About 35 years ago we purchased 100+ acres in Brazos Co. Getting 50% of the minerals at that time and 50% after 20 years with no activity. We developed the land and gave each buyer 50% of the minerals because we would get our share down the road. This was reserved in each deed as we sold the lots but now are being told we don’t own any of the minerals. What could we have missed?
You might have fallen victim to the Duhig rule. If grantor A sells to B and reserves 1/2 of the minerals, then A owns 1/2 minerals and B owns the other half.
If B them conveys the land to C and reserves 1/2 minerals, them at that point A items 50 per cent and C owns 50 per cent.
Duhig can be tricky, but the documents will always speak for themselves if they are not ambiguous. You should have a qualified mineral title attorney look at the conveyances and tender an opinion as to ownership.
Likewise the Doctrine of After Acquired Title could easily be applicable.
Google Duhig and After Acquired Title and read up on them both. Sounds like a competent attorney was not involved in the transactions.
Best,
Buddy Cotten
Thank you. I will do further checking and talk to an oil and gas attorney.
You might own 50%. It's also possible that the title searcher or whoever told you that you owned nothing, didn't understand the concept of the term reservation.
Your question is impossible to answer though. You would need to post the exact wording of the instruments that affect your title, or scan the instruments. Even then, no one could be sure because they wouldn't know what, if anything, was reserved prior in the chain of title.
I have found various wording on different deeds as we sold the lots. One says "mineral reservations set out in deed from (Buyer) to us (Seller) dated Oct 30, 19**, recorded in Vol **, page ***, Deed Records, Brazos County, TX.
Another deed to another buyer under restrictions and exceptions reads: 1/2 mineral interest reserved Oct 30, 19**, recorded in Vol **, page **, Deed records, Brazos County, TX.
There are numerous deeds with this same wording.
In general, Duhig is less likely to apply if the wording is clear on prior reservations, and the seller makes clear what he is reserving and references the prior reservations. What you are providing is not enough. Someone would need to read the deeds.
That is one of the main problems with this site. Too much blind advice is given. Any advice you receive regarding The Duhig Rule or any other legal doctrines is basically worthless because no one has read anything or done any title work on it. If you went to an attorney, as was advised, he would tell you the same thing - that he needs to read all of the applicable deeds.
I understand and appreciate your input and will take your advice! Should have done this years ago but it just became relevant recently!
Good luck and let us know what you find out.
Dave and Buddy have given you possible solutions, but Dave is correct that the only way to get anything other than guesses is to post the instruments online, which many people are reluctant to do.
Another guess - look at the deeds you gave out and see if it clearly reserves the minerals to you or just lists the prior reservations as an exception to the warranty of title. A lot of people mistake the listed exceptions as saving minerals to them. A mineral reservation should be set out clearly and should be seperate from the exceptions to the title warranty. The language you quoted above sounds like a title exception.
If you had a title company prepare all of your deeds (where you sold the parcels), I would go back to them and discuss it. Especially if a title insurance policy was paid for on the parcels in dispute with the mineral reservations.
Yes I know that minerals are not insured by title policies, but if there was an error or omission by the title company when the deeds were executed, they may be liable for the mistake.
Thanks… Had no idea that might be a possibility so I won’t use the lawyer who owns the title company!
Mistakes happen on deeds. If I've learned anything from title work in Texas (especially if it involves minerals or any other kind of reservation / restriction), it is that I always proof them before executing the documents. I have seen countless mistakes made that have cost property owners money because the deeds were not drafted properly. I don't expect every person to do that, after all, that is what professionals are paid to do (title companies, attorneys, etc.). But everyone makes a mistake now and then, I just proof all of my deeds as an attempt to prevent one of those mistakes happening to me.
EXACTLY my thoughts, Wade, except I would add that it sounds like the title exception was for the term mineral reservation that was made for twenty years from the date of sale thirty-five years ago, so that reservation might be expired by now. It's also possible that if the reservation was for twenty years "and as long thereafter" as production continues, and production has not ceased in the last thirty-five years, that might explain why she is being told that she doesn't "own" the minerals.
Wade Caldwell said:
Dave and Buddy have given you possible solutions, but Dave is correct that the only way to get anything other than guesses is to post the instruments online, which many people are reluctant to do.
Another guess - look at the deeds you gave out and see if it clearly reserves the minerals to you or just lists the prior reservations as an exception to the warranty of title. A lot of people mistake the listed exceptions as saving minerals to them. A mineral reservation should be set out clearly and should be seperate from the exceptions to the title warranty. The language you quoted above sounds like a title exception.
I suppose that I need to highlight what I said before.
Buddy Cotten said:
Duhig can be tricky, but the documents will always speak for themselves if they are not ambiguous. You should have a qualified mineral title attorney look at the conveyances and tender an opinion as to ownership.
Thank you, Buddy. For now it appears to be a moot point. I had 4 wells were permitted in November but now Apache has pulled all,of it’s rigs out of Brazos County so there’s no rush!!