I already owned minerals in a tract. A few years later my mother gifted me and my siblings her portion of minerals in the same tract. The oil company combined both accounts and are sending me one check. I want the payments for the mineral interest gifted to me by my mother separated from what I already owned. Please tell me what I need to do to have the mineral interest separated.
Thank you.
Write the oil company and tell them to send you your own division order.
Ok, Thanks. I will, and so having two separate divisions orders will mean that they will send me two separate checks? Please know that I know very little about the oil and gas business. However, I am determined to learn. Please forgive me in advance if I ask a dumb question.
Dear Glenda,
No dumb questions here! Actually, when you request your own division order, then the company will send new division orders to the others and the original division order will be no good any more. You will get your own separate check and problem solved.
Best of luck Buddy Cotten
I see what you are asking. No, I don’t think the oil company will do that for you. Sometimes mineral owners acquire 1/8th from Aunt Betty in 1983, 1/8th from Uncle Bob in 1987, and 1/8th from Mom in 1990. The 2014 division order will be based on a 3/8th interest. They would be in their right to issue you one check, not three.
You already know that you are entitled to a “separate check” covering your undivided interest. What you are now wanting is separate checks, not check. That really isn’t how it works. I would agree that the oil company would be correct to issue you a new d.o., and only one check pursuant to that d.o., not two (checks).
There is something you can do, but it will involve more time and expense. If it is that important to you, you would probably need to set up a separate entity, like The Mother Dillard 2014 Mineral Trust, or Glenda Dillard, LLC, Glenda Dillard, Inc. The point is that if you want something separate, create a separate entity of some kind. As it now stands, or in any case, as an undivided interest is increased through inheritance, bequest by will, or conveyance, it is still one undivided interest. An amended d.o. is in order, but not separate checks.
MAKE SURE THAT RECORD TITLE REFLECTS THE SAME. A deed from you individually covering mom’s interest only to a separate entity. Record that deed or Memorandum of Trust instrument, and file it in the county where the minerals are located.
Buddy gave you good advice. Try that first before you spend money doing something else. Postage is only 49 cents.
She wants two separate checks. It wouldn’t matter if postage was free. The advice you lauded still wouldn’t accomplish that.
Buddy’s advice will get her 2 separate checks and only cost 49 cents.
Glenda,
Sorry for all of the red herrings. The original advice that you received even told you that the new division order would result in your receiving a separate check, not “checks.” A revised or second division order will not result in two separate checks. The oil company will still consider it to be one undivided interest and issue you one check. Whatever your motivation is for wanting two separate checks paid for your original interest and the interest acquired from your mother, you will still need to do something affirmatively to differentiate between those two interests. Otherwise, the oil company will still continue to pay you in one check, not two. They won’t have any reason to do otherwise. In fact, you tell us that is what they are doing. They are doing that because they consider it to be one undivided interest with two different sources of title. They are correct in doing so. I’m afraid that they will continue to do so unless you are able to establish a reason for them not to do so, such as establishing another entity as outlined above. Good luck.
I think the right way to go about this is to follow Mr. Cotten’s advice. What I think the issue will be is that everyone on the DO has an associated owner number and tax ID for that owner. I will bet a cup of coffee that the software for writing the checks will not allow a separate owner number with the same tax ID or the other way around.
All of the companies I have dealt with have a very structured and robust system to prevent fraud, mistakes, and human error. I will tell you that you are going to make their head hurt when you send the letter.
Good luck, let us know how it works out.
I am ever so grateful for all the advice that I have received. I thank all of you who took the time out of your busy day to respond. I feel empowered by the advice that I have received. I will be working on this all week and will definitely report back as to how things turned out.
Dear Mrs. Dillard,
I apologize to you for all of the red herrings. They don’t take the time to read your question.
The oil company already knows that you acquired two different interests from two sources in the chain of title.
They are combining them, as you wrote, because someone just won a cup of coffee. However, whether it is the software or not, they have no incentive to write you two checks for the same interest. It is still one undivided interest, having been acquired from two separate sources of title.
That is why you would need to create a separate entity as advised previously. I think one way to put it is that you need to force their hand by informing that you don’t own both of the acquired interests individually any more. Create an LLC or different legal entity with a new tax I.D., and execute a deed from yourself to the newly created entity. It might read, FOR EXAMPLE, “All of the undivided 1/8th interest acquired under the will of my mother, Mrs. _______ Dillard.” Writing a letter telling them what they already know won’t accomplish anything.
I don’t care who gets credit for that advice.
Dave Quincy said:
Dear Mrs. Dillard,
I apologize to you for all of the red herrings. They don’t take the time to read your question.
The oil company already knows that you acquired two different interests from two sources in the chain of title.
They are combining them, as you wrote, because someone just won a cup of coffee. However, whether it is the software, or not, they have no incentive to write you two checks for the same interest. It is still one undivided interest, having been acquired from two separate sources of title.
That is why you would need to create a separate entity as advised previously. I think one way to put it is that you need to force their hand by informing that you don’t own both of the acquired interests individually any more. Create an LLC or different legal entity with a new tax I.D., and execute a deed from yourself to the newly created entity. It might read, FOR EXAMPLE, “All of the undivided 1/8th interest acquired under the will of my mother, Mrs. _______ Dillard.” Writing a letter telling them what they already know won’t accomplish anything.
I don’t care who gets credit for that advice.
