said she doesn't remember getting a check for a long time so I would have thought the lease would have been up by now. I hope I will receive more input from some of the professionals on this one. I am preparing to hire a Landman in Payne County, OK. to run the records for me to try and clear up our misunderstanding.