How do we resolve and receive payment for monies placed in escrow due
to transferring ownership after death of mother from an active well started
drilling in summer 2010? Thank you.
Hire a probate atty. in the state your mother died.
Did you go through the probate process or did she pass intestate? If you went through the probate process you can have the certified documents recorded in the County/Parish. If you did not an affidavit of heirship should suffice.
You might want to contact the Oil Company that's she signed the lease with to ask them what they will need from you. Keep in mind, an "Affidavit of Heirship", is not always looked upon as an actual conveyance of the minerals and is most often worthless according to the Oil Companies I've spoke to. They may make you probate her estate.
All states require correct documentation of title to be filed of record in the county/parish where the minerals are located. Most states require ancillary probate proceedings in one county and then recorded copies in any other counties. Texas accepts probate records from other states. In the past, some oil companies have allowed heirs to simply fill out an internal oil company form to receive royalties. Heirs then avoided the cost of probate. Subsequent operator would suspend payments to the heirs or the heirs find out they cannot sign new leases due to gaps in title. I was involved in a title dispute where major oil company had paid other owners for decades (several generations) by allowing them to sign oil company forms. When we were settling and agreeing to divide the suspended royalties, major oil then announced that since some heirs had not filed proper forms in deed records, any agreement was invalid and major oil would still keep the money. It took an extra 18 months to prove up those owners' title. Major oil created problem and then tried to profit. It takes effort but your children will thank you for keeping good title records.
Yes, ask the producer exactly what kind of document they need to get your Mother's Estate out of Suspend status, a Certified Copy of Probate or an Affidavit of Heirship, and then make sure they get that document. It is NOT their job to do this paperwork. They can just continue operating like nothing happened and keep putting your royalties into a bucket until that paperwork appears on their doorstep.