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104 Cards in this Set
- Front
- Back
Rule Against Perpetuities(RAP) |
future interest must vest within 21 years of a life in being |
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Rule of Capture |
correlative rights doctrine: allows equal rights between adjacent land or mineral owners
*CA is a little different - enforces correlative rights in field not courthouse: owner of O&G rights can drill on his property and retain substances brought to surface on his land |
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Fee Simple Determinable vs. Reversionary Intersets |
ownership both subject to an event happening reversionary interest: interest goes back to the original owner
fee simple determinable: property can go to anyone else. |
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Payments to remainderman vs. life tenant |
Remainderman receives corpus (body of estate used or produced: i.e. minerals): royalty & bonus(*); generally put in suspense
Life Tenant receives current income: interest from suspense account & delay rentals
* in AR & OK bonus to LT |
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Open Mine Doctrine |
If life estate is created while "waste" (act which decreases value of loaned or which uses up something that cannot be replaced) is already being committed, the life estate holder is entitled to continue the same waste to his/her benefit.
If applicable, life tenant entitled to royalty |
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developing cotenant vs. non-consenting cotenant |
developing: operating (personally or through lessee)
non-consenting: non-operating (i.e. did not sign lease |
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Duhig Rule |
- mineral & royalty interests (not OGLs) -Warranty Deeds only/Warranty Clause - convey more then own & reserves interest -priority to granted interest, rather then reserved interest -construed against grantor -Deed does not indicate prior reservations execepted |
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KS Statute No. 58a - 1013 (Trusts) |
- Copy of Trust not required -Trust Certification -Summary of Trust |
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Conservator |
Controls Estate |
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Arkansas - Statutory Pugh Clause
Oklahoma Statutory Pugh too |
Leases taken after 7/4/1983 Lands terminate 1 year after primary term if not in producing unit |
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Purpose of Bankruptcy & Types of Bankruptcy |
1) reorganizes entity 2) distributes assets
Chapter 7: Liquidation Chapter 11: Personal - reorganization Chapter 13: Business - reorganization |
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Michigan Pooling |
40 acres for all wells in Michigan
Antrim Shale: originally 40 acres; in 1983 5 sections were spaced at 160 acres; 1994: 1 well per 80 acres (Uniform Spacing Pattern) |
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Arkansas Pooling |
-640 acres (can be split into N2 & S2 of 2 sections) - Horizontal Fayetteville may be 2 full sections -lower carpenter formation (less then 2,500 ft) usually size of lease |
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Bond for Michigan State Lease |
-according to # of acres -$2,000 minimum; usually a Certificate of Deposit |
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Kansas Real Property vs. Personal Property |
Mineral Interest = Real Property Royalty Interest = Personal Property |
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Michigan Dormant Mineral Act (1963) |
- no activity on severed mineral tract for 20 years, the O&G went dormant (suspended/inactive) and reverted to the surface owner - activity = leasing, sale, mortgage, interest transfer, fining for drilling permit, filing Claim of Interest, etc. Claim of Interest required even if tract is active, HBP and owner is getting $ |
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Accommodation Doctrine |
Pre-existing surface use can be 'easily' accommodated by O&G company - the company must accommodate; |
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After-acquired title doctrine |
-over-conveys property -later acquires more ownership in over-conveyed property -interest auto transfers to person that was conveyed less then originally purported -binding to original grantor & successors |
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Warranty Deed Special Warranty Deed Quitclaim Deed |
WD - no cloud in title, transfers all guarantees SWD - no cloud in title, no protection from previous owners QCD - simply gives grantee anything owned by grantor |
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Partition |
Judicial proceeding involving cotenants 1) in kind (dividing property) 2) forced sale (ordering property to be sold and dividing the proceeds) |
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Non-Participating Royalty Interest vs. Overriding Royalty Interest |
NPRI - Revenue from Lessor's interest - does not terminate when lease terminates
ORRI - Revenue from Lessee's interest - terminates when lease terminates |
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Vara |
- Spanish for yard
-larger in E. Texas then W. Texas
-1919 - defined as 33.3333 inches |
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Labors |
177.14 acres or 1 million square varas |
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Leagues |
