National Association of Division Order Analysts July / August / September 2024
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Volume MMXXIV • No 3
www.NADOA.org
Contents Feature
Articles
NADOA 2024 Officers President Vicki Danielson, CDOA 1st Vice President Kimberly Bowman 2nd Vice Presiden t Jean Hinton Treasurer Valerie Wible, CDOA Corresponding Secretary Lola Strickland Recording Secretary Melanie White, CDOA
Regional Seminar - Guide to Escheat ..................................6 Interaction - DO 101 at NARO Rockies................................7 Institute is Almost Here........................................................... 8 Legal Updates Marsha Ellison v. Three Rivers Acquisition.................18 Koch v. David Fam. Oil & Gas............................................31 Ford v. Handy...........................................................................34
In This
Issue
The NADOA News Magazine is a quarterly publication of the National Association of Division
President’s Corner.............................................................1 Decimal Points....................................................................2 Certification......................................................................... 3 Cob Webs...............................................................................5 New Members....................................................................36 In Memory Sandra Warren, Mark Gresham...............................37 Counterpart Connection................................................38 2024 Institute Committee...............................................42 2024 NADOA Board & Committee Chairs................43 Calendar of Events..........................................................45
Order Analysts P O Box 1656 Palm Harbor, FL 34682
Subscription: By membership to NADOA, at $100.00 per year. News Magazine Editor Rona L. Erickson, CDOA magazine@nadoa.org
Graphic Design, Paul Beach
On the Cover: Skydance Bridge at Sunset
Photo courtesy of Oklahoma City Convention and Visitors Bureau
All rights reserved. No part of this publication may be reproduced/copied without written permission. Editorial disclaimer: The contents of this newsletter are intended for member use only and any other use without permission from the NADOA Board of Directors is strictly prohibited. Articles published herein represent the view of the authors; publication neither implies approval of the opinions expressed nor accuracy of the facts stated and NADOA accepts no liability for misprints.
President’s
Corner
Vicki Danielson, CDOA 2024 NADOA President
Are you ready to increase your knowledge as a Division Order Analyst?
Are you ready to meet Division Order Analysts you email frequently or have spoken with on the phone?
Are you ready to have an awesome time while getting educated?
If you answered yes to any of the above questions, you will want to sign up for the 2024 NADOA Institute this year in Oklahoma City, OK. There will be three keynote speakers, each with a great message to share. Our program committee has also engaged several well-known speakers to educate you in classes on Wednesday, Thursday and Friday to increase your knowledge on multiple topics. I hope many of you can join me with a round of golf at Lincoln Park on Wednesday afternoon and am really excited for Thursday night where we can eat, drink and mingle while playing pickle ball, darts, corn hole, bingo, and other activities at Chicken N Pickle. I want to share with you some benefits of attending the conference in addition to the great education. You never know who you might meet and how they may come back into your life later. I remember attending the 2007 NADOA conference in Albuquerque, NM and meeting Judy Moreland who was then First Vice President. Judy was such a nice, friendly person to talk with, I mainly just listened. LOL. I remember meeting Nancy Cemino back in 2015 at the conference in Amelia Island, FL. Nancy is a Hoot!! Especially when she has to sneeze. I remember lots of people I have met over the years attending conference and some have been very helpful with job opportunities and answering questions that came up regarding Division Order work.
I know by attending Institute you will definitely make new friends for life. See you soon!!!!
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NADOA
Decimal Points
Fourth Quarter............................November 15 2024 News Magazine Deadlines
Regional Reporters
ABADOA
Steptoe & Johnson PLLC Ryan.daniels@steptoe-johnson.com
Remember to keep your NADOA directory information updated. Due to all the changes taking place in our industry and the world, it is more important than ever to maintain professional contacts and receive the educational benefits of membership in NADOA. If you have a suggestion for someone to act as a Regional Reporter to help NADOA keep abreast of current legislation and legal issues for your region, please submit the name or the name of the firm. NADOA online Job Bank has new postings. Visit http://www.nadoa.wildapricot.org/page-662233 ADVERTISE WITH NADOA Advertising in the NADOA Newsmagazine is a great way to get your business name out to NADOA members. Contact Cheryl Hampton at champton@limerockresources.com for details.
CAPDOA DADOA
OPEN
Kelly Sandoval, CDOA Kelly.sandoval@sitio.com
DALWORTH Lewis Box, CDOA lewis.box@gmail.com HADOA Emily Sheffield
esheffield@oglawyers.com
PBADOA
OPEN
SADOA
Dena Blevins dblevins@frontierland.net
Arkansas
OPEN
Kansas
Amy Flaming Amy.flaming@chsinc.com Kimberly A. Backman kbackman@crowleyfleck.com Zachary P. Oliva zoliva@oglawyers.com Margaret Patton mpatton@pattonfirm.com
North Dakota
New Mexico
Louisiana
2024 News Magazine Team Rona Erickson , CDOA Editor Susan Bradley, CDOA Associate Editor Cheryl Hampton Associate Editor
Armando Lopez Associate Editor
Sonya Turner, CDOA Associate Editor
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N at i onal A ssociation of D i v i s i on O rder A nalys t s
CANDIDATES FOR CERTIFICATION Publication of the following “Certified Division Order Analyst” applicant(s) fulfills the requirement as stated in the Voluntary Certification Policy, III C.2 which states: “…applicant’s name will be published in the NADOA Newsletter or other official publication of NADOA.” This allows the NADOA membership an opportunity to present objections to the certification of the applicant. Any objection to the certification of the applicant must be in writing and signed by a NADOA member or non-member who qualifies his knowledge and objection of the applicant. All such letters will be considered confidential and must be received by the NADOA Certification Committee at the following address within thirty (30) days following the last day of the month in which the Newsletter or other official publication of NADOA was published: NADOA Certification Committee P O Box 1656 Palm Harbor, FL 34682 If the objection warrants denial of the certification or temporary withholding of certification, the applicant will be notified by Certified Mail. CANDIDATES FOR CERTIFICATION
CANDIDATES FOR RECERTIFICATION Tim W. Deck – Dallas, TX Mary Frances Anglin - Edmond, OK
Amber Croisant – Oklahoma City, OK
CONGRATULATIONS TO THE FOLLOWING NEW CDOA!! Cyrus L. Perkins – Houston, TX MID-YEAR Recertifications Notice • Please let us know ASAP if you would like your renewal dates to roll forward or back. The committee will be assisting you with this and the employment credits so that you can make the best decision for yourself. Beginning November 1, 2024, the committee will automatically go in and begin adjusting dates, reaching out via email or phone. Make sure your credits are up to date. Please email cdoa@nadoa.org with your questions.
