MRP 322: Will They Find Me? How Landmen Track Down Mineral Owners and What You Can Do to Help

You are currently viewing MRP 322: Will They Find Me? How Landmen Track Down Mineral Owners and What You Can Do to Help

MRP 322: Will They Find Me? How Landmen Track Down Mineral Owners and What You Can Do to Help

If you own mineral rights and want to get them leased, you may be wondering whether you need to go out and find a landman or if someone will eventually come knocking on your door. In this episode, we break down how the leasing process actually works from the mineral owner’s perspective. The short answer is that in most cases, when an oil and gas company is ready to drill in your area, they will hire a landman to find you and negotiate a lease. Like the proverbial needle in a haystack, they will dig through county and online records to locate heirs to mineral tracts that they would like to develop so they can obtain an oil and gas lease.

But there are some important steps you can take now to make sure you do not get overlooked—especially if you have moved away from where your minerals are located, your name has changed, or if the minerals are still in a deceased family member’s name.

To help you get noticed, I created this free downloadable Affidavit of Change of Address template you can use as a starting point to file with the county where your minerals are located.

The sponsor for this episode is SS&C MineralWare:

MineralWare is the leading asset management platform trusted by thousands of mineral rights owners for managing minerals, royalties, and non-operated working interests. Know in seconds where your leases are, what’s active, what acreage is open for lease, and if you are getting paid what you’re owed. See a demo today by visiting mineralware.com.

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Click here to get free access to the Affidavit of Change of Address Form that I created for you!

In Most Cases, the Landman Will Find You

  • When an operator decides to drill in your area, they hire a landman to research ownership records at the county courthouse, identify the current owners, and contact them to negotiate leases. The landman’s job is to find you.
  • You could try to approach an oil company and ask them to lease your minerals, but it generally doesn’t work that way. They will approach you when they are ready to drill in your area.
  • If there is not much drilling activity near your minerals, you may not be able to get a competitive lease offer. Anyone willing to lease in that situation is likely a speculator who will offer a low bonus, a lower royalty rate, and a long primary term—so be cautious about those terms.
  • If you are getting contacted by multiple parties, compare offers carefully. Some may be from brokers working on behalf of the actual operator, while others may be speculators looking to flip a lease. Look at the county records and state filings to figure out who the actual operator is, and consider reaching out to them directly.

File a Change of Address Affidavit If You Have Moved

  • The county clerk does not have a system that automatically updates your address when you move. You have to file a document yourself for every county where you own minerals.
  • Filing a simple Affidavit of Address or Change of Address form with the county clerk’s office puts your current information into the official chain of title so that the next time a landman runs title, your current contact information is the first thing they see.
  • The document should include the legal description of the property, your current legal name, and your current mailing address. It needs to be notarized and then recorded with the county clerk.
  • Important: Do not include personally identifying information like your date of birth, Social Security number, or driver’s license number on this document. It becomes part of the public record.
  • Recording fees are minimal and vary by county depending on the number of pages.

Do Not Use a Private Mineral Registry as a Substitute

  • Landmen search the official county records—not private mineral owner registry databases. Registering with a private service is not a substitute for having your information in the official public records where the landman will actually be looking.
  • Filing at the county is the industry standard and it is all you need.

If Your Minerals Are Still in an Ancestor’s Name, You Likely Need to Clear Title

  • If the minerals are still in a deceased relative’s name in the county records, a landman may have a very difficult time finding you, and you likely do not have what is called “marketable title.”
  • An operator may accept an affidavit of heirship for smaller interests, which can sometimes be enough to get royalties released from suspense. However, an affidavit of heirship alone does not cure title and can be challenged. It does not give you marketable title.
  • For larger interests or if you want clear, marketable title, the operator will likely require you to go through probate and get a deed in your name. Until then, they may hold your interest in suspense.
  • This can be a multi-generational issue. The title problem may not be something you caused—it could go back one or even two generations. Working with an oil and gas attorney in the state where your minerals are located is essential to navigate this correctly.
  • Contact the operator first and ask them what they need to get your ownership switched into your name and get you into pay status. Their requirements will vary depending on the size of the interest and their risk tolerance.

Other Life Events That Can Make You Hard to Find

  • A name change through marriage, divorce, or legal petition can break the connection between you and the county records just like a move can.
  • Transferring minerals into a trust without recording a memorandum of trust or deed that actually transfers the minerals into the trust creates a gap in the records. Make sure the trust is funded with the mineral interests and that the proper documents are recorded.
  • Any time you file a new deed or transfer document, use that as an opportunity to update your current address in the county records.

Best Practices for Being “Lease-Ready”

  • Do a cursory title search before going through this whole process. There may be other mineral tracts out there that you inherited and do not even know about. In Episode 10, we walk you through how to perform a title search step by step. For more step by step instructions and checklists of important documents you should keep for all of your interests, how to research drilling activity in your area, and more, check out my Mineral Management Basics online course.
  • Keep copies of all your important documents—deeds, previous leases, division orders, correspondence from operators, royalty check stubs, and deposit records. These give you a clear picture of what you own and a history of what terms you have been offered in the past.
  • Monitor drilling activity in your area by checking the state oil and gas commission website for new permits, recent pooling or spacing orders, and nearby drilling activity.
  • If you receive a lease offer, do not feel pressured to sign immediately. Compare offers, find out who is actually operating in the area, and consider consulting an oil and gas attorney to review the lease terms.
  • Consider joining the National Association of Royalty Owners (NARO) (see link below) for education, networking with other mineral owners, and access to expert speakers at conventions and webinars.

📥  Free Download: Get my free Affidavit of Change of Address template that you can use as a starting point for filing with the county where your minerals are located.

As always, have any legal instrument reviewed by an attorney before you sign and file it.

Mineral Rights Podcast Episodes Referenced:

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Disclaimer: This episode and accompanying show notes are provided for general information purposes and should not be construed as financial, legal, or investment advice. For guidance specific to your situation, please consult with a qualified attorney before filing any legal instrument.

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