25 labors or 4,428 acres |
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Rods |
16.5 feet |
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acre |
43,560 square feet |
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arpent |
1,91.8 feet or .845 acres if square |
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chain |
66 feet |
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link |
1/100th of a chain or 7.92 inches |
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Judgment of Possession Louisiana |
- legal procedure which places heirs/devisees in possession of property regardless if party died testate or intestate |
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Strohaker Doctine |
-Arkansas
-reservation/grant of minerals/mineral rights w/o specific reference to mineral
-before 1900 O&G not included
-after 1905 O&G included |
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What state requires both husband & wife to always execute documents dealing with real property? Why? |
-Arkansas
-conveyance to H&W creates tenancy by the entirety (unless otherwise stated)
-spouse must release his or her dower or curtesy interest |
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Dissolution of Tenancy by the Entirety Arkansas |
-not destroyed by conveyance from only one spouse
-DIVORCE before 3/28/1947: court could destroy with consent; 3/29/1947- 3/7/1975 - court could destroy if specified; after 3/8/1975 - automatic disolution |
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Arkansas Dower/ Curtesy rights |
-with children: spouse = 1/3, children 2/3
-without children: spouse = if NOT ancestral 1/2 fee simple, if ancestral 1/2 life estate
-married 3+ yrs, no children = all of estate |
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Arkansas Homestead |
- outside city, town, village: >160 acres & <$2,500 or 80 acres
-in city, town, village <1 ac unless value >$2,500 or 1/4 acre
-outside city, town, village owned & occupied as residence, part of city/town, rural & agricultural use
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7 Guidelines Arkansas' version of Uniform Partnership Act |
1) 2 or more people for profit intent 2) property acquired by ptnrshp 3) ptnrship authority (a) normal business (b) authorized by other partners 4) Statement of Authority 5) A partner can file statement of denial to limit authority 6) all ptnrs equal rights, unless in writing 7) spouse has no dower/curtesy rights
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Arkansas Joint Tenants |
-before July 15, 1991 - created if intent was to create JT with ROS -after July 15, 1991 - must contain language for JTWROS -unlike tenants by entirety, conveyance by 1 owner destroys JT & creates tenants in common |
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Arkansas Uniform Transfers to Minors Act |
- transfers property to minor without court -do not need guardian -easier for custodian to admin rather then placed in trust -specific mention of Act in deed -grantor & custodian cannot be same |
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How many Arkansas counties are divided into 2 judicial districts? |
10: Arkansas, Carroll, Clay, Craighead, Franklin, Logan, Mississippi, Prairie, Sebastian & Yell |
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In NM, a lease gives the lessee what rights? |
fee simple determinable ownership of the mineral estate; terminates per lease terms. |
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2 common fee oil and gas lease forms in NM |
1) Unless Lease Form (creates fee simple determinable ownership) 2) Drill or Pay Lease Form (right of termination) |
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Summarize NM Royalty Payment Statue: Timing, penalties, exceptions |
-6 months after 1st sales -45 days after end of calendar month which pymt received by payor -18% interest unless: -less then $100, no DO, question about entitlement |
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Penalties/Risks for failure to pay timely shut-in gas royalty in NM |
-cannot use as lease savings provision -if not made in primary term, cannot be used at end of term to save the lease |
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Descendants, Ascendants and Collaterals |
Descendants - children, grandchildren, etc. Ascendants - parents, grandparents, etc. Collaterals - common ancestor - siblings, aunts, cousins, etc. |
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intestate succession in Louisiana: generation, direct line, collateral line |
-each generation = 1 degree -direct line = # of generations = # of degrees -collateral line = # of generations between relative and common ancestor + # of generations between common ancestor and deceased = # of degrees |
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Doctrine of Representation - Louisiana |
-representative takes place, degree and rights of person needing represented (only deceased persons). -example: children represent deceased parents -never takes place in favor of asendants |
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Louisiana rules of intestacy of community property for deaths after 1/1/1982 |
Usufruct (life estate) to spouse, terminates at death or remarriage and will pass to descendants (naked owners) (remainderman) |
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Louisiana rules of intestacy of separate property for deaths after 1/1/1982 |
