Mineral Deed SW/4 SEC 8, TWSP 19 NORTH, RANGE, PAYNE CTY, OKLA

Oil and Gas Leasing Help
1

In December 2012 or there abouts, my 4-siblings and myself inherited 160 acres at my mother's death. This deed sat in my father's safety deposit box since 1952 after he received it from his uncle who lived in Oklahoma.

As Executor of my mom's will I registered the mineral deed with Payne county at that time, not knowing if it had value or not. Since then we have received several legal documents, the most recent identified with applicant: Devon Energy Production Company, L.P. with RELIEF SOUGHT: POOLING.

The legal document received before this one had, for the same company:

RELIEF SOUGHT: Vacate Existing Spacing & Establish Horizontal Drilling & Spacing

Actually we received two of these documents: one dated 5/13/2014 & 5/20/2014

Not being an anthony, none of us really know what's going on here, but it looks to me like it's slowly progressing toward a time when Devon Energy is going to want to drill a horizontal well and pool the pay-out. Just a guess on my part!

Can anyone in the Forum give us any idea what to expect next, and what we should do?

Thank you, Gary C

P.S. I can scan & send a copy of these documents if it will help. There are a lot of people included as owners (several pages worth that I won't send).

2

Gary,

I suggest you consult with an Oklahoma Attorney with experience in Oil and Gas Title, and Probate.

You have filed an Affidavit of Heirship. However I don't feel that will be sufficient to obtain marketable title / receive payments on the future well. The landman didn't feel so either based on your mother's name listed in the pooling application.

A pooling application and subsequent order in Oklahoma is used to gather up all of the unleased or absentee owners within the proposed unit. You do want to put yourself in a position to make an election after the order is issued.

3

Rick,

Thank you for your quick response. I'm a little confused, since I did all the paperwork as instructed by Payne County Office to change the registry from my dad (W. Wayne Corder) to my mom (Alma G. Corder) to each of us children. They returned acknowledgement stamped "State of Oklahoma Payne County Register of Deeds" back to me in December 2012. The County clerk's name was Linda Hatfield. As the Executor of my parents estate, I have worked with Minnesota's probate court, although I must say this item was never discussed. I assume you mean Probate in Oklahoma. Perhaps I should start by recontacting the Payne county office again?

Can you explain what you mean by "in a position to make an election after an order is issued."?

4

Gary,

Basically Oklahoma property needs to be probated in Oklahoma. I know many if not most states are like this. Maybe an attorney will step in, here at explain. The way I understand the statute, an Affidavit of Heirship only establishes marketable title in a sale and after 10 years. It is commonly used to lease mineral rights but that is not what the statutes say. However time and time again I see payments on well held in suspense because it does not pass muster on the title opinion the division order are built from.

So can it be used to claim ownership to make an election per the pooling order? I'm not sure.

An Affidavit of Heirship is simply a person's testimony of who the heirs were to the property. They person giving the testimony is rarely a disinterested party. It is my understanding that a will witnessed by the same person with an interest in the estate would no be valid. I think the legislation on Affidavit of Heirships had good intentions, but they created as many problems as they attempted to solve.

5

Rick, I need to apologize as I found something Mineral Joe sent me in Dec. 2012, and I totally forgot about it. I believe what he told me sews it up, and I can toss the Mineral Deed.

Please take a look at what follows:

Permalink Reply by Mineral Joe on December 10, 2012 at 11:53pm

Gary,

We have all been in your place with all facets of our life, that being inexperienced, we all learn something new everyday. I would want to see the rest of the document because the first thing I see from your post of the back side of the document is the words "limited term".

Permalink Reply by Gary Corder on December 11, 2012 at 7:47am

Delete

Thanks for the kind words Joe. I'm unable to get the image small enough to load here, but here is some of the verbage from a page of the deed.

"The Southwest Quarter (SW/4) of Section Eight (8), Township

Nineteen (19) North, Range One (1) West of the Indian Meridian,

Payne County, Oklahoma.

(It is the intention of this instrument to convey an undivided 2 2/3rd acre mineral interest.)

containing 160 acres, more or less …………

It further states:

TO HAVE AND TO HOLD The above described property and easement with all and singular the rights, privileges, and appurtenances thereunto or in any wise belonging to said Grantee, his successors, personal representatives, administrators, executors, and assigns for a period of 10 years from July 7, 1952 and as long thereafter as oil, gas or other minerals is produced therefrom, ………….."

Permalink Reply by Mineral Joe on December 11, 2012 at 8:46am

Gary,

I am sad to say that this interest has expired. It looks like there have been over 20 wells drilled in that section but none were in that quarter and spacing has been 40 acres according to Oklahoma Corporation commission records. That interest expired on it's own on term and lack of production back in July 7, 1962 so all you have is the memento.

