2020 Q3

Reprinted by permission from the March 2020 Energy Update Newsletter authored by Terry E. Hogwood, terrye.hogwood@gmail.com, 713/823-4949. This newsletter was prepared by Terry E. Hogwood for use by his

clients and prospective clients as a reference tool only. Any comments and/or legal conclusions contained in this newsletter are solely those of the author and reliance thereon by any reader of this newsletter is at their sole risk.

Texas Law of Commingling – An Evidentiary Rule By Terry E. Hogwood Attorney-At-Law

Preliminary Statement Two terms used throughout this article need to be

by the Commingler of like or similar personal property owned by both the Commingler and Aggrieved Party into a uniform mass where each component of the mass cannot be distinguished one from the other. Legally, commingling is a rule of evidence that, upon the establishment of the fact of the occurrence of commingling by the Commingler, shifts the burden of proof to the Commingler to prove, with reasonable certainty, how much of the Aggrieved Party’s personal property it has commingled. Failing to meet that burden of proof can result in the forfeiture and vesting of all of the Commingler’s interest in the value of the commingled mass in the Aggrieved Party. For example, if a rustler took A’s cattle and mixed them with his own, and it could not be determined which cattle were A’s and which were the

identified and defined:

1. “Commingler” – This term refers to the party actively mixing (and confusing) its oil and gas with the Aggrieved Party’s oil and gas.

1. “Aggrieved Party” – This term refers to the party whose oil and gas has been commingled.

Commingling of personal property in Texas, or as it was originally called, ‘confusion of goods’, is not, in the author’s opinion, a separate and distinct cause of action. Physically , commingling is simply the gathering

Why choose LIS D.O. ? Set up and maintain ownership records Determine working interest and establish burden groups Resolve revenue and JIB discrepancies

LAND INFORMATION SERVICES LAND INFORMATION SERVICES

Why choose LIS D.O. ? Set up and maintain ownership records Determine working interest and establish burden groups Resolve revenue and JIB discrepancies Prepares preliminary Division of Interest, which includes reviewing leases with early pay provisions to ensure owners are included in the preliminary DOI to comply with the lease obligations. Prepares final and payout Division of Interest and performs calculations of interests for all owners reflecting accurate ownership in wells. Determines and calculates leasehold and unit interests. Analyzes title requirements, cures title defects, and determines owner pay status. Researches and resolves owner decimal discrepancies. Review and analyze title documents (deeds, assignments, probates, title opinions, affidavits, etc.) and process ownership changes for both Revenue and JIB. Responds o owner qui ies (email, written, phone) within a timely manner; investigates revenue suspense; interface r gularly with Clients, Revenue & JIB Accounting and Owner Relations. Liaise with landmen, owners, clients, and attorneys in obtaining or providing data and/or explanations with ownership breakdown. Sending Division Orders, Sending Well Exhibits, Preparing Mail-outs, Receiving Documents, Scanning images, and Logging Cases. Why choose LIS D.O. ? Set up a d maintain ownership records Determine working interest and establish burden groups Resolve revenue and JIB discrepancies

Land Admin professionals focused on providing your team with the highest level LIS Division Orders Prepares preliminary Division of Interest, which includes reviewing leases with arly pay provi ions to e sure owners are included in the preliminary DOI to comply with the lease obligations. Prepares final and payout Division of Interest and performs calculations of interests for all owners reflecting accurate ownership in wells. Determines and calculates leasehold and unit interests. Analyzes title requirem nts, cures title defects, and determines owner pay status. Researches and resolves owner decimal discrepancies. Review and analyze title documents (deeds, assignments, probates, title opinions, Responds to owner inquiries (email, written, phone) within a timely manner; investigates revenue suspense; interface regularly with Clients, Revenue & JIB Accounting, and Owner Relations. Liaise with landmen, owners, clients, and attorneys in obtaining or providing data and/or explanations with ownership breakdown. Sending Division Orders, Sending Well Exhibits, Preparing Mail-outs, Receiving Documents, Scanning images, and Logging Cases.

Prepares preliminary Division of Interest, which includes reviewing leases with early pay provisions to ensure owners are included in the preliminary DOI to comply with the lease obligations. Prepares final and payout Division of Interest and performs calculations of interests for all owners reflecting accurate ownership in wells. Determines and calculates leasehold and unit interests. Analyzes title requirements, cures title defects, and determines owner pay status. Researches and resolves owner decimal discrepancies. Review and analyze title documents (deeds, assignments, probates, title opinions, aidavits, etc.) and process ownership changes for both Revenue and JIB. Responds to owner inquiries (email, written, phone) within a timely manner; investigates revenue suspense; interface regularly with Clients, Revenue & JIB Accounting, and Owner Relations. Liaise with landmen, owners, clients, and attorneys in obtaining or providing data and/or explanations with ownership breakdown.

9 Land Admin professionals focused on providing your team with the highest level of back office Division Order support in the industry. Let the LIS Division Order team help organize and assist with projects large and small. Professionalismmeets expertise with full commitment to a job well done. www.lislv.com team help organize and assist with projects large and small. Professionalism meets expertise with full commitment to a job well done.

G r o w t h T h r o u g h E d u c a t i o n - J u l y / A u g u s t / S e p t e m b e r 2 0 2 0 Sending Division Orders, Sending Well Exhibits, Preparing Mail-outs, Receiving Documents, Scanning images, and Logging Cases.

info@lislv.com 1.833.LIS.TEAM

info@lislv.com 1.833.LIS.TEAM

www.lislv.co

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