• Below are those eligible for 2024 mid-year CDOA Recertifications Randolph Keeney 615 HADOA Lisa Greer 341 DALWORTH
• HAS YOUR ACCOUNT BEEN INACTIVATED? Please reach out to the CDOA Committee at cdoa@nadoa.org. We’ve done some housekeeping and updated older accounts. If you have retired, email us and we’ll update your account!!!! • 01/01/2025 RENEWALS WILL BE HERE BEFORE YOU KNOW IT! The CDOAs below renew 01/01/2025 and the committee is asking you to be PROACTIVE. Please log into your CDOA account today and make sure your points are up to date and go ahead and get your renewal
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application started. Remember that employment points cannot be updated until December so add an appointment to your calendars.
Name ID Albert Studer INACTIVE . . . . . ....... 616 Amy Smith . . . . . . . . . . . ........... 575 Angela Dempsey . . . . . . . . ......... 696 Anita Hulsey . . . . . . . . . . ........... 428 April Hubbard . . . . . . . . . ........... 618 Barbara Davis . . . . . . . . . ........... 425 Brandon Wallace . . . . . . . . ......... 692 Christine Herron INACTIVE . . . . ..... 617 Cynthia Allison-Hynson . . . . . ....... 436 Dalton Donaldson . . . . . . . ......... 539 Daniel Dovalina . . . . . . . . .......... 694 Danny Peach . . . . . . . . . . ........... 574 David Carrico . . . . . . . . . ........... 302 David Elliott . . . . . . . . . . ........... 432 Dawn Podrazik . . . . . . . . . .......... 620 Dea Mengers . . . . . . . . . ........... 569 Douglas Potter . . . . . . . . . .......... 272 Evan Hanes . . . . . . . . . . ............ 693
Jacqueline Clotfelter . . . . . . ........ 427 John Massie . . . . . . . . . . ........... 565 Laurie Chase . . . . . . . . . . ........... 414 Leigh Price . . . . . . . . . . ............ 579 Lisa Greer . . . . . . . . . . . ............ 341 Maryann Maimo . . . . . . . . ......... 697 Melanie White . . . . . . . . . .......... 619 Nicholas Brewer . . . . . . . . .......... 695 Randolph Keeney . . . . . . . . ......... 615 Roxanne Heath . . . . . . . . . .......... 568 Scott Strahan . . . . . . . . . ........... 560 Shirley Smith . . . . . . . . . . .......... 571 Stanley Vargas . . . . . . . . . .......... 698 Tanya Almon . . . . . . . . . . ........... 316 Teresa Offutt RETIRED . . . . . . ....... 563 Terri Zurowski INACTIVE . . . . . ...... 418 Valerie Wible . . . . . . . . . ........... 576 Yoli Colletti . . . . . . . . . . ............ 621 Name ID
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N at i onal A ssociation of D i v i s i on O rder A nalys t s 210 Park Avenue, Suite 2300, Oklahoma City, OK 73102
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THIS IS AN ADVERTISEMENT
Cob Webs
Educational webinars can be approved for 1 (one) CDOA certification point. NADOA webinars, Steptoe & Johnson
Opportunities include: creating webinar flyers, contacting speakers before a webinar event to obtain biographies and presentations, help modernize NADOA’s GoToWebinar site. Please email webinars@ nadoa.org if you are interested. The 2024 Webinar Co-Chairs, Gordon Gallet, Heather Lister and Jamie Meyer would love to hear from you! Steptoe & Johnson PLLC – Visit: https://www.steptoe-johnson.com and click on News for details. The Steptoe webcasts are recorded. To access previously recorded webcasts, go to www.Steptoe- Johnson.com and enter Webcasts in the search feature. Oliva Gibbs LLP – Energy Education Series: Visit www.oglawyers.com/ events for further information. NARO – Visit https://www.naro-us.org/events/list for webinar schedule. If you are aware of other educational webinars, please advise the NADOA News Magazine of details to be added to the Calendar of Events ( magazine@nadoa.org ).
