Although the 2011 Stipulation may have been inadmissible to interpret the “unambiguous” Gips Deed, it stands alone as a new and separate agreement enforceable on its own terms. The 2011 Stipulation included words of present grant, cross-conveyance language, and a recital of new consideration paid. Stipulations of interest, per the court, are akin to settlement agreements – which are highly favored in the law and as a means of amicably resolving doubts and preventing lawsuits. The court also rejected Hahn’s arguments that the 2011 Stipulation was unenforceable due to insufficient legal descriptions and various other technical issues. It met with the requirements of both the Statute of Conveyances [9] and the Statute of Frauds. [10]
gas lease if their intent was only to consent to certain parts. Unusual or custom lease provisions could conceivably alter an NPRI if the ratification is too broad. For example, an NPRI owner who is only consenting to the pooling of his interest might expressly limit his ratification or style it as a “consent to pooling.” Otherwise, it may be argued that that he has conscripted his interest to other lease provisions which may or may not be beneficial and which might include, e.g. , the calculation of his interest (as argued in Hahn ), provisions regarding the deduction of post- production costs, separate lease or retained acreage provisions, the effect of unsigned division orders, or the timing of royalty payments. [11]
[9] Tex. Prop. Code § 5.021. [10] Tex. Bus. & Com. Code § 5.021.
VI. Conclusion: This is Why Title Examiners Love Stipulations of Interest
The court also rejected Hahn’s arguments that the 2011 Stipulation was unenforceable due to insufficient legal descriptions and various other technical issues. It met with the requirements of both the Statute of Conveyances and the Statute of Frauds.
Brian O’Gorman Phone : 713.229.0360 Email : bogorman@oglawyers.com
VI. Conclusion: This is Why Title Examiners Love Stipulations of Interest
Brian O’Gorman is an accomplished attorney and for- mer landman with more than 16 years of experience in the oil and gas industry. He represents clients in connec- tion with complex mineral matters, drilling and division order title opinions, and upstream oil and gas transac- tions. Prior to joining Oliva Gibbs, Brian served as Vice Pres- ident and Oil and Gas Land Supervisor at a large regional bank in San Antonio. He has a unique perspective having represented both mineral owners and operators. In addition to his professional accomplishments, Brian is an active volunteer for the San Antonio Legal Services Association. He is an avid music lover, having attended over 150 concerts, and recently developed a passion for pickleball!
This case serves as a reminder that a properly executed stipulation of interest, with words of present grant, cross-conveyance, and a recital of new consideration paid, is a powerful tool for clearing land and mineral titles. A stipulation executed by all necessary parties can fix or clarify any number of title issues, and even transmogrify an NPRI from fixed to floating. This is the reason that the stipulation of interest is a perennial favorite curative requirement among title examiners. With regard to NPRIs specifically, in most cases a stipulation of interest will be the most appropriate vehicle for modifying or clarifying whether it is fixed or floating. Hahn further illustrates that when an NPRI owner ratifies an oil and gas lease, the general presumption is that he is consenting to pooling only. However, NPRI owners should be cautious about broad blanket ratifications of an oil and
EDUCATION J.D., St. Mary’s University School of Law B.A., University of Notre Dame BAR ADMISSIONS Texas PRACTICE AREAS Conveyancing and Curative Oil and Gas Leasing Title Matters
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N at i onal A ssociation of D i v i s i on O rder A nalys t s
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