intestate texas land - Posted by Alan Kurlansky

Posted by Alan Kurlansky on August 29, 2011 at 15:44:27:

I’m involved with intestate Texas land that may have oil/gas. There are a dozen heirs. What are the ways to straighten out the land with the heirs and also form a structure that would manage the land, decision making, income(royalties, etc.) for all the heirs and their future descendants?

Re: intestate texas land - Posted by ray@lcorn

Posted by ray@lcorn on September 02, 2011 at 11:23:15:

Alan,

I have no experience dealing with oil-gas deals. I’d sent this post to a good friend in TX who has years of experience in mineral leases, but it seems he is off the grid until later this month.

I do have experience dealing with heirs. Short version, the more there are the longer it takes. Land deals have a way of bringing latent family issues to the surface, so expect delays while they use the deal as a battleground to settle old grudges.

Don’t even start the conversation without a lawyer’s counsel, preferably one who might know some of the heirs you’re dealing with. Extra ideal would be one who also has mineral lease experience.

The entity structure will evolve from the interlocking dynamics of the oil/gas economics and the family issues. You might spend some time with the lawyer fleshing out the boiler-plate sections of an LLC Op Agreement, but the real (i.e. $$$) issues will have to be negotiated before the agreement is finalized.

ray

Re: intestate texas land - Posted by Alan Kurlansky

Posted by Alan Kurlansky on September 02, 2011 at 13:12:39:

Thanks, Ray. I would like to hear what your friend might add to the conversation. I’m already expecting what you’re saying when we get to that point. I know we’ll need a lawyer to help with all this, but we’re trying to do as much as we can in order to keep legal fees in check. Getting an example of an LLC Op agreement for this situation would be awesome.