The problem was that looking at the surface did not give a great picture about what was going on below the surface. All kinds of exploration methods were tried with varying degrees of luck.
The explorationists were not having a great deal of luck, and whatever scientific method was being tried yielded no results that were better than guesswork, although that did not fail all the time.
Along came World War I. Somebody figured out that if the vibrations in the earth were recorded from two sites, then one could work out where the guns were firing from with some accuracy, and counter-battery fire could be brought in, and the enemy gun stood a good chance of being blown away. John Karcher, a graduate of University of Oklahoma, was one physicist that was involved in that research.
Once the guns stopped firing, Karcher did some thinking, and applied for patents in reflection seismology, and in 1921, the first seismic cross section was created across the Arbuckle mountains in Oklahoma. Then, in 1928, the first well in history was drilled near Seminole, Oklahoma, resulting in commercial production.
Karcher did many other things in the industry, among them partnering up with Everette Lee DeGolyer (a rather well-known name), and founding Geophysical Services, Inc. (GSI), which was eventually acquired by Texas Instruments. As the reader probably knows, what has occurred since then in the seismic industry has revolutionized exploration for hydrocarbons.
In 1964, I signed on with GSI to do work in central Oklahoma. I was what is now known as a jug-hustler– the guy that carries geophones and plants them in the earth with a stomp from a boot, and later worked in the head office in Dallas, trying to make some sense out of squiggly lines. I never contributed much to the seismic industry, except to discover that I did not have an affinity for outdoors Oklahoma in the summer, and undoubtedly made my superiors at GSI happy with my decision. Let me know if any topic in the history of the oil business may interest you. Theodore R. Borrego done nearly 50 years in this industry, and I’d point you to my website, www.explorationlaw.com to know more.
]]>Is a conveyance by or from the “Estate of Joe Jones” or the “Number One Family Trust” a valid conveyance?
The brief answer is resoundingly probably not. In Miller v. Estate of John C. Self, 2003 Tex. App. LEXIS 6302 (2003), the Texarkana Court of Appeals considered a lawsuit brought by one Sandra Miller against the “Estate of John C. Self.” The court upheld a lower court’s dismissal of the action, and reminded the chagrined counsel that “[i]t has long been settled that the “estate” of a decedent is not a legal entity and may not sue or be sued as such.” It follows, therefore, that ‘[a] suit seeking to establish the liability of an estate should be filed against the personal representative or, in certain circumstances, the heirs or beneficiaries.”
Fred Lange, who wrote the definitive work on Texas Land Titles, maintains that
The accepted rule is that, in order for an instrument to be operative as deed conveying title to, or interest, or estate inland, the grantee named in the deed must be a person, natural or artificial, in existence at the time of the conveyance … . Fred A. Lange and A.A. Leopold, 4 Texas Practice, Land Titles and Title Examination, 2d ed. §644.
Some cases hold that a conveyance to an Estate will operate to vest title in the heirs (see, e.g., Haile v. Holtzclaw, 414 S.W. 2d 916 (Tex. 1967) and the cases cited in that opinion), but there is a significant problem raised when that happens. For example, what happens if the heirs are not ascertainable until after a probate proceeding (or worse, a lawsuit) has settled the issue?
The same considerations apply to trusts, which are not, strictly speaking “legal entities,” nor have they ever been during the last few hundred years. Mr. Lange expounded on that matter as well:
[T]he legal title and right to possession of land must be vested in a trustee. [citations] Lange, §338.
Under the Texas Property Code, the name of the Trust need not be disclosed, so a conveyance into Joe Jones, Trustee, will pass title; a conveyance into the Family Trust Number 17 is not.
Hence, if you receive a lease, an agreement or some other instrument which affects rights in oil and gas, and which is to be executed by an Estate or a Trust, without reference to the Executor, Administrator, Personal Representative or Trustee, you may be well on the way to creating a legal problem and a cloud on title.
]]>Clients occasionally find themselves in need of advice regarding the management and supervision of litigation or the settlement of litigation. Ted has advised clients, both as plaintiff and as defendant representative, