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Oil/Gas/mineral rights transfer


How does a Canadian transfer American mineral rights to a Canadian daughter and what are the US tax implications. These mineral rights are in the ND Bakken and are producing

I am only able to answer this question in part since I'm not aware of tax codes in Canada.

In order to transfer mineral interest in the states you only need to have a deed prepared conveying the property to the daughter executed by the current owner and recorded in the county in which the property is situated.  The process is not difficult but it will require that you contact the county in which you will be recording and ask a member of the clerk's staff what they require for the "notary seal" on the document.  Once you have complied with their requirements for recording then you can move forward having a document (deed) created that will convey the mineral interest.  

As for the document itself you can contact an attorney in the state in which the property is located if you are not comfortable creating the document on your own.  If you go the route of an attorney it would be beneficial to locate an oil and gas attorney since they will be more familiar with the particulars of the mineral estate.

The only tax implications from the American side is the payment of the severence tax which occurs automatically and any income tax based on production.

Feel free to send any follow-up since this is a pretty broad topic so far.



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Cliff Williams


I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.


I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

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