I inherited mineral rights, along with 3 generations of accompanying paperwork. I know I should keep all deeds (through the generations), but how long should I keep the leases and division orders? Thanks!
At least for as long as the lease is in effect and you have gotten a total release, not just a partial release of some of the acreage or depths. Most leases are only a few pages and the folder will not take up much space and many owners keep legal documents for decades. The lease and division order will also describe the mineral acreage you own and could be helpful to your heirs.
1 Like
I agree with TennisDaze. We have documents going back 100 years. I cannot tell you how many times I have had to rely on that old information. We keep it in chronological order with the oldest at the back. We are also in the process of scanning everything and filing it in the cloud. We use Dropbox, but you could use any service like that. Keeps the info safe from weather, theft, fire, etc. We keep all of our check copies and run statements for seven-eight years for IRS purposes. Shred them after scanning them. Don’t need that paper cluttering up the place.
1 Like
Scanning documents is good advice. However, you need to first create a labeling system for each document and a system of folders within Dropbox or other storage. For example, you can create separate folders for each land and then subfolders for deeds and oil and gas leases. Similar folder system for wells with subfolders for division orders, unit agreements and documents downloaded from the state commission. And you need to have a back-up hard drive to download the Dropbox files every month or two. As we keep hearing, no system is perfect and large companies are being hacked all the time. I do recommend that you never shred the oil and gas lease which is only recorded as a memorandum. You may need to be able to produce an original in the event that there is a dispute about the terms of an unrecorded document which may stay in effect for many decades. For this reason, you should always execute two originals and keep one for your own records and give one to the lessee. Even better is to have the lessee sign the lease too.