Lawyers Opinion was wrong?

Ownership and Title
#1

We were Deeded 4 mineral properties back in 94. We now have 2 leased out. The third one in Weld County section 28 was lost in transition. Attorneys in the late 80's and in the early 90's both did not find our records so their OPINION Statement cleared the property and we have not received any royalties even tho that land has been producing on and off and has changed drillers hands several times. Bonanza Creek has already applied for a spacing permit in May of 2011. The permit application states ALL of section 28.

The question is if we really do own the rights and they cannot find the original documents or lease agreement from our heirs, will this become a problem for them. Or is is it more likely they will find our records if they dig deep enough. A landman found us so I know there is a paper trail somewhere. Another question is who would be holding the original lease in our names.

Thanks for any input

Also for anyone interested we just got last month $1500x160 acres in Morgan County.

#2

Dear Mr. Bouvette,

The Title Opinion is only as good as the information furnished to him in the form of an Abstract of Title, which is now typically done by landmen.

If the landman missed a document, or there is a document mis-indexed or misfiled, then the opinion will be incorrect. Every title attorney doing this work has disclaimers in their opinion to guard against their liability and restrict their liability as to what is under their control.

Incidentally, documents that are filed for record impart constructive notice even if they are misfiled or misindexed

#3

We got lucky. A copy of the original deed from the 40's was found. It states we have rights to a given location and it also looks like we have interest in up to 15 wells that are on 4 sections. Looks like 12 are currently producing.

Even so would the old lease still be legal if we were taken off the owneres list. I mean the newest driller can't find anything on us which to me would mean we have not received any payments on producing wells . The driller stated that the property on our deed is owned by the family trust name on our deed that we have 1/5 interest with. It looks like we were pooled together back when the lease was signed because it looks like we have a percentage divided by a few people, by acrerage. Were at a loss of how to go about finding possible payments in severence holding accounts or even finding the location of the trust accounts that are on our lease.

Also on our deed it says we have 1/5 interest in two family trust accounts. How would we find out where these are located.

One last question. The oil company's lawyer applied for a spacing permit for all of section 28. If we really do own mineral rights and we were lost in the shuffle, did our lease expire and will they need to address this with us when they determine our claim is real. Will they need to get a NEW lease signed. Its been over 20 years since the Opinion Lawyer messed this all up. Is our claim going to hinder the oil companys application if they don'y have full rights of the section yet.

Thanks again for any input.

#4

Not sure what your saying since you really did not answr any of my questions. We have proof the deed is real.

We have proof payments use to be made to us. We just can't find out where so far.

#5

Wouldn’t you have at least shown up as a no-participating heir since they couldn’t “find” you? If so, I do believe that any royalties you would have earned would have had to gone into trust, by law (in Texas at least) for up to 10 years and if the heirs don’t pop up then the money reverts to the state. I would think such information would be on record at the county courthouse where the property the property is. - now that I read your August 7, 2011 reply, I’d be thinking your money was paid to the state to be held in trust until you claim it! If this was me, I would start by googling how to find lost royalties or just hire an attorney to do the work for you - it would probably be worth it - I don’t know if the money in trust draws interest or not, but lucky you if it did!

#6