My father had many interests - most not severed - in Stafford, Finney, and several other Kansas Counties. Had held them since the “bad days” when there was little money to be made. His father was one of 13 children born in the Stafford area. Flash forward - there was a lot of dividing in the later years, but my father kept his own, except for a couple he shared with his law partner. By the time my father, and later my mother - died, a lot changed. Severed about half the minerals, sold the land off to cousins, and everyone was happy. Then a late in life marriage brought a lot of bad advice that resulted in more severing. Still, by the time my mother died, it was a decent estate that was divided among his 4 children. Unfortunately, my father didn’t teach us the business - probate was a nightmare with a bad lawyer who he actually physically lost many of the records, didn’t even know, or pretended not to know, where the O&G records were. In spite of all that, my mother had made sure that the estate was divided equally among her four children, with each having an 1/4 interest. It still remains that way, and we each get an identical check - and I wouldn’t want it to be any different. Few problems - just the occasional scoundrel company like BP popping up.
So my question is - why would anyone want to have separate checks if they have share identical interests? Perhaps I misunderstood issue? The real nightmare for me was that my Dad purchased a good sized 1/3 interest in Moffat County 50 years ago - the other 2/3 purchased by good friends. Then rolled it into a trust for my mother as trustee for herself and her 6 siblings. My mother died ten years later, and the shoddy lawyer failed to arrange for a Successor Trustee when it was probated. So now, there are about 15 potential beneficiaries to my mother’s share, so now there was a long string of beneficiaries from my father’s two buddies - one had ten children - two died. We’ve all sort of given up. One of my dad’s friends who had held a 1/3 interest decided to donate his share to the Cowboy Museum in Moffat County…right by the Moffat County Courthouse where this whole thing was first probated. This is a nightmare - I’ve quit working on it - and it’s right in the Moffat County hot spot. My only advice is: Keep it Simple or it will come back to bite you in the shorts.
Dave Quincy said:
Dear Mrs. Dillard,
I apologize to you for all of the red herrings. They don’t take the time to read your question.
The oil company already knows that you acquired two different interests from two sources in the chain of title.
They are combining them, as you wrote, because someone just won a cup of coffee. However, whether it is the software, or not, they have no incentive to write you two checks for the same interest. It is still one undivided interest, having been acquired from two separate sources of title.
That is why you would need to create a separate entity as advised previously. I think one way to put it is that you need to force their hand by informing that you don’t own both of the acquired interests individually any more. Create an LLC or different legal entity with a new tax I.D., and execute a deed from yourself to the newly created entity. It might read, FOR EXAMPLE, “All of the undivided 1/8th interest acquired under the will of my mother, Mrs. _______ Dillard.” Writing a letter telling them what they already know won’t accomplish anything.
I don’t care who gets credit for that advice.
That question about wanting separate checks under the circumstances described was never answered. You can only assume that she had her own reasons. The oil company would really have no reason to pay her by separate checks in that situation.
Mary Bicknese said:
My father had many interests - most not severed - in Stafford, Finney, and several other Kansas Counties. Had held them since the “bad days” when there was little money to be made. His father was one of 13 children born in the Stafford area. Flash forward - there was a lot of dividing in the later years, but my father kept his own, except for a couple he shared with his law partner. By the time my father, and later my mother - died, a lot changed. Severed about half the minerals, sold the land off to cousins, and everyone was happy. Then a late in life marriage brought a lot of bad advice that resulted in more severing. Still, by the time my mother died, it was a decent estate that was divided among his 4 children. Unfortunately, my father didn’t teach us the business - probate was a nightmare with a bad lawyer who he actually physically lost many of the records, didn’t even know, or pretended not to know, where the O&G records were. In spite of all that, my mother had made sure that the estate was divided equally among her four children, with each having a 1/4 interest. It still remains that way, and we each get an identical check - and I wouldn’t want it to be any different. Few problems - just the occasional scoundrel company like BP popping up.
So my question is - why would anyone want to have separate checks if they have share identical interests? Perhaps I misunderstood issue? The real nightmare for me was that my Dad purchased a good sized 1/3 interest in Moffat County 50 years ago - the other 2/3 purchased by good friends. Then rolled it into a trust for my mother as trustee for herself and her 6 siblings. My mother died ten years later, and the shoddy lawyer failed to arrange for a Successor Trustee when it was probated. So now, there are about 15 potential beneficiaries to my mother’s share, so now there was a long string of beneficiaries from my father’s two buddies - one had ten children - two died. We’ve all sort of given up. One of my dad’s friends who had held a 1/3 interest decided to donate his share to the Cowboy Museum in Moffat County…right by the Moffat County Courthouse where this whole thing was first probated. This is a nightmare - I’ve quit working on it - and it’s right in the Moffat County hot spot. My only advice is: Keep it Simple or it will come back to bite you in the shorts.
Dave Quincy said:
Dear Mrs. Dillard,
I apologize to you for all of the red herrings. They don’t take the time to read your question.
The oil company already knows that you acquired two different interests from two sources in the chain of title.
They are combining them, as you wrote, because someone just won a cup of coffee. However, whether it is the software, or not, they have no incentive to write you two checks for the same interest. It is still one undivided interest, having been acquired from two separate sources of title.
That is why you would need to create a separate entity as advised previously. I think one way to put it is that you need to force their hand by informing that you don’t own both of the acquired interests individually any more. Create an LLC or different legal entity with a new tax I.D., and execute a deed from yourself to the newly created entity. It might read, FOR EXAMPLE, “All of the undivided 1/8th interest acquired under the will of my mother, Mrs. _______ Dillard.” Writing a letter telling them what they already know won’t accomplish anything.
I don’t care who gets credit for that advice.