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Oil/Gas/royalty division

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Question
My sister and I are receiving royalty checks from a gas company in the State of Texas Tarrant County.
The house on the property was sold with the stipulation that we maintain the mineral rights. The royalty checks come to me with both our names on the check and I have to divide the check equally and send her half. How can I get the gas company to send half to me and half to her?

Answer
From what I've come to understand from my time in the business as a non-legal professional you will need to prepare a conveyance (quit claim, gift, or warranty deed, etc.) from yourselves as it is styled now, jointly, to yourself and the other party individually.

If you are getting a 0.20000000 RI (ROYALTY INTEREST) then the deed would be from Gary and Sister to 1) Gary 0.10000000 RI and 2) Sister 0.10000000 RI.

This will need to be recorded in the county in which the lease is located.  You can look up the county/parish clerk at http://www.naco.org/Counties/Pages/FindACounty.aspx. You can mail or bring this to them in person to have it recorded in their land records (or equivalent) book.

You then present a copy of the recorded deed to the operator/purchaser that has been paying you. They may issue a Transfer Order or Amended Division Order for you to execute individually in order to finalize and document the change in their system, but that should be all that you need to bring to them from the outside.

This may seem like a bit of work to split a check, but it should make your accounting and tax time easier.  

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Jason J. Alexander

Expertise

I can answer oil and gas division order questions. I am most knowledgeable about as the purchaser side of the oil and condensate production. I can offer suggestions regarding probate and basic transfers of working, override, and royalty interests. DISCLAIMER: I am not a lawyer. I have seem and know what my company for instance accepts pertaining to these matters. Being from the purchasing end (and not the operator side) I do not have much experience with calculations or valuing property or minerals. I do not deal with acquisitions, exploration, or development of leases either.

Experience

I am a Division Order Analyst with a crude oil purchaser. I have worked in the division order and customer relations departments for the past 9 with a first purchaser. My company purchases and transports oil for operators and we make revenue distributions on their behalf. I analyze division order title opinions, prior purchaser pay sheets, probate, and other conveyances related to the set up and modification of pay decks (divisions of interest) in leases (wells) of oil around the county. I have been involved in the set-up of our contract pay leases in conjunction with our marketing and regulatory departments.

Organizations
HADOA: Member, 2013-2014

Education/Credentials
HADOA: March, 2014 Seminar The Land Department: Division Order Analyst Training Course, 2011 & 2007 NADOA 2010 Conference Land Focus: Fundamentals of Leases & Title Ownership, 2006 Northwestern University, BS Communications

Awards and Honors
Eagle Scout Award

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