-100% to descendants -Usufruct (life estate) to parents, terminates at death or remarriage and will pass to siblings or their descendants -to surviving spouse only when no descendants, no parents, no siblings or descendants from them |
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Louisiana intestacy for 1/2 blood siblings |
-divided into 2 equal shares: -full blood siblings take equal shares of both -1/2 blood siblings only receive equal share of 1/2 of original division |
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Usufruct (Louisiana) |
-similar to life estate -right of limited duration over property of another -usufructuary and naked owner |
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Usufruct of Land vs. Usufruct of Mineral Rights |
Land - title to minerals is part of land; needs naked owner consent to execute OGL
Mineral Rights - mineral rights are segregated from land (ORRI); does not need naked owner consent and naked owner bound to OGL. |
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Donation mortis causa |
donation which takes effect on on death and donor disposes of all/some of property (i.e. a will) |
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Testator |
person who makes a will |
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Capacity |
ability to make a will
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Types of Willis in Louisiana |
current -OLOBGRAPHIC -NOTARIAL
Previous Types -Mystic or sealed -Nuncupative or open -Statutory |
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Interdiction |
status of person who has lost control of his/her own interests (has guardian) |
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Louisiana Ownersip |
-surface/minerals CANNOT be separated -Servitude: right to use something belonging to someone else (10 yrs) -Prescription: revering back of mineral rights use it or lose it principal |
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Types of Louisiana Units |
-Commissioner's Unit - commission apvd after hearing -Declared Unit - determined by operator, commission apvd -Voluntary Unit - determined by operator & royalty owners -Fieldwide Unit - large acreage/field, 75% of owners must approve & commission apvd |
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Pennsylvania Dormant Oil & Gas Act Purpose |
-title curative mechanism to develop subsurface -excludes CBM -purpose was NOT to vest surface owner with title of severed intersets |
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Pennsylvania Dormant Oil & Gas Act |
-any interest owner can petition county court -diligent efforts needed to location unknown owners -Petitioner must appoint trustee for unknown owners -Trustee must be a financial institution (authorized in PA) -subject to escheat after 5 years -payments should be made within 6 months |
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Pennsylvania Royalty Provision |
- minimum 1/8 -recent lawsuits: lessors claim no deducts prior to calculating 1/8 royalty |
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Adverse Possession
Pennsylvania |
method of acquiring title to land against all others, including record owner, through certain acts over uninterrupted period of time. - adverse for 21 year period -possession must be actual, continuous, exclusive, visible, notorious, distinct & hostile |
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Pennsylvania Roads,Highways & Railroads |
- ownership unclear -obtain QCD or file Quite Title Action |
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Escheat |
Unclaimed intangible property transferred to the state for safekeeping
-purpose: consumer protection, relieve holders of liability & citizens benefit from increase in state revenues
-most states abandonment periods of 3-5 years |
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Escheat Reporting Guidlines |
-Report to state of apparent owner's last known address; if no address to holder's state of incorporation |
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Escheat Current Balance |
when earliest payment is abandoned all future payments deemed abandoned as well. |
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Before you Escheat |
Send written notice (aka due diligence letters) 60 - 120 days before property is due to be remitted -not required if under certain dollar amounts ($25-$100) or if mail has previously been returned from address |
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Kentucky Escheat |
-exempts reporting royalties entirely - but companies usually report to holder's state of incorporation.
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Oklahoma Escheat |
-mineral proceeds related to forced pooled units go to Oklahoma Corporation Commission. -held for 7 years -transferred to Oklahoma treasury for Unclaimed Property Fund -OK Treasury to transfer monies to state of last known address |
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Wyoming Escheat |
-production proceeds that can't be paid to be placed in a Wyoming Escrow account. If unclaimed after 3 years, payments remitted to Wyoming State Treasurer's Unclaimed Property Division. They will transfer to state of last known address if not WY. |
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Escheat Mineral proceeds |
"amounts payable for the extraction, production or sale of minerals, or upon the abandonment of those payments, all payments that become payable thereafter."
