Stepfather on Mom's oil lease

Hello,

My mother has mineral rights in ND. She remarried in 1992 I believe. She was approached for a lease in 2007 and both my mom and stepfather signed the lease. The way I understand it is that my stepfather is now entitled to half her royalties and if something happens to both of them, then half my mothers royalties would end up going to my stepfather's kids. Correct?

I don't believe my mother intends for this to happen(going to talk with her tomorrow). She always said she wanted all her estate to go to her kids. Is there an easy way to get my stepfather off the lease or get him to sign something saying he forfeits his half of the lease?

Thanks

Andy

ji am not sure but on a warranty deed we have from the 1955 it says for heirs ever and ever perpetuity

What does that mean? Only direct descendants?

Him singing the lease does not give him any rights if he does not have rights thru title. If your mother owns the property sole and separate then she owns it regardless of him signing the lease. The only way her interest would go to your step-father is if she dies intestate (without a will) before he dies (not 100% on that in ND, but it's fairly standard that he would at least receive a portion of her interest) or if she has signed a deed or other document conveying to him a portion of her interest.

She should make sure she has a will and that she hasn't signed any documents giving him rights to that interest. You can have him sign an affidavit disclaiming any interest and file it of record. There is no way by signing a least that he is magically entitled to royalties.

I'm not an authority on ND property law, but often the basics are common across state lines: in the case of separate-owned property, often the non-owner spouse may join in signing of the OGL as a matter of identity to the mineral owner spouse ... signing of a lease/easement, etc. does not confer title. Also, though, at least in Texas: if a re-married couple occupy as their homestead what was one's separate property, then they've communitized the ownership of the property and it is no longer separatley-owned property of one spouse exclusive of the other. There should be explicit language in your mother's Last Will & Testament to address the succession of her separate-owned minerals. Likewise, she can make whatever disposition of the minerals as she may desire.

I have a question regardng your statement regarding communitized property no longer being separate in Texas. A lady that I knew remarried a man who owned a large ranch, which was his separate property. She lived with him in that home and upon his death, his two children by a prior marriage inherited the ranch, house, cattle, and all his money. He left his wife $1,000 after 10 years of marriage. She had a life estate in the homestead since I understand that Texas law says that you can't kick out a surviving spouse out of the deceased spouse's home, even if they have no interest. The man's estate got her to waive her life estate right to live in this house so that could sell the ranch, but in turn bought a house in town for her to live in that was held in the childrens' names. His estate was still considered his separate property or did someone hoodwink her?

Rocky Arrell said:

I'm not an authority on ND property law, but often the basics are common across state lines: in the case of separate-owned property, often the non-owner spouse may join in signing of the OGL as a matter of identity to the mineral owner spouse ... signing of a lease/easement, etc. does not confer title. Also, though, at least in Texas: if a re-married couple occupy as their homestead what was one's separate property, then they've communitized the ownership of the property and it is no longer separatley-owned property of one spouse exclusive of the other. There should be explicit language in your mother's Last Will & Testament to address the succession of her separate-owned minerals. Likewise, she can make whatever disposition of the minerals as she may desire.

Your story sounds correct.

Texas has perhaps the strongest homestead laws.

So if a man with children marries a women & she moves into his house she has homestead rights

That doesnt mean she owns a part of the property only thart you will have a hard time ousting her should he die.

But she could not claim homestead on all of a big ranch.

6th Generation Texan said:

I have a question regardng your statement regarding communitized property no longer being separate in Texas. A lady that I knew remarried a man who owned a large ranch, which was his separate property. She lived with him in that home and upon his death, his two children by a prior marriage inherited the ranch, house, cattle, and all his money. He left his wife $1,000 after 10 years of marriage. She had a life estate in the homestead since I understand that Texas law says that you can't kick out a surviving spouse out of the deceased spouse's home, even if they have no interest. The man's estate got her to waive her life estate right to live in this house so that could sell the ranch, but in turn bought a house in town for her to live in that was held in the childrens' names. His estate was still considered his separate property or did someone hoodwink her?

Rocky Arrell said:

I'm not an authority on ND property law, but often the basics are common across state lines: in the case of separate-owned property, often the non-owner spouse may join in signing of the OGL as a matter of identity to the mineral owner spouse ... signing of a lease/easement, etc. does not confer title. Also, though, at least in Texas: if a re-married couple occupy as their homestead what was one's separate property, then they've communitized the ownership of the property and it is no longer separatley-owned property of one spouse exclusive of the other. There should be explicit language in your mother's Last Will & Testament to address the succession of her separate-owned minerals. Likewise, she can make whatever disposition of the minerals as she may desire.

Dear 6GT,

For your Texas law question:

It was still separate unless the funds became so commingled that the ranch acquired the aspects of community property. At that point a lawsuit to establish the title to the ranch would have to be brought.

There is one identical type case where the oil company had production on the homestead (separate property) and Pops died. The real sharp lawyer had her perform a renunciation of the will and as such was able to get 100% of the production attributable to the former homestead.

Andy:

Laws differ from State to State regarding these type situations. I would consult legal assistence from an estate attorney in ND.

Based on my somewhat extensive (and painful) personal experience with these kinds of things, I strongly urge you to see an attorney, preferably a very good one. I might try to find a large law firm and ask the estate planning attorney to team up with a litigator and an oil and gas attorney, if there is much money at state. Also, if your mother's state of residence is different from the location of the minerals, it is possible that laws of two states are involved.

A good preliminary question for you and your siblings is whether your mother should straighten this out with her attorney without you being involved, so that nobody can possibly claim you pressured her. For example, you (and your siblings) can have your own attorney, and your attorney can talk to your mother's attorney, and you and your siblings can later truthfully state that you did not attempt to pressure your mother in the least and in fact didn't even discuss it with her. By having your step-father sign, she may very well have given him grounds to claim part ownership of the mineral interests and thus the royalty income. She needs to get this straightened out, the sooner the better.

If it were me, I might even chat with two attorneys, from separate firms, to see if they both have the same take on it. I have found some attorneys are a LOT better than others--another thing I found out the hard way. For example, some estate planning attorneys are trust-and-tax oriented and have no clue how things play out in an intra-family post-death litigation.

Good luck. Proceed carefully.

I don't know how to do it, but you should talk to your mother about this and get it legal before she dies, My aunt and uncle did not intend for his family to get my aunt's royalty, they didn't even include it in their will, but I told the attorney when she died about her royalty and he insisted it be included, all of my uncle's family signed a wavier because it was not their family's but one niece would not, I should have found another attorney, I will regret telling him to my dying day. Get it legal before she dies!!! BLStringfellow

Thanks Buddy for the explanation of Texas law on this subject.

Buddy Cotten said:

Dear 6GT,

For your Texas law question:

It was still separate unless the funds became so commingled that the ranch acquired the aspects of community property. At that point a lawsuit to establish the title to the ranch would have to be brought.

There is one identical type case where the oil company had production on the homestead (separate property) and Pops died. The real sharp lawyer had her perform a renunciation of the will and as such was able to get 100% of the production attributable to the former homestead.

Best,

Buddy Cotten

Mineral Manager