PLLC webcasts and Oliva Gibbs LLP webinars are pre-approved. Please check the certification page to determine if other webinars are pre-approved or need to be submitted for approval to the NADOA Certification Committee. Contact the CDOA committee to obtain pre-approvals at cdoa@nadoa. org. Certification points should only be applied for after completing the event. If you are unable to attend an event due to unforeseen circumstances, it is an ethics violation to apply for the credit. NADOA – Webinar information and registration links will be posted on the website ( www.nadoa.org ). Webinars are free for NADOA members and $15.00 for non- members. NADOA members may use the following link to log in and register for upcoming webinars as well as listen to previously recorded webinars: https://nadoa.wildapricot.org/ page-1709226 or by using the Webinar link in the Members Only section on the homepage. Please send suggestions for NADOA webinar topics/ speakers to webinars@nadoa.org . Details for upcoming NADOA Webinars can be found at: https://nadoa.org/news-events/ The webinar committee is looking for volunteers.
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2024 DALLAS - FORT WORTH REGIONAL EDUCATIONAL SEMINAR A guide to escheat
On June 5 & 6, NADOA held its first regional seminar since 2012 and the turnout was fantastic; 77 members & non-members gathered at KPMG’s office in downtown Dallas. Will King, Quin Moore and Sarah Rubel did an excellent job going over all the different aspects of Escheat, from Beginners 101, Due Diligence, Record Retention, VDA’s and more. We had a four-member panel of Division Order Analysts answer various questions about their experiences and company’s handling of processing escheat, which turned out to be very educational. We got back a lot of great reviews from our attendees on what they liked and hoped to see at future seminars. The Board has discussed future seminars and hopefully will have one planned soon for next year.
We’d like to thank all the attendees who joined us and especially those who came in from out of town and state. A special thank you to KPMG for hosting the seminar.
Kim Bowman Norma Dooley
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NARO ROCKIES CONVENTION June 14, 2024 By Cori Peth
Division Orders 101. This sounded like a relatively easy topic to cover for NARO, but as I thought about it, I had to take a step back. Having worked in oil and gas for almost two decades, I found it easy to take items like a Division Order form for granted! What did I need to cover and how could I keep it interesting? I see these forms constantly, but for many owners, it’s a brand-new concept. Being asked to sign a form can sound very official and even scary, especially coming from a big, bad oil company. What is it? Why do I have to sign it? Do I have to sign it? Oil and gas companies get such a bad rap from the media and Hollywood. I remember a man once called me and was asking some very strange questions about his lease. It was like he wanted me to get frustrated with him (I didn’t). It turned out he wasn’t even one of our owners, and he smugly ended the conversation with, “Well, I’ve been watching Dallas. So, I’m learning about all the ways you oil companies are trying to scam me.” Hold please. First and foremost, I want everyone to know that we Division Order Analysts are your friends. We’re here to answer your questions. We want you to understand what you own and most importantly, we want you to get your money! We love giving you money! It’s like playing Santa! Back to the NARO conference… After walking through the Division Order form, and hopefully unraveling its mysteries, we talked about timing
and why it can take several months to get those royalty checks. We also discussed some tips for communicating with your Analyst:
o Know your owner number o Keep a file with your paperwork
o Write down your questions before you call o Include your phone number, email address and physical address when you mail documents to us It was especially good to hear from the owners and better understand their concerns. They want to talk with us, to understand their decimal interest, and to be reassured that we take their questions seriously. This conversation confirmed we share the same goals and are on the same team. I’m grateful I had this opportunity, and am glad to know an organization like NARO exists to help bridge the gap between owners and analysts…
…and those big (not so bad) oil companies.
Avoid headaches from explaining the ins and outs of royalty ownership to your interest owners... ...Let us help! National Association of Royalty Owners PO Box 131090, Spring, TX 77393 www.naro-us.org Phone: 918-794-1660
• Fact-filled pamphlets and books
• Royalty management seminars
• Royalty owner helpline
• Web site education resources
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Educating in the Heart of America NADOA 2024 Institute Omni Oklahoma City 100 West Oklahoma City Boulevard Oklahoma City, OK 73109 October 2-4, 2024 NADOA Institute Don’t wait to register – time is running out!!
Institute Registration: Member - $825.00 Non-Member $925.00 NADOA - NADOA 51st Annual Institute (wildapricot.org) Registration includes: Wednesday Classes and Welcome Reception Thursday and Friday Classes Breakfast and Lunch on Thursday and Friday Thursday Night Event – Chicken N Pickle Game Night
Room rate for Institute attendees: $199.00/night plus taxes Hotel Reservations may be made by going to: Hotel Reservations or clicking the link on NADOA’s website at http://www.nadoa.org or by scanning this QR code:
within this time frame, 1 night plus taxes will be charged as a cancellation fee. Event Parking: All parking at the hotel is conducted by the valet. The current overnight rate for valet parking is $35.00 + tax per vehicle per night. Self-parking is available in the public city garage for $10.00/night. Certification credits: CDOA – 20 core, 4 non-core AAPL (RL/RPL/CPL) – 19 CPLTA – 22 core, 10 non-core CMM, RMM – Credits awarded on sessions attended Please note that each certified member will be responsible for submitting their individual affidavit of attendance form to the respective association for accreditation.
