How to Research Activity in Montana?

I have received mineral interests in Montana, and have to create a file.

Dawson County NW 4 of Section 6, T-23-N, R-50-E of MPM

McCone County Lot 1, Lot 2 and S/2 NE/4 of Section 1, T-23-N, R-49-E of MPM

That’s the legal description from the deed. I need to get a copy of the original acquisition from the 1950s so I can figure the NMA. Did not get it from the bank trust department. Can’t find any online resources to research land records. Any ideas?

Need to know if this is an active or potentially active area, to decide if I need to spend the money to pay for research, as I am in Texas. Also, to see if I need to invest in an ancillary proceeding, as half my interest came from an out-of-state estate.

Asking for leads, please. Sit back and wait, or prove up my ownership now? Was told at NARO TX convention that Eastern Montana is going to be very busy in the next five years.

Thanks for your help!

Camille

Camille:

First, let me tell you how to access the GIS map on the MT website. Google "Montana Oil and Gas"; click on "live data" at top of page; click on "Live Data Access"; click on "GIS" at top left of page; map of MT will appear; click on the Dawson/McCone area and find your T/R/S. Move cursor to the i with circle on top (this will give you the operator plus info) after you put cursor on the black dots which are wells.

Looking at the GIS map, the area has multiple older wells which have been plugged. No new development in your immediate area but multiple wells just to the East of your area in T25, 24 and 23. As time goes on, this migration of development could easily move your direction but it could be years down the road. It would be beneficial to proving your ownership to these minerals, in my opinion. I also live in Texas and have minerals in the Roosevelt/Sheridan County areas of MT. I would suggest doing what I did and consult an oil and gas attorney in the area, discuss what is needed and also the price for these services. I have used Laura Christophersen in Culbertson, MT and their law firm was very prompt and reasonably priced but that was in 2004. Hope this info helps but I would pursue this matter as it could pay off in the future. The records will be on file at the County Clerks office in these counties.

Sorry Camille there are no online resources to research MT deeds. You'll need to go to the courthouses in Glendive (Dawson Co) and Circle, MT (McCone) to research your interest. Though you could probably hire this done through a local Abstract Company.

It's also questionable if the "original acquisition" deed from the 1950's will tell you the NMA owned. If you're lucky it may state "80 net acres" or the equivalent. Yet a deed from that era is as likely to state "1/4th", "1/2", or no designation if the Grantor was selling all they owned. The problem is you won't know if the Grantor owned less than 100%. So a sale of "1/4th" may convey 1/4th of 20 net acres. To determine your NMA you'd need to run the title from the USA Patent up to the present. Thankfully since you have two quarter sections this should not be too involved of a search.

You'd need to contact a MT attorney if an ancillary probate is needed. Though you can see what nearby O&G activity is like. Go to the state's website: www.bogc.dnrc.mt.gov . With the "Webmapper" you can zoom in on those townships. It shows some old wells near you and the Elm Coulee Field a couple of townships to the east. Since you don't know if you own 320 net acres, or 3 net, it is hard to say how much effort it is worth. Though if you don't research it you'll never know. Good Luck.

Thank you for the referral. Believe you are correct about the title. Also appreciate the lesson on Montana’s website.

Interesting that there are plugged wells. I found a lease from 1997 in the file, never executed,with a bonus of $15/acre!

Thanks again,

Camille

Camille:

Eastern MT does bring up a good point as to the amount of acreage you actually have in this area. Further, if you only have a small amount, say under 10 nma, would it be worth paying someone to research the records. This will have to be your call but if you could find any additional records that might provide this information, this would be to your benefit. Again, it's your decision. Good luck.

The lease I found indicates 14 nma although since it never was executed that figure could be wrong.

In MT, can the mineral interest and the royalty interest be split, like in TX? Thanks, Camille

I have minerals leased in MT which are located in the same Township and Range but different Sections which were leased at separate times and carry different royalties.

Camille Potts said:

The lease I found indicates 14 nma although since it never was executed that figure could be wrong.

In MT, can the mineral interest and the royalty interest be split, like in TX?
Thanks,
Camille

Camille, I believe in most (if not all) states royalty can be severed from the mineral interest. It is the case here in Montana.

As to the 14 net acres; If the potential Lessee knew what they were doing that may be an accurate figure. Though old leases (and offers) sometimes only tell part of the story. I found an old lease offer, say for 14 net acres on T23 R50, Sec 6: NW. Well this clue indicates minerals are owned there. Yet when I checked at the courthouse I found there were minerals also owned in Section 7 & 8 which were not listed on the old lease offer. Apparently the company didn't want to lease those tracts way back when. If I rely on the old offer alone I'd miss the additional lands.

So in both cases (was there any severed royalty and your actual total ownership) you need to do a title search to determine what is owned. In addition to a tract search on the two you're aware of, the records can be run via the last name. So if the minerals all originated with say Grandpa Potts, the county's Grantee / Grantor books for the entire county can be searched for everything coming in, or going out from him. This would allow you to determine what minerals are still in his name beyond the tracts you're aware of. In light of what you might receive in current lease offers the cost won't pencil out for just 14 net acres. Yet doing the work now would give you certainty on what you have up here. Hope this helps.

Indeed this does help. No, it doesn’t pencil out for 14 nma, but the education I am getting is priceless. ‘Grandpa Potts’ liked to buy royalty interests from what I can tell in Texas. But he also had a working interests and ORRI. All has been in a trust managed by a bank since the early 1960s. Now that somebody who cares is involved, and new technology is making iffy properties producers, I have a little bit to reinvest. Just trying to allocate wisely for my kids, so it keeps working, and is easy to lease & pay.

Appreciate so much the knowledge you and Xharles have shared. Plus, may get a tax-deductible fly-fishing trip! Yay!

Thanks, Camille

Camille, that is the spirit! If you know how to run the records, allowing a single day for each courthouse should be adequate to collect photocopies of all pertinent deeds. McCone County probably even less than a day since there has been far less activity there.

Though before flying anywhere gather all the info you can down there. Get copies from the bank and all other sources you can think of. Back in the 1950's there was considerable activity across the Williston Basin (eastern MT & western ND). At that time, numerous investors from Texas acquired mineral & royalty interests up here. So if typical, 'Grandpa Potts' may have bought more than the two you know of (ie... in other counties, or even in North Dakota). If you have scattered interests it really does pay to compile and maintain accurate records for you, and your heirs. P.S. You will find great fishing across Montana, but fly fishing isn't what NE Montana is known for. :)

I will research the fishing before we go! Appreciate the heads up. And yes, I have found interests in Texas that the bank didn’t have a records of one the inventory. And that’s exactly who Grandpa was, an investor from Texas who made his money elsewhere.

Appreciate your help. camille