Thursday, June 18, 2020

Mineral Reservations and “Terminological Inexactitude”

Originally published by Charles Sartain.

Co-author Robbie S. Morris

Channeling Winston Churchill, Gray Reed lawyer Robbie Morris urges caution for document writers and the clients who hire them: Drafting a deed is not, as many view it, a clerical undertaking.  Nothing can take the place of a diligent inquiry (by all parties and their counsel) into how the grantor derived the title in which he or she purports to be vested. One example would be a real estate transaction in which a title commitment contains a Schedule A or Schedule B blanket minerals exclusion, or Schedule B lists a severed mineral interest stating that title has not been checked subsequent to date.  This should be a red flag, a warning that a landman should be hired to run mineral title. Guesswork about what is being conveyed is not recommended!

Robbie also discusses he different ways in which mineral and royalty reservations and exclusions should be handled in the deed-drafting exercise. He also explains the distinction between matters affecting the quantity and the quality of the estate being conveyed and drafting nuances involving each.

For Robbie’s report, read on.

A musical interlude about a trashy part of town.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.



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