Obtaining Receivership Oil and Gas Leases
The scenario is played out time and time again; you want to lease several hundred acres of minerals in the middle of an expanding play. Your title examination has identified several of the undivided mineral interest owners and their locations, but their interests total only seventy-five percent (75%) of the mineral estate. One interest owner owns fifteen percent (15%) and has been identified, but her whereabouts are unknown. The other ten percent (10%) of the mineral title owners are unknown and not identifiable. Management is very ambitious about the area and adamant that the land department lease one hundred percent (100%) of the acreage.
What do you do about the known but unlocateable mineral interest owner?
What do you do about the interest owners you can’t identify?
How can you get a lease from people you cannot find or even identify?
Do you lease the interests you can find and treat the others as your cotenants?
Has someone else adversely possessed the interests?
These are some problems that have been confronted by many lessees over the years. Fortunately, there is a solution. The mineral receivership statute can help resolve these problems. Enacted by the Texas legislature specifically “to encourage the exploration and development of mineral resources,” the receivership statute sets out a process for exploration companies to continue to work notwithstanding the missing mineral and/or royalty owner(s).
But, to ensure that the statute is followed to the letter so that a receivership, and any leases taken under it, will not be subject to collateral attack, you need an experienced attorney knowledgeable of the statute to ensure that its stricture are followed to the letter.
At Michael S. Browning, P.C. we have the successfully obtained receivership leases for our clients in the past and are ready, willing, and able to assist you. So, if you have an unlocateable or unidentified mineral and/or royalty interest owner(s) please contact us and let’s discuss what options are available.