The NADOA room rate will be available 3 days pre and post Institute. Hotel reservation deadline – September 6, 2024. All hotel accommodations will be the responsibility of the registrant. Hotel cancelations must be made within 72 hours of check-in. If not made
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INFORMATION Brenda Pirozzolo, CDOA, Co-Chair and Betty Davidson, CDOA, Co-Chair
Don’t miss out on the opportunity to get Educated in the Heart of America at NADOA’s 51 st Annual Institute to be held at the Omni in Oklahoma City, OK October 2 – 4, 2024. Visit the websites or see the Special Institute Edition of the NADOA Newsmagazine for additional information on the following : DINING Oklahoma City Restaurants, Breweries & Local Food Trucks (visitokc.com)
Dates: October 4, 2024 - October 20, 2024 Price: Admission: TBA, members & kids (2 & under), free. Time: 10:00 AM to 5:00 PM Recurrence: Recurring weekly on Sunday, Tuesday, Wednesday, Thursday, Friday, Saturday Scissortail Park https://scissortailpark.org The Pioneer Woman Mercantile https://www.themercantile.com/
https://www.visitokc.com/restaurants/
Check out the Oklahoma City food truck scene for an exciting change . GET THE DIGITAL OKLAHOMA CITY VISITOR’S GUIDE https://www.visitokc.com/plan-your-visit/ visitors-guide/digital-visitors-guide/
https://www.okcciviccenter.com/
https://myriadgardens.org/visit-us/ Pumpkinville at Myriad Gardens
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https://www.czechfestivaloklahoma.com/ Oklahoma Czech Festival Saturday Oct. 5 1-10pm 205 S Czech Hall Rd Yukon, OK Oklahoma City Zoo
https://nationalcowboymuseum.org/ National Cowboy & Western Heritage Museum If museums are your jam, Oklahoma City is a great place to visit. Check out these sites: Oklahoma City National Memorial and Museum https://memorialmuseum.com Oklahoma City Museum of Art
https://www.okcmoa.com First Americans Museum https://famok.org Science Museum Oklahoma https://www.sciencemuseumok.org American Banjo Museum https://americanbanjomuseum.com Ride the streetcar
Riverwind Casino https://www.riverwind.com/ Chris Janson & Easton Corbin Showplace Theater October 5, 2024
Buy tickets at any streetcar stop, hop on and choose your stops to hop off for dining or sightseeing in City Center, Midtown, Bricktown, Automobile Alley or the Paseo Arts District. SCOOTERS – AN EASY WAY TO GET- AROUND TOWN
https://www.remingtonpark.com/casino-home/ Live racing September 29, 2024 FOOTBALL & TAILGATING FUN West Virginia Mountaineers at Oklahoma State Cowboys Boone Pickens Stadium - Stillwater, OK SATURDAY Oct 05 TBA
https:// www.uber.com > ride > scooters
Electric Scooter Rental Tap the scooter icon in the Uber app and reserve nearby electric scooter , or simply walk up to the ve- hicle to get started. Start riding.
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GREETERS NEEDED! NADOA 51ST INSTITUTE OKC OCTOBER 2-4, 2024 Volunteering is a great way to give back to your organization. You will meet many other attendees, make new friends and it is also a lot of fun. You will be assigned a two-hour greeting time that works with your schedule. If you have not volunteered before we would love to have you join us this year. We look forward to hearing from you. Please contact Betty Davidson at 713-409-4865 or clucorkie@yahoo.com Brenda Pirozzolo at 214-924-9200 or Bpirozzolo21@gmail.com
Join Us for Institute in Oklahoma City! The registration committee is excited to welcome you to Oklahoma City for this landmark event. Get ready for a stimulating experience filled with learning, collaboration, and making lasting connections. We look forward to seeing you there! Registration Desk Hours Once you arrive, come say hello and pick up your lanyard! The registration desk will be open at the following times: • Tuesday, October 1: 2pm - 6pm • Wednesday, October 2: 7am - noon & 2pm - 6pm • Thursday, October 3: 7am - 9am
Debbie McKee Co-Chair Valerie Wible, CDOA Co-Chair Amanda Lynch, CDOA Co-Chair
Iris Alcantara Co-Chair Melanie Westbrook, CDOA Co-Chair
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The Vendor Committee would like to welcome our confirmed Vendors to the 51 st Annual Institute in Oklahoma City, OK! A big thank you to the following confirmed vendors: Vendor Fair The Vendor Committee would like to welcome our confirmed Vendors to the 51st Annual Institute in Oklahoma City, OK! A big thank you to the following confirmed vendors: Covius Print Ready Services EAG Inc. Elk Range Royalties Enverus Georgeson IFS Lando Solutions LLC Martindale Consultants Inc Pak Energy Russell T. Rudy Energy S & J Land Admin. Services LLC SOVOS Compliance LLC TEAM TexasFile Title Law Group Covius Print Ready Services EAG Inc. Elk Range Royalties Enverus Georgeson IFS Lando Solutions LLC Martindale Consultants Inc Pak Energy Russell T. Rudy Energy S & J Land Admin. Services LLC SOVOS Compliance LLC TEAM TexasFile Title Law Group Is your favorite software/service provider missing from the above? Have them reach out to Gordon Gallet – gordon@elkrange.com (337) 258-5730 and we’ll get them registered! Is your favorite software/service provider missing from the above? Have them reach out to Gordon Gallet – gordon@elkrange.com (337) 258-5730 and we’ll get them registered! Vendor Form Link
NADOA GOLF TOURNAMENT LINCOLN PARK GOLF COURSE 4001 NE GRAND OKLAHOMA CITY, OK 73111 October 2, 2024 1-5 pm All levels of play accepted Green fees/cart $55 Seniors 62+ $43 Club rentals $15 – basic $30 – Titleist/Callaway/Ping All golfers eligible for gift card drawings. Sign up early so you are guaranteed a golf shirt donated by Pegasus Resources. Transportation to course by 15 passenger Ford Transit Van from STEMTREE.