So sorry for wasting your time Rick!

Gary

6

Rick (and anyone else), this discussion brings to mind questions I have had as I try to learn more about this business.

Is the reason for Gary having been mailed these OCC filings because he or his mother's name is listed for curative purpose on the Drilling & Spacing Application and the Pooling Application? And, if this is the case, why would one receive these mailings? What is the proper response if I should ever receive such documents? Would I just ignore/trash them, and is this what Gary should do with them?

Thanks for helping me know what to do if this ever happens.

Wesley

7

Gary,

I have to wonder if there is not something else giving your dad rights to some of the mineral rights there. Yes, it is possible that the landman missed the 10 year period. But it makes me wonder.

I'd make an election on the pooling order regardless. You don't want to get stuck with the default 1/8 Royalty Interest if it turns out there are some rights there.

You could also contact the landman listed on the application. Ask him about the title chain and tell him your concerns. They should have easy access to the mineral report and than instrument book and page will be listed.

8

Hello Rick, I looked the Application over again, but can't seem to locate any name at the end associated with the term "Landman". At the very end is a statement after the attorney's identification that says:

"For more information regarding this Application, contact Rory Barneche.....followed by his address in Oklahoma City." Would he be a landman? The next few pages are all filled with the names of individuals and companies.

Gary

9

He is a landman for Devon.

10

Thank you Rick. I'll see if I can get a hold of him tomorrow.

Gary

11

Hey Gary- GOOD NEWS, I think! Do not discard your deed.

I had just written the part at the end of this reply, when I decided to look at your post from Dec. 2012, hoping to see the exact language in your deed. Did not find it. However, I think the answer may be your words in an excerpt from that post.

"Reply by Gary Corder on December 9, 2012 at 8:36pm
I received a note back from the County Clerks office who informed me that since my Mineral Deed was a non-Participating Mineral Deed, I cannot lease, but if they start drilling I would receive monies."

The underline and bold emphasis is mine. Unfortunately, the heirs of your great-uncle most probably cannot be found to lease these mineral interests, probably don't even know they have the rights.

If you look on the Pooling Application list of names, you will most likely find John Wesley Hart. Eventually the bonus consideration for the 1/8 pooling option (clarify with Devon that the option is not yours to choose) will be deposited in the Mineral Owners Escrow Account (MOEA) as required in Oklahoma, and if it not claimed in 5 or 6 years, it will be transferred to the state treasurer’s Unclaimed Property account. Call the contact person at Devon whose name is listed in the documents they have sent. They usually have a reference (name of well or prospect) you should give to whoever answers the phone.

I am not an attorney or qualified to give advice. I am a mineral owner trying to learn about this business, and share only my opinions, therefore may be completely wrong.

I am leaving the following, just to illustrate that mistakes do happen, otherwise it does not appear to apply in any way to your situation.

******************
Gary, Rick gives you good advice.

Late last year, a friend received a Division Order requirement of a stipulation with a grantor (or his heirs) in the chain of title regarding an NPRI reservation. The friend was not aware of this NPRI.

Forty-six years ago, his father had bought two adjacent quarter sections of ranch land from the same grantor. Each quarter had a NON-PARTICIPATING ROYALTY CONVEYANCE dated and filed that same day. One of the NPR Conveyances reserved a 1/4 royalty interest for 20 years if no production, the other reserved 13/32 of 1/8 permanently. The brother inherited one quarter, his sister the other.

It was not convenient for my friend to go to the courthouse, so my wife and I went to get a copy for him. Using the DO Requirement document, we located the book and page of the NPRC. Examining the document, we discovered the legal description was not his quarter, but his sisters. Turning the page we found the NPRC for his quarter. Both the landman and the DO attorney had missed the small but important distinction, SW/4 vs SE/4.

Not saying, but same company and same county.

12

Hello Rick......
Well I've called down to Rory Barneche twice so far, but all I get is a message machine to talk to. Leave a detail message and phone #, but so far her hasn't returned my calls. Must be busy with other folks, but maybe he'll call back later.

More later.......Gary

13

Rick...I just had a phone call from Rory's office. A lady named Debbie, who said the same thing you told me originally. That is, the Mineral Deed expired 10 years after issue due to no drilling on the location. It was a limited term deed. They forward applications out as a matter of law just in case something is overlooked that may come up in the future. End of the trail, but she did say not to destroy anything, just in case! You never know, she says.

Many thanks for your advice and help Rick. Very much appreciated!

Gary