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Mineral rights are somewhat unique to Texas, although many other states also have oil and gas exploration. Interestingly, in Texas, the mineral estate is separate from the surface estate. This allows ownership to mineral rights beneath the surface of a property without owning the land itself.
I receive calls from people all over the country who were not aware that, for example, a grandfather or uncle had invested in Texas oil and gas, they’ve just inherited mineral rights, and they’re unsure about the process.
In Texas, the mineral estate is dominant over the surface estate. If you own mineral rights, the surface landowner can not inhibit you from exploring, developing, or drilling. Oftentimes, an oil and gas operator will negotiate surface rights with the surface owner. In other cases, the surface owner and the mineral owner are the same person.
Generally, there are two types of mineral rights owners in Texas. First, there are individuals (mostly Texas natives) who have owned mineral rights for generations and who are very, very knowledgeable about the industry.
Second, there are individuals who did not realize they were set to inherit mineral rights and have no idea how the process works. Perhaps they’ve been contacted by an oil or gas landman to lease those rights or a mineral buyer to purchase those rights. This is when they call an attorney like me, who can engage the assistances of geologists and mineral appraisers to determine the nature and value of their minerals.
To share a recent success story, I was contacted by a gentleman who lives in the midwest. He was unaware that his deceased father had owned Texas mineral rights. He was contacted by a mineral buyer seeking to purchase the mineral rights for cheap.. My office was able to determine the location of the interest and work with the oil and gas operator to transfer the interest to his father’s heirs which were him and his nephew. Several years of royalty payments had been placed in suspense by the operator. As a result of our work, we were able to get that royalty out of suspense and deliver a sizeable check to both he and his nephew. Furthermore, they will now get monthly royalty payments for as long as the interest is is production. I always enjoy putting unexpected dollars in a client’s pocket.
If you have inherited mineral rights through a last will and testament, the will must first be probated, usually in the county where the decedent lived..
Once the will is admitted to probate, certified copies are requested of the will and the order admitting the will to probate.The certified copies of the will and order are then recorded in every county where the decedent owned mineral rights.
The recorded certified copies are then provided to the operator to notify them of the decedent’s death and transfer the mineral interest to the beneficiaries.
If your relative or loved one owned mineral rights outside of Texas, I can have the Texas will admitted as a foreign will in those counties or parishes where the mineral rights were located. In other cases, the operator may accept an affidavit of heirship, which can then be recorded in the out-of-state county or parish to transfer the mineral rights to you.
Wills need to be probated within four years of the decedent’s death. Many clients will come and see me for guidance within 30 to 60 days of their loved one’s passing. The process of collecting all necessary documents can take a couple of months, and the process of transferring your mineral rights can take an additional 60 to 90 days depending on the operator.
If your loved one owned mineral rights, but died without a will, the mineral rights operator may accept an affidavit of heirship, which verifies that you are a rightful heir. In this affidavit, a close relative, neighbor, or longtime friend will testify as to the family and marital history of the decedent to confirm the rightful heirs (such as a widow or children) to those mineral rights..
When the mineral interest is sizeable in valuethe operator may request a Judgment Declaring Heirship. In that case, an an Application to Determine Heirship is filed in the county where your loved one lived. . Once a court enters that judgment, it can be provided to the operator to transfer those mineral rights.
When handling mineral rights for clients, I take a proactive approach and strive to keep the process as simple and straightforward as possible. My goal is to get you in pay status as quickly as possible so you can begin receiving royalties from those mineral rights.
Retaining my office is an investment in your mineral rights. That investment requires many details to ensure mineral rights are properly transferred and you start receiving royalty payments. Over the years, many people have contacted me hopelessly lost in trying to to handle the process by themselves. They tried to work directly with the operator’s owner relations department, but were not able to prepare and/or deliver all documents and information required. A high rate of return is the goal of your investment in retaining my office.
Money isn’t everything, but it certainly doesn’t hurt, and the reward to you and your family can be sizeable financially, .
For more information on inherited mineral rights in Texas, an initial consultation is your next best step. Obtain the information and legal answers you’re seeking by calling (210) 824-4001 today.