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NADOA 2024 ANNUAL EDUCATIONAL INSTITUTE OMNI Hotel – Oklahoma City, OK October 2-4, 2024 Link to Donation Form
SPONSOR DONATION FORM Thank you for your sponsorship. Your donations help with the cost of our speakers, hospitality functions, conference publications, including a compilation of our speakers’ presentations, as well as to cover general fund- administrative costs. We have attached suggested contribution levels. However, please keep in mind that these are suggestions – all contributions will be recognized. This financial support helps reduce the costs to all attendees and allows NADOA to present a professional, quality educational event . If you would like to apply your sponsorship to a specific category, you may indicate that preference below.
CATEGORY
AMOUNT
General Donation (includes administrative costs, door prizes, etc.) Education / Speaker Hospitality Functions Publications Golf Tournament
SPONSOR INFORMATION
Company Address
City, State, Zip Email Address Phone Number Contact Person
N at i onal A ssociation of D i v i s i on O rder A nalys t s To assure that your name will be published in the NADOA Institute Brochure, please return your donation, along with this form to NADOA no later than July 1, 2024. Corporate sponsorships received after this date will be published in subsequent publications. PLEASE RETURN THE FORM AND CONTRIBUTION TO: NADOA PO BOX 1656 Palm Harbor FL 34682 For questions , please contact: Vicki Danielson Melissa Fontana Corporate Donations Co-Chair Corporate Donations vdanielson@att.net Melissa@iberiamansys.com 713-417-7330 713-893-9274 14
Donation Categories
Donation Categories
$10,000+
BLACK Gold
$5,000-$9999
FARM ON! Feeding the World
Indian Spirit
$3,500-$4999
$2000-$3499
Tornado Alley
$1000-$1999
Queen of Country
$500-$999
Cowboys/Boomer Sooner!
Up to $499
Rip Roaring Rodeo
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Come ride with us on the ART & ARCHITECTURE BIKE TOUR NADOA is partnering with Ride OKC to provide a fun and exciting way for you to see the city! To sign up, please contact Michelle.N.Fairclough@gmail.com Date: Wednesday, October 2, 2024 Time: 1:00 p.m. - 3:00 p.m. Price: $49 per person What to Expect:
• A fun , leisurely 7.5 mile ride into OKC’s downtown districts. The ride consists of mostly flat terrain that stops frequently for photo opportunities. • Key attractions such as the Oklahoma National Memorial, Overholser Mansion, Olympic Training Site and a quick pit stop at one of Oklahoma’s brewery’s for a tasting. We will also discover off the beaten path hidden gems not found on maps or travel books. • Our tours have been designed so that riders of all skill levels can participate. We make frequent stops every 5-10 minutes to relax, get off the bikes and see cool stuff. What Kind of Bikes are Provided?
• Priority Bicycles, the easy to ride 3 speed bikes are internally geared and come with a belt instead of a chain for reduced maintenance. No more grease or pointy sprockets to catch your clothes. The bikes are comprised of lightweight aluminum frames and puncture resistant tires to keep your ride worry free. Helmet (optional) and water bottle cage also come standard with each bike rental. Front basket available upon request. Can I Bring My Own Bike? • Yes! Bring your own bike or scooter , just don't add a bike at check out.
Hotel Welcome to the beautiful Omni Hotel in downtown Oklahoma City! The Omni Hotel sits across from Scissortail Park and offers excellent views of the park or the downtown skyline. There are 605 rooms which include robes, an in room safe, Keurig coffee makers, a mini refrigerator and Wi-Fi. There are seven dining areas in the Hotel as well as a rooftop pool, a fitness center and the Mokara Spa. Plan on coming early or staying the weekend after to enjoy this beautiful hotel and all it has to offer!
Valet Parking is available for those who drive in. Check in time is 4:00 pm and checkout time is 11:00 am. This year we will have a check out location by the general assembly room to help accommodate those leaving Friday evening.
See you in October!
Cheryl Hampton Lisa-Buffaloe-Atherton Sonya Turner Hotel Co-Chairs
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Donate a Door Prize Donors will be featured at Institute & in the NADOA Newsmagazine
Contact Us!
Michelle Davila michelle davila@pogresources.com
Quint Withers Quint@mcgowanwp.com
Hospitality The Wednesday Welcome Reception on October 2nd is a come and go event from 2pm until 6pm. Register for Institute, greet friends, grab a snack and go explore Oklahoma City. After a full day of informative classes on Thursday, October 3, attendees and guests will be bused to the fabulous Chicken N Pickle at 6pm for a fun filled evening! Six pickle ball courts with equipment have been reserved for NADOA. Bingo will be offered from 7pm until 9pm with prizes available to win. There will also be shuffleboard, foosball, ping pong, and corn hole. The double-sided food display is self-serve, with a choice between 2 proteins and 2 sides, along with a salad. Dessert will also be available! Everyone will receive two drink tickets for alcohol (unlimited nonalcoholic beverages are available all night). For this event, let’s keep it relaxed and comfortable – please dress casually (tennis shoes if playing pickle ball)!
www.chickennpickle.com
Elisa Evans, Lindsey Brown, Joe Carpini Hospitality Co-Chairs
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Legal
Updates Articles are not intended to be and should not be relied upon as legal advice or to establish any kind of an attorney-client relationship with the author.
