I am the executrix and sole heir of the estate of an individual who died and whose will was probated in Texas. Several months after filing the final inventory, I discovered paperwork relating to royalty payments and a mineral deed located in Oklahoma. Therefore, these assets were not entered into the Final Inventory that was accepted by the courts. To save money (since the royalties were not large), the oil and gas company agreed to write checks to the estate. These royalties dried up and the well was capped. Two years ago a different company approached me seeking to lease my minerals and I agreed. I have a lease agreement that is in my name (as the sole heir of the Estate). Now I have been mailed Division Orders from an Oil and Gas Operating company that is refusing to release my royalties until an Ancillary Probate for the mineral deed is processed in Oklahoma. My question is, is there some way around the Ancillary Probate. The deceased has no living relatives, never married and had no children. (Her two sisters pre-deceased her and also never had children.) I do not have the resources to spend on an attorney and have very limited income. It just seems to me that since I’m the sole heir, as stated in the will, I should not have to do anything else. (I believe the will was filed in the county where the minerals are located by the Oil Company that entered into the lease agreement with me.) Couldn’t the royalties continue to be paid to the Estate if the company is concerned about heirship? Please help!!
There are experts on this forum who can advise you on alternative ways to establish title in Oklahoma. My comment is that this happens repeatedly when one oil company agrees to pay royalties without requiring that title be cleared This later creates major headaches for the heirs. Generally oil companies have become more sensitive to their liabilities if they pay someone who is later shown not to own the minerals or to only own a smaller interest. It can cost more later to clear title and some operators love to find ways to hold on to payments. Minerals are real property just like your house. An owner cannot sell or get a mortgage when there are clouds in the chain of title.
Thank you so much for responding. I’m not clear on how your comment relates specifically to my situation, but I do see your point. Personally, I don’t see what the issue is since the deceased’s will clearly states that I am the heir. It certainly seems to me that you are right about operators loving to find ways to hold on to payments; that seems more the motivation than anything else. It’s been 17 years since the estate was probated in Texas. No one has come looking for the deceased (because there is no family) and there are no other beneficiaries in the will, other than myself. If you do know of anyone who can guide me in establishing title without an ancillary probate, I would greatly appreciate it. Thanks again!
Operators put emphasis on different aspects of title at different times. Usually what happens is a landman runs the title and establishes who the current probable owners are. Based on that information, leases will be obtained from those current probable owners. This is the point in the process where you signed the lease that you mentioned. When a company decides on their drilling program, they send the same title to a title attorney, who creates a title opinion. This title opinion is going to be what the operator cares about. Title opinions break down ownership of the tract and includes curative requirements. These requirements are information about any clouds in title, what needs to be cured, and, specifically and more importantly, how to cure it. These clouds in title have to be cured before an operator will release payments. I think there is a title opinion this operator is using that says this ancillary probate has to be obtained before your payments can be released to you. My main concern for your question isn’t whether or not there’s a way around ancillary probate, but whether or not the operator will even accept the work around. They will likely do what their attorney advises them to do, and nothing else. My personal opinion, if you care enough about the money, do the ancillary probate, because the operator probably won’t accept an alternative any way, even if there is one.
Thank you for your input. I appreciate the time you took in delineating the steps leading to the title opinion. Not that it matters, but it still seems to me that the whole process is just a way for attorneys to make money. The will has been probated; I’m the sole heir. Even the oil and gas company agrees that the deceased is/was the owner of the mineral rights. (Although nominal, the deceased received royalties for years until her death and then the oil and gas company that was distributing what little was being produced paid the Estate royalties after her death.) Therefore, if the deceased was the owner and I’m the sole heir, I’m now the owner. Further, the oil company that purchased the lease made an agreement that I would be paid my percentage when the well produces. Shouldn’t that agreement be honored?
Nevertheless, again, I really appreciate your taking the time to respond to my concerns.
The oil company took a lease with your “agreement” to provide clear title in compliance with state law. You have not done this. Texas will allow you to file the probate from any other state in the county deed records. Most other states require ancillary probate or other legally acceptable documentation. Many people get caught in this situation.
No, at least there is not a practical way. (an affidavit of heirship requires 10 years to ripen in to “marketable title”). Some attorneys may be willing to work for a flat fee or share of the minerals.
Not unless it is a probate in Oklahoma. Texas courts have no jurisdiction (authority) over Oklahoma minerals.
Thank you for your feedback. Actually, the oil company agreed to striking the language in the lease that required my agreeing to provide clear title…so. But, one little individual, without the financial means, can not fight a giant, multi-billion dollar corporation.