PART II. CONVEYING OIL AND GAS RIGHTS
Chapter 5. Creation and Transfer of Oil & Gas Interests
A. By Conveyance
1. Writing
a. Deeds
(1) Warranty Deed
(2) Quitclaim Deed
(3) Importance of Title Covenants
b. Oil & Gas Leases
c. Other Instruments
2. Words of Grant
A. By Conveyance continued
3. Description
a. Legal Validity
b. Marketability
c. Methods of Description
(1) Reference to Government Survey
(2) Metes & Bounds
4. Parties Designated
a. Identification of the Parties
b. Capacity of the Parties
5. Execution
a. Signature
b. Attestation & Acknowledgement
c. Delivery & Acceptance
d. Recording
B. By Inheritance
C. By Judicial Transfer
D. By Adverse Possession
1. Are Both the Surface & Minerals Adversely Possessed?
a. Unity of Posession
b. Relation Back
c. Paper Transactions
2. What Must Be Done To Adversely Possess Severed Minerals?
3. Unresolved Issues
a. What It Takes to "Sever" Minerals
b. How Much of the Mineral Is Acquired
c. What Minerals Are Earned
Chapter 6. Joint Ownership of Oil & Gas Rights
A. Concurrent Owners
1. Development by Concurrent Owners
a. Minority Rule
b. Majority Rule
2. A Critical Evaluation of the Majority Rule
3. Other Methods of Obtaining the Right to Develop
a. Forced Pooling
b. Judicial Partition
c. Lost Mineral Interests
B. Marital Rights
C. Debtors/Creditors
D. Fiduciaries/Beneficiaries
E. Executive/Non-executive Owners
F. Life Tenants/Remaindermen
1. Power to Grant
a. In Common Law States
b. In Louisiana
c. Common Leasing Practice
2. Division of Proceeds
3. Open Mine Doctrine
G. Term Interests
Chapter 7. Interpretive Problems in Oil & Gas Conveyancing
A. Steps in Judicial Interpretation
1. Interpretation of the Instrument as a Whole
2. Use of Construction Aids & Rules of Construction
A. Steps in Judicial Interpretation continued
3. Consideration of Extrinsic Evidence
4. Application of the Interpretive Steps
B. Meaning of "Minerals"
1. Traditional Approach of the Courts
2. Texas experience
a. Surface Destruction Test
b. Ordinary & Natural Meaning Test
3. Proposed Solution
C. Mineral/Royalty Distinction
1. Significance
2. Common Interpretive Problems
a. Guidelines to Interpretation
b. Avoiding Ambiguity
D. Fractional Interest Problems
1. Double Fractions
a. In Sequence Rule
b. Literal Interpretation Rule
c. Avoiding Ambiguity
2. Conveyance
a. Duhig Rule
b. Departures from the Rule
c. Application to Leases as Well as Deeds
d. Limitation to Warranty Deeds
e. Avoiding the Overconveyance Problem
D. Fractional Interest Problems continued
3. Mineral Acres/Royalty Acres
a. Mineral Acres
b. Royalty Acres
E. Conveyances of Leased Property
1. "Subject To" Problem
a. Purpose of the "Subject To" Clause
b. Two Grants Problem
c. Avoiding the "Subject To" Ambiguities
2. Apportionment of Royalties
a. Non-Apportionment Rule
b. Apportionment Rule
c. Understanding the Rules
d. Avoiding Conflict With the Rules
(1)Modification by Agreement
(2)Entirety Clauses
(3)Legislative Provisions
3. Top Leasing
a. Obstruction
b. Rule Against Perpetuities
c. Internal Inconsistencies
notes. not for profit.
