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Permalink Reply by The_Baron on July 7, 2009 at 2:53

Simply contact the lessee. They will know who they assigned the lease to, if there was an assignment.

It is a little early for this. After the well is drilled and completed, a process wich can take 45-60 days, the operator will have a title opinion and division order prepared. If there is a succession on file in the courthouse, the tilte attourney will pick that up along with every thing else. My advice is to sit tight, you have some time before anything happens.

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Permalink Reply by Mac Davis on July 7, 2009 at 14:33

Geez, you folks sure are helpful. Thanks, all.

Yes, we have a judgment of possession.

I realize I've got a lot of time to handle this, but want to know what to do when the time comes. Plus, maybe if we get it straight now, we can avoid "accidental" delays later.

Wolf how do you "run the conveyance records?"

Thanks especially to wolf for finding the info and linking it in.

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Permalink Reply by Dion Warr, CPL on July 8, 2009 at 11:31

Mac:

Run the Conveyance (Vendor / Grantor) index starting around the date of the lease in question. Depending upon what parish courthouse you are in, you might be looking at index books, or a computer.

If you don't already have this information, search a known name of someone who signed your lease (yours, or mother, father, sister, brother, etc.) to find the book, page, and/or entry number for your lease. Many times leases are assigned in batches, and while the schedule of leases assigned should have a name that you recognize as lessor, sometimes having the book and page and/or entry number will help you track your lease.

Look up your lease in the copy book (if there is one). Depending on where you are, some courthouses still note assignments of leases in the margins of the first page of the lease; ("This lease assigned at Book X, Page Y, Entry Z" or "For assignment of this lease, see Book X, Page Y, Entry Z"). If you are in a parish courthouse that does this, you may not have to search any further than the latest assignment in the margin.

If you're not that lucky, run the vendor (or grantor) forward from the date that the lease was signed. Run ‘Chantilly Resources’ or ‘Chantilly’ for assignments. Write down any book(s), page(s), or entry number(s) you find to date, as in many cases you will have to look up or view each document to track your lease. Repeat this process for each assignment of your lease. If Chantilly assigns the lease to ‘XYZ Oil Company’, run ‘XYZ Oil’ to date, and so on, from the effective date of the assignment forward. When you make it to present day, you will know who ‘owns’ your lease.

Keep a certified copy of any transfer of ownership from the original lessor(s) in your records. Prior to the drilling of a well, the O&G company will generally obtain abstracts of title and title opinions of some if not all tracts in a unit in preparation for their division order, so chances are if no one has even permitted a well, that process will come later, and the title folks will pick up your JOP and act accordingly; HOWEVER, changes as to ownership do not become binding to Lessee until a recordable instrument (or certified copy thereof) if furnished by Lessor, or its successor(s)-in-title to Lessee. (This clause is present in all printed lease forms in some fashion). So if for some reason you do not receive a division order letter, or you are not getting paid (properly), you may then contact the company holding your lease and submit whatever documentation that they do not possess so that you receive any monies owed promptly.

In addition, make sure that you notify the company as to any changes to your address in writing, or any transfer of ownership after you begin receiving royalties (O&G will not keep people in the courthouse to constantly update your title, so as per above, it is up to YOU to put them on notice of such things like moving to California or donating royalty interest to your grandchildren.)

Good luck and pipe up if you have any other questions.

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Permalink Reply by Dion Warr, CPL on July 8, 2009 at 16:07

Or you could hire Skip.

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