-royalties, delay rentals, bonuses, etc. |
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Which state has a limited adoption of the common law of England? |
California
- Common Law rule applied to conflicting titles: "prior in tempore portior est in jure" meaning: First in time is first in right |
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2 types of California Property |
1) Real/immovable - Land & property affixed to land, material of earth (trees, buildings, soil) 2) Personal/movable |
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2 types of California Ownership |
1) Absolute - single person has absolute dominion 2) Qualified - shared ownership, ownership is deferred/limited or use is restricted |
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California Several Ownership ownership in severalty |
ownership by a single person is designated as a sole or several ownership |
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California Ownership of Several Persons |
1) Joint interests 2) Partnership interests 3) Interests in common 4) Community interest of H&W |
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California Joint Tenancy |
-owed by 2 or more persons in equal shares -single transfer, expressly declared to be JT |
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California Joint Tenancy Severance |
may be severed w/o consent of other JTs: 1) deed to 3rd party or 2) written instrument evidences intent to sever the joint tenancy -does not terminate ROS unless: 1) recorded and 2) executed/acknowledged not earlier then 3 days before death and recorded no later then 7 days after death |
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California Partnership Interest |
- owned by several person for partnership purposes |
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California Interest in common |
-owned by several persons, not in joint ownership or partnership |
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California Interests as to time |
-present: immediate possession or -future: future possession
-perpetual: duration equal to that of property or -limited: duration less than that of property |
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California Types of Estates |
Either 1) estates of inheritance or perpetual estates: fee simple or absolute feel; freehold 2) estates for life: freehold 3) estates for years - chattel real 4) estates at will - chattel interests |
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California Servitues |
Land Burdens/Easements: attached to land ROW, pasture, fishing, taking game, water, wood, minerals, business, sports, , etc.
not attached to land: - pasture, fishing, taking game, right of taking water, wood, minerals: -The right to remove part of the substance |
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Who can grant servitude in CA? |
-one who has vested estate in the servient tenement
-servitude thereon cannot be held by owner of servient tenement. |
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Terminating Servitued |
1) vesting of servitude and the right to the servient tenement in the same person 2) destruction of the servient tenement 3) performance which is incompatible with its nature or exercise 4) servitude period is over |
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California 5 ways to acquire property |
1) Occupancy - quite title only if occupancy has ripened into title by prescription 2) Accession 3) Transfer 4) Will 5) Succession |
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Correlative Rights |
right to 1) produce from their lands without wast their fair share of that oil and gas and 2) to be protected against wast of and damage to a common source of supply |
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Notice-Race State |
California
-first to record in good faith or without notice of prior conveyance |
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The Wild Deed |
- made & recorded out of a particular prior owner prior to the time they acquired title -made after they acquired title but before the deed by which they acquired title was recorded |
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Transfer-on-death Deed Oklahoma |
allow grantor to convey upon grantor's death without a probate - 11/1/208 Nontestamentary Transfer of Property Act |
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Define Casinghead |
-gas produced from an oil well |
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Number of States with involuntary pooling statute |
32 |
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In Arkansas, distinction between ancestral and new estates/acquisitions was abolished as to which type of estate |
heritable estate |
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California Ancient Mortgages and Deeds of Trust |
-Expired after 10 years if final maturity date or last date of payment is known - otherwise 60 years |
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4 rules/requirements for Adverse Possession in Texas |
1) Open 2) hostile (adverse to the interest of others) 3) continuous 4) peaceful |
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Oklahoma Blanchard Decision Blanchardizing |
Royalty owners received 1/8 of everyone's proceeds, not just 1/8 of what their lessee sold. |
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Effective dates:
Production Revenue Standards Act (PRSA)
Natural Gas Market Sharing Act (NGMSA) |
PRSA - eff 7/1/1993
NGMSA - eff 9/1/1992 |
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Which of the following are subsequently created interests under OK SB168? ORRI Fee Lease Royalty Federal Lease Royalty Indian Lease Royalty State Lease Royalty |
ORRI Federal Lease Royalty Indian Lease Royalty
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True or False the OK PRSA Production Revenue Standards Act did NOT requiring balancing at the time the act became effective |
True |
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Are interest owners permitted to remove themselves from the operation of the PRSA? |
yes - by written agreement |
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Oklahoma alienable vs. inalienable |
alienable - able to be transferred to new ownership
vs.
NOT ABLE |
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Jurat vs acknowledgement |
a sentence at the bottom of a document that simply says "subscribed and sworn before me" followed by notary
acknowledgement - notary knows the signor personally or has seen positive ID |
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True or False In Oklahoma, if spouse dies intestate and is survived by one or more minor children, the surviving spouse can act on behalf of the minor children when the property is being sold |
False - a legal guardian must be appointed by court prior to property being sold. Not automatically the surviving spouse. |
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Oklahoma Rebuttal Presumptions Statute |
Cannot rely but cannot ignore
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