Suspended Royalty & Question of Accuracy of Division Order

CML, formerly Patterson Petroleum, suspended two royalty interests for nearly 12 years. After the settlement of a lawsuit, we waited on them for over one year to determine the mineral and royalty interests. A division order was finally received in January 2011 and I questioned the landman on the accuracy of several interests. He basically considers the matter closed and I cannot get an explanation of how one family member, who owns less surface and mineral acres than I do, is shown owning a higher fractional interest in production than me. The well is not on either one of our properties, but is pooled with ours. My brother may have more acres in the pool, but we signed a Stipulation of Interest stating that all minerals/royalty would be divided in 1/3s. Landmen help me out here. Unless I can’t see the forest for the trees, I cannot understand how my interest is less.

Dear 6th Generation,

All true Texas are proud of their heritage. The first Cotten in Texas was Godwin Brown Michael Cotten, who arrived in Austin's Colony in 1829. He formed the first paper in Texas and sold it later to become a lawyer. Oh my! I wonder how many generations that is?!

Since the minerals in your lawsuit with your brother remained in indivision, there are several reasons why his interest is higher than yours. First, a mistake was made. Not likely. Second, he has more interest than you. This could come by an additional interest in the unit that he acquired separate from your recent unpleasantness, or a lease with a higher royalty, or an assignment of overriding royalty - some plausible explanation. If not, it is a mistake, which, again, is unlikely.

To satisfy yourself, run down to the county records to index his name, both direct and reverse. This exercise would let you know quickly if an error was made.

This. by educated guess, is not in Chambers County, is it?

Thank you Mr. Cotten. How interesting to ready about Mr. Godwin Cotten. History has always been my favorite subject!

Regarding my question, I realize now that I left out some necessary information. The lawsuit was a will contest and my brother and I utimately ended up with an undivided 1/3 royalty interest each out of a 3/8 interest of our mother. Prior to his death, a third brother deeded his contiguous tract of land and minerals to my daughter and me (107 acres). The royalty being paid is a result of the oil/gas lease that our parents executed in 1995, so my brother has never executed a lease on any of the property held by production. Our father gave all three of kids children an 1/8 interest each of his 1/2 of the royalty under this land a number of years ago. As I stated before, the three of us children executed a Stipulation of Interest covering each of our three tracts. My living brother has not picked up any additional interest and I have 58 acres of minerals more than he does. Yet the Division Order has him having a larger interest. There is no overriding royalty payable to him or anyone in the family. I am fairly knowledgeable about real estate law and mineral/royalty interests. I know it us unlikely that a mistake was made, but I can only reach that conclusion. I have all the deeds from the county clerk's office and run sheets prepared by a landman for the executrix for my mother's estate that state each of our mineral interests. CML's landman says he needs proof. I would think that the deeds of conveyance from my deceased brother giving me 1/2 of his 107 acres would be enough proof that I have a greater interest. All royalty interests are accounted for.My mother had 3/8, my father had 2/8, and us three children had 3/8 = 100%.

The well has been producing for over 10 years and no longer provides much of a royalty payment. I receive about $125 every 4 months or so. If I should sign the Division Order, which I believe is inaccurate (which I doubt that I will) will it establish any precedence for any future company? I can't see that it would since every company has their own title attornies to do their title opinions and opinions can be different.

Buddy Cotten said:

Dear 6th Generation,

All true Texas are proud of their heritage. The first Cotten in Texas was Godwin Brown Michael Cotten, who arrived in Austin's Colony in 1829. He formed the first paper in Texas and sold it later to become a lawyer. Oh my! I wonder how many generations that is?!

Since the minerals in your lawsuit with your brother remained in indivision, there are several reasons why his interest is higher than yours. First, a mistake was made. Not likely. Second, he has more interest than you. This could come by an additional interest in the unit that he acquired separate from your recent unpleasantness, or a lease with a higher royalty, or an assignment of overriding royalty - some plausible explanation. If not, it is a mistake, which, again, is unlikely.

To satisfy yourself, run down to the county records to index his name, both direct and reverse. This exercise would let you know quickly if an error was made.

This. by educated guess, is not in Chambers County, is it?

Best,

Buddy Cotten