Marsha Ellison, D/B/A Ellison Lease Operating v. Three Rivers Acquisition LLC., et al. 1 Seven Failures by the Texas Supreme Court to Follow Stare Decisis and the Result Is - ??? By Terry E. Hogwood, Attorney
Texas
Until 2008, no one in the chain of title ever complained about the description of the lands at issue (301 acres) as being ambiguous or unlocatable. In fact, until that date, all owners in the chain of title knew that this description covered and pertained to 301 acres. The instant litigation was supposedly an inquiry into the ownership of this 301 acre tract via trespass to try title parameters. At no time during the litigation did anyone in the chain of title or otherwise (any party or any court) ever deny that vested legal title to the 301 acre tract (including the disputed 154 acre tract) was in Mrs. Ellison. At no point in the litigation did any of the oil companies claim that the description was ambiguous and/or not locatable on the ground. In fact, there was uncontested testimony that the location of the referenced road was locatable and that the pathway of the road had never moved SINCE BEFORE 1927.
The following is a very limited statement of facts underlying the decision in the Ellison case. For purposes of this paper, in addition to the following general fact statement, under the discussion of each rule of law potentially overruled by the Texas Supreme Court (“The Court”) and identified herein, the specific facts under the pertinent section necessary for the reader to understand the significance of The Court’s decision on that particular rule of law will be set forth.
What are the Ellison Case Facts?
Common title to the land at issue in the case (and other lands) originated with a deed dated July 26, 1927 from W. M. Hemphill, Trustee by E. S. Briant, Indep. Exec. of the Estate of J.D. Sugg, dec’d to the Noelkes as part of a land swap (Vol./ Pg 17/18, Deed Records of Irion County, Texas) (“The 1927 Deed”). The 1927 Deed contained the following tract description language identifying the lands at issue: “Second Tract: All of Survey 1, Block 6, H. & T.C. Ry. Co. lands located North and West of the public road which now runs across the corner of said Survey, containing 147 acres, more or less.” (emphasis added) 2 A pictorial representation of this description is found as Exhibit “A” to this paper. It reflects the lands conveyed by this deed and located according to this description actually contains 301 acres (area outlined in blue).
Somehow, some way, Samson’s landman,
Tim Reece, was allowed to testify to a past conversation(s) with a then (at the time of trial)
[1] (“ Ellison Case”) Ellison v. Samson Res. Co ., 23-0267 (Tex. Dec 15, 2023) Concho Resources, Inc. et al. v. Ellison , 627 S.W.3d 226 (Tex. 2021) Ellison v. Three Rivers Acquisition LLC , 609 S.W.3d 549 (Tex. App. - 2019) Ellison v. Samson Res. Co ., 13-17-00046-CV (Tex. App. Feb 10, 2022) Ellison v. Three Rivers Acquisition LLC , 13-17-00046-CV (Tex. App. Dec 15, 2022) [2] Concho Resources, Inc. et al. v. Ellison , 627 S.W.3d 226, 228 (Tex. 2021)
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deceased Mr. Ellison. He testified that there was concern by the parties (Mr. Ellison and Samson) over the location of the “147 acre” tract, including the 154 acre disputed tract and that the parties needed to somehow settle the location of said tract. It must be understood that both sides in the litigation knew that the Ellison 147 acre tract actually contained 301 acres and had confirmed such understanding in earlier tax documents and railroad commission documents. It cannot be emphasized enough – THERE ARE NO FIELDNOTES NOR OTHER DESCRIPTION(S) ANYWHERE IN THE IRION COUNTY DEED RECORDS OF THE 154 ACRE DISPUTED TRACT. THE PLAT REFLECTING SAME WAS CREATED – METHOD UNKNOWN. THE ROAD IS STILL WHERE IT HAS ALWAYS BEEN ALTHOUGH ELIMINATED ON PLATS FILED BY THE DEFENDANT OIL COMPANIES IN SUBSEQUENT ADMINISTRATIVE FILINGS. (See Exhibits “A-1” and “A-2”) Mr. Reece prepared a document (“2008 Boundary Stipulation”) to be signed by the mineral owners on both sides of the road, thereby creating a “new” 154 acre tract out of nothing (See Exhibit “B” for a partial copy and Exhibit “A-1” for the described plat). Reference to this instrument will be made throughout this paper. He then created what can only be called the title conveyancing document – a letter agreement with no grantor/ grantee, no stated consideration, no words of grant or ratification, not signed by Mr. Ellison’s wife (the leasehold interest was community property) and the promise of a more formal recordable document to be furnished (which it never was), herein the “October 16, 2008 Letter” found in Exhibit “C”. Please, stop reading and turn to Exhibit “C”. This is the instrument that The Court held took the title to the leasehold estate to154 acres away from a widow and delivered it to wealthy oil companies FREE. And with no words of conveyance……This document will be analyzed in more detail later in this paper. The purpose of this paper is to explore the brave new world the Texas Supreme Court has created due to its interpretation of the seven (7) real property rules of law herein identified
and to be aware that the rules of real property law that existed prior to this case may have been dramatically and permanently changed. But first, the legal underpinnings of stare decisis in Texas as well as when the overruling of a case is to be applied prospectively only or retrospectively.
Stare Decisis Generally in Texas
“As originally conceived and as generally applied, the doctrine of stare decisis governs only the determination of questions of law and its observance does not depend upon identity of parties. After a principle, rule or proposition of law has been squarely decided by the Supreme Court, or the highest court of the State having jurisdiction of the particular case, the decision is accepted as a binding precedent by the same court or other courts of lower rank when the very point is again presented in a subsequent suit between different parties. As a general rule the determination of a disputed issue of fact is not conclusive, under the doctrine of stare decisis , when the same issue later arises in another case between persons who are strangers to the record in the first suit.” 3 So, generally, the issue to be addressed with each of the seven identified principles of law apparently/potentially overruled by Ellison is whether the same rule or principle of law so identified had been previously ruled on by The Court. If the answer to that question is yes, then the issue becomes whether Ellison overruled that principle of law? And if it was overruled, how did Ellison overrule that principle of law? These issues will be addressed in each of the seven principles of law identified in this paper.
