Diamond ND Trouble

Does anyone know this mineral rights payor? They have made me spend months trying to find death certificates and other documentation for the oil leases in Divide Co. I don’t understand why. I have lots of mineral paying leases that I didnt’ have to provide the original Will and death certs for.

Has anyone heard of this enterprise operating in Divide, ND?

Have the interests that they want information on been probated? The operator can demand that you probate estates to bring your title up to date before you are paid. Unless the interest is miniscule, operators frequently require that your title be up to date in ND. The reason is because they can and it's not their money being spent. They will also hold on to your money until you do, not in an account, it's just a line in a ledger.

I think you may find that they are sending you on a goose chase, saving some landman the trouble of finding these documents, that you will gather all they require and at the end of the day, you will be required to initiate and complete a probate or quiet title action anyway. The longer they keep you running around like a chicken with it's head cut off, the longer they get to hold your money. Simple probates in ND can take more than one year because the lawyers are all swamped. Good luck.

Hello R.W.

Have you heard any news on Section 20 T. 163N, Range 97 W of the Fifth P.M. in Divide County?

I am not sure if this is the same Diamond that we recently dealt with, but here is our story, which sounds very similar to yours.

In our case Diamond Resources (Denver office) acted as a leasing agent for Continental, which had drilled one well within our spacing in Divide county, and has permits to drill six more. They have a title opinion that indicates we own mineral rights through an inheritance from our great grandfather, which was a surprise to us.

Our problem is that while the title opinion indicates we own the mineral rights, none of the wills had been probated within the State. You will find the the Northwest District court, which governs Divide county, is very strict and will likely require probate (ancillary or formal) for title conveyance. In our case, that Court would not accept quiet title, stipulation of heirs, or any other formal distribution agreement. Probate or no-go.

If Diamond Resources has confidence in their title opinion, they will pay your lease bonus, even though probate is not yet complete. But before they do, they will request all of the documents you have cited. Once probate is complete, the bonus may be altered if probate shows something different than the title opinion. Also, you will not receive royalty until probate is complete.

So that is our story. We found the landman at Diamond to be responsive and very helpful. His job is to get you to sign a lease, so has an interest in helping you out. One of the heirs to our inheritance signed the lease, the rest of us will either participate or go non-consent, depending on the AFE economics.