Requirement 14.002 – Ambiguity Caused By Intention Clause

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Requirement 14.002 – Ambiguity Caused By Intention Clause

 

 Ambiguous Intention Clause: By mineral deed dated April 15 2006, and recorded in Deed Book 254, page 16,  John Blair and Molly Blair, his wife, conveyed an undivided one fourth (¼)  interest in the mineral estate underlying  Tract 1, to  William Blazeby.  In addition to the grant of the undivided fractional interest, the deed also contained a statement that the grantors intended to convey  forty (40)  mineral acres in the land covered by the deed.  If  Tract 1 does not contain exactly 160 acres, the grant of the undivided fractional interest would conflict with the stated intentions of  the Blairs to grant  forty mineral acres to Blazeby. Thus, there is a possibility that the deed from  Blairs to  Blazeby is ambiguous.

 

 John Blair held the entire mineral estate in Tract 1 prior to executing and delivering the deed to William Blazeby.  You have obtained oil, gas, and mineral leases from John Blair, Molly Blair, and William Blazeby.  Consequently, the potential ambiguity in the deed to Blazeby will not affect your rights to drill and produce oil and gas from Tract 1 so long as those leases are in force.

 

 In preparing the table setting out the ownership of the mineral estate in  Tract 1, we assumed that the deed from  John Blair and Molly Blair to William Blazeby covered an undivided  one fourth (¼)  mineral interest in  Tract 1, regardless of the actual number of acres contained in Tract 1.  Your

 

 Requirement:  If you complete a producing well on Tract 1 or a drilling and production unit including Tract 1, you should:

 

(1)Obtain an accurate survey of Tract 1.

 

(2)If the survey shows that Tract 1 does not contain exactly 160 acres, obtain a correction deed that eliminates the ambiguity discussed above or suspend payment on the affected interest and deposit all proceeds from the sale of production attributable to that interest into the registry of a court of competent jurisdiction and interplead the claims of John Blair and Molly Blair  to  William Blazeby to the deposited monies.

Copyright 2011 by Edward G, Hawkins. All rights reserved.