Hi! Our family has newly discovered an NPRI. We have completed the “chain of custody”. – the original will was probated in Loving County, and an affidavit of heirship was recorded for the next will (which was not probated due to there being only one heir). We submitted an order of division to the current oil company and they will begin issuing payments including retroactive royalties in their possession. We have also submitted claims for other back royalties to the appropriate states, etc.
My question is about title transfer. Is this a process that happens between us and the oil company, or do we file a request with the county? I’m unclear about how/when to complete this step. Does an NPRI have a deed that should be conveyed to us like land-based mineral rights?
All legal documents have to be recorded in the county. Different operators require different proof of title in order to begin payment. The answer depends upon the original wording of the NPRI. An attorney can help you with the proper filing.
I’m sorry. My question was not clear. Who exactly initiates the title conveyance? Is it the oil company, or me? In our case, a new title will need to be created. There is no title to transfer, because the original NPRI is divided as per the will. A new title/deed will need to be created that reflects the portion we inherited. My question is who are the two parties who conduct this transaction? Us and the oil company? Us and the estate of the person who left us this NPRI? Us and the judge in the county?
An NPRI is first created in a deed, whether as a reservation or grant of interest in minerals. The NPRI is real property and title is transferred by deeds (gift or sale) or through inheritance (usually probate or could be affidavit of heirship). Regardless, as with your house or any real property, title is established by the proper filings within the county deed records from Owner A to Owner B and then to Owners C, D and E. It is the responsibility of the owners to make sure that title is clear. The oil company will review the title to be sure it is clear before paying royalties. If there is a break in the title, the oil company will let you know what needs to be cleared. The oil company does not participate in the deeds. If you have a title problem, you may need to consult a title attorney to help get it cleared properly or to help you prepare and file the properly worded deeds.
I think I am a little bit more clear on the subject. Does this mean the affidavit itself is essentially the “deed” in the eyes of the court? There is no separate document to record? We have already recorded that in the county, and the current operators have already started royalty payments. Does this mean we are done with document recording? The following documents are all recorded with the county: The original NPRI establishing ownership by person 1, the probated will that conveyed it to the next person (2), and the affidavit of heirship that conveyed it to the current living person (3) who is the sole heir of person 2.
From reading these explanations, am I correct to understand that the most recent recorded document (either a recorded sale/transfer between two living people, a probated will, or affidavit of heirship) that establishes rightful possession IS the deed/title in the eyes of the law?
Or is there a final step of having an attorney prepare and file a new properly worded document that serves as a deed?
Yes, the affidavit of heirship substitutes for a deed from a probated estate to the heirs. It is a title document, just as a deed is. If the oil company has accepted the affidavit and is sending you royalties then it sounds like you do not need to record anything further.