I inherited some mineral rights for my aunt. When she bought the property some 50+ years ago, she thought she had all the mineral rights to it. We have a lease with a oil company, first oil company did their research. We found out we didn't have as many acres as we thought. Another oil company bought the lease from the first one. They are getting ready to drill and have told us they can't find any record of the people that own the other acres. We've been informed by the oil company if we do this Stipulation and Cross- Conveyance we could pick up the rest of the mineral. I'm having a problem with if this is the right thing to do. I would hate to see the state get the money. My question is a common thing that happens .
You're getting into a lot of heavy legal and constitutional issues. In the U.S. no one can be deprived of a property right without due process of law. It's written in the Constitution.
Additionally, the fact situation doesn't really make any sense. The first oil company has done research showing you don't own 100%. The second company or assignee tells you they can't find any record of the other people who own. Why don't they ask the assignor? - first oil company
You can't legally stipulate as against rightful mineral owners that you own it all unless those parties execute the agreement as well.
I can draft and execute an agreement that I own all of Donald Trump's properties, and file it in New York County, New York, but unless Trump signed it as well, it wouldn't have any legal efficacy.
I could also be prosecuted for filing false documents.
Elmer
Which State are the minerals located in? Depending on the state, you could file a statement of claims and rely on the other mineral owners to come forward to also make their claims to the minerals, but, like Dave said, unless the other parties sign that stipulation, that is only going to create a larger cloud on the title and possible get you in some hot legal waters.
thanks for the advice, I think I'll just drop it, things didn't seem right to begin with.
Elmer
Which State are the minerals located in? Depending on the state, you could file a statement of claims and rely on the other mineral owners to come forward to also make their claims to the minerals, but, like Dave said, unless the other parties sign that stipulation, that is only going to create a larger cloud on the title and possible get you in some hot legal waters.
Dear Mr. Huffy,
I would not drop it just yet, if I were you.
If there are words of cross conveyance, then you and someone (likely the adjoining property owner) are maybe redefining a property line based on your Aunt's possession of over 50 years. It could be that. It could be adverse possession. It could have something how Utah handles missing mineral owners. It could be a lot of different things. It could be to clear up an awkward clause in a deed in the history of title. I have no idea what it is.
Ask the landman to send you the relevant portion of the title opinion that made the requirement for the Stipulation of Interest and Cross Conveyance.
Check with an attorney because if the oil company is going this deep in the title to cure it, there is drilling on the near horizon. You do not want to shoot yourself in the foot by inaction. That decision could literally cost you thousands of dollars.
And yes, Stipulations and Cross Conveyances are very common items in title curative. Both parties should be named on the Stipulation and barring words to the contrary, it is only binding when all those named execute the conveyance. I have never seen a valid Stipulation and Cross Conveyance where all parties did not execute the agreement.
Find out the truth of the situation so that you can make an informed decision.
The advice that you get here from me or anybody else is just as valuable as what you paid for it.
Best of luck to you.
Buddy CottenI believe your right that I need to take a long hard look at this. I'm requesting documentation from the oil company and getting a attorney. thank you, Elmer