Changing the Rule of Law
Nothing in the history of stare decisis expressly forbids the changing of an existing rule of law (although The Court used to be reluctant to change real property rules of law 4 ) However, over time, for various reasons, The Court has found it necessary to overrule various earlier precedents.
[3] Swilley v. McCain , 374 S.W.2d 871, 875 (Tex. 1964) [4] Robbins v. HNG Oil Co., 878 S.W.2d 351 (Tex.App. — 1994)
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any of the seven rules of property law, what is the legal effect of the holding in Ellison? Unknown. What the author does know is that a true legal conundrum is coming – what happens when next each of the seven rules appears in another case(s)? Is the old rule to be followed or the “new” one as expressed in Ellison ? Unknown.
“ The court of appeals in this case followed established law. It is not the function of a court of appeals to abrogate or modify established precedent. See Stark v. American Nat’l Bank of Beaumont, 100 S.W.2d 208, 212 (Tex. Civ. App. Beaumont 1936, writ ref’d). That function lies solely with this Court. Id. Generally, the doctrine of stare decisis dictates that once the Supreme Court announces a proposition of law, the decision is considered binding precedent. See Swilley v. McCain, 374 S.W.2d 871, 875 (Tex. 1964). However, circumstances occasionally dictate reevaluating and modifying prior decisions. This Court may modify judicially created doctrines, Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733, 735 (Tex. 1985), and in this instance such a change is warranted. 5 “Finally, the doctrine of stare decisis does not stand as an insurmountable bar to overruling precedent. Stare decisis prevents change for the sake of change; it does not prevent any change at all. It creates a strong presumption in favor of the established law; it does not render that law immutable. Indeed, the genius of the common law rests in its ability to change, to recognize when a timeworn rule no longer serves the needs of society, and to modify the rule accordingly 6 …” The cases where The Court overrules previous precedent generally finds The Court carefully analyzing the issue from both sides and thereafter thoughtfully setting forth its reasons for overruling the previous decision/line of cases. Not so here! Oh no, no thoughtfulness here. Seven, count them, seven rules of law had to be at least impliedly overruled in order to reach the result of the case – Widow loses, oil companies win. The reader can be assured that at no point in the case did The Court ever explicitly overrule the principles of law governing the seven rules of law identified herein. However, without explicitly overruling the seven rules of property law the decision should have gone the other way (as it did in the first Court of Appeals decision 7 ).
Retrospective/Prospective Application
One other aspect of this case and the overruling of the herein identified legal principles concerns whether the “new” rule of law is to be applied retrospectively or prospectively only. For sure, the legal principles of law enunciated by The Court were applied in the instant case. Otherwise, The Court could not have reached the conclusion that it did. What is not expressed in The Court’s several opinions is whether the rules of law ignored/rejected/overruled etc. will apply to fact situations which have arisen in the past but have not been litigated or whether they will only apply to fact situations arising after the date of The Court’s most recent opinion on the matter. Or, whether this was a one-off case with the principles of law announced by The Court to only be applied in the instant case. Generally, a Supreme Court of Texas decision is to be applied retrospectively. Without direct guidance from The Court, we are left with a three part test adopted by The Court and quoted below to determine retrospectivity: 8 “…— First, the decision to be applied non- retroactively must establish a new principle of law, either by overruling clear past precedent on which litigants may have relied, or by deciding an issue of first impression whose resolution was not clearly foreshadowed. — Second, [the court] must ... weigh the merits and demerits in each case by looking to the prior history of the rule in question, its purpose and [5] Lubbock County v. Trammel’s Lubbock Bail Bonds , 80 S.W.3d 580, 585 (Tex. 2002) [6] Gutierrez v. Collins , 583 S.W.2d 312, 317 (Tex. 1979) [7] Ellison v. Three Rivers Acquisition LLC , 609 S.W.3d 549 (Tex. App. 2019) [8] Sanchez v. Schindler , 651 S.W.2d 249 (Tex. 1983)
Since The Court did not explicitly overrule
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effect, and whether retrospective operation will further or retard its operation. — Finally, [the court must] weig[h] the inequity imposed by retroactive application, for where a decision of [the court] could produce substantial inequitable results if applied retroactively, there is ample basis in our cases for avoiding the injustice or hardship by a holding of nonretroactivity. 404 U.S. at 106–07, 92 S.Ct. 349 (citations and quotations omitted).” 9 First, in Ellison, the rules of law being addressed are not clearly and unequivocally overruled. Clearly, The Court is not deciding an issue of first impression since each of the rules of law potentially overturned have been in place, in some instances, for over 100 years. Second, there is no evidence that The Court analyzed the history of the rules of law being overruled or that it evaluated whether the decision should be retrospective or prospective only.
a partial copy of the pertinent provisions of the 2008 Boundary Stipulation. The Court specifically refused to acknowledge or even address the issue of whether the 2008 Boundary Stipulation was a conveyance in spite of the actual contents of the instrument. “… Alternatively, Concho asserts that the stipulation is effective as a conveyance. We agree with Concho’s primary argument and do not address its alternative argument.” 11
In Footnote 10. in the case, quoted in
pertinent part, The Court further held:
“… Because we hold that the stipulation was not void, we need not address whether a contrary holding would summarily foreclose Concho’s ratification defense.” 12 Five very specific provisions in the 2008 Boundary Stipulation clearly classify it, as a matter of law , as a deed. These provisions are: Provision One - Two distinct sets of owners were identified as participants in the 2008 Boundary Stipulation (conveying of sufficient mineral interest each to the other to effectuate the purposes of the instrument): (i) Andrew A. Sugg et al as owners of the minerals under the 493 acre tract and (ii) Carol S. Richey, Trustee of the Richey Living Trust as owner of the mineral estate under the 147 acre tract. The legal effect of the instrument is two-fold: First, to identify the mineral owners under the completely made-up tract locations as herein identified. Second, by such identification and the incorporation of express words of grant, conveying to those mineral owners’ grantors/ grantees sufficient mineral interests to vest each with the interests being stipulated. [9] Life Partners, Inc. v. Arnold , 464 S.W.3d 660, 684 (Tex. 2015) [10] Parts of the discussion under each of the seven subparts is taken from an amicus brief submitted by the author in the Ellison case. No attribution will be made by choice of the author. [11] Concho Resources, Inc. et al. v. Ellison, 627 S.W.3d. 226, 234 (Tex. 2021) (emphasis added) [12] Concho Resources, Inc. et al. v. Ellison, 627 S.W.3d. 226, 234 (Tex. 2021)
Finally, there is no evidence that The
Court weighed the inequity imposed by retroactive application of the new rules of law.
Conclusion: At best, the “new” rules of law as identified in Ellison should only have been applied prospectively and not in this case. The purpose of this paper is to identify the principles of law The Court did address, how and under what circumstances these principles have been applied prior to this case and whether the present application is an express/implied overruling of the case or an example of The Court finding a “new” interpretation of an old real property rule to achieve a “just” decision in the case.
The Seven Rules of Law Not Followed (Overruled?) in Ellison 10
Rule of Law No.1 - What constitutes a deed/
conveyance?
The reader is referred to Exhibit “B” for
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Provision Two – For whatever reason, The Court looked at the following language but then declined to hold that the insertion/inclusion of same made the instrument a conveyance, to wit: “To reinforce the ownership of the mineral estate under the two tracts of land, the following provision was inserted into the instrument: This Stipulation shall be deemed to contain adequate words of grant and conveyance as are necessary and proper to transfer and vest the ownership of the mineral estate in the Lands in each of the parties and proportions set out above.” Provision Three - The instrument and agreement of the parties was retroactively made effective as of July 8, 1987.
The last paragraph on page one of the 2008 Boundary Stipulation, as a matter of law, absolutely contains adequate words of grant and, coupled with a legally adequate description of the properties sought to be conveyed by and between the parties (as found in the instrument), clearly meets the requirements for, and intention to be, a (mineral) deed/conveyance under Texas Law. 14 The Court, by merely stating that it would not address Concho’s (and Ellison’s) argument that the 2008 Boundary Stipulation was a conveyance, does not make the instrument any less of a legal conveyance. The 2008 Boundary Stipulation is in fact and law both a contract and a conveyance . 15 The foregoing cited cases and their progeny represent the Texas legal precedent on the issue of stare decisis that was ignored by this Court and had to be ignored so that no correction deed analysis under Texas law could be performed with the resultant finding that, as a matter of law, the 2008 Boundary Stipulation was a VOID CORRECTION DEED and COULD NOT BE RATIFIED (See 4. And 5. Below) Was the rule of stare decisis not followed in this case where The Court refused to address the issue of whether the 2008 Boundary Stipulation a conveyance? In the author’s opinion, Yes. Were the rules governing what constitutes a conveyance in Texas expressly/impliedly overruled? Unknown. Does this case stand for some new rule of law? Unknown. If so, what is that rule? Unknown. All that is known is that the 2008 Boundary Stipulation was not, according to The Court, a conveyance. Does The Court’s refusal to even address the issue as indicated herein result in new rules of law governing conveyances? If not, what does Ellison stand for? Unknown. NOTE: To hold that the 2008 Boundary Stipulation was anything other than a deed is to potentially invalidate the thousands of similarly [13] Copeland v. Alsobrook , 3 S.W.3d 598, 606 (Tex. App. 1999) [14] Harris v. Strawbridge , 330 S.W.2d 911 (Tex. Civ. App.—1959). See also Brown v. Byrd , 512 S.W.2d 753 (Tex. Civ. App.— 1974) [15] Renwar Oil Corp. v. Lancaster , 276 S.W.2d 774 (Tex. 1955); Samson Exploration, LLC v. T.S. Reed Props., Inc ., 521 S.W.3d 766 (Tex. 2017)
Provision Four - The instrument was signed
by all affected parties.
Provision Five – Adequate consideration was recited to have been paid (remembering that consideration does not have to be monetary in nature). It can also be the mutual promises made and to be performed by the parties such as the conveyance of such mineral interests so that both parties own all of the mineral interests in the described tracts. “Consideration is a present exchange bargained for in return for a promise. Roark v. Stallworth Oil & Gas, Inc., 813 S.W.2d 492, 496 (Tex. 1991). It can be either a benefit to the promisor or a detriment to the promisee. Id. It may consist of some right, interest, or profit, or benefit that accrues to one party, or, alternatively, of some forbearance, loss or responsibility that is undertaken or incurred by the other party. Solomon v. Greenblatt, 812 S.W.2d 7, 15 (Tex. App.-Dallas 1991, no writ). A promise for a promise is sufficient consideration in Texas…” 13 As a matter of law, there was no question that the grantors and grantees in the 2008 Boundary Stipulation were identified - they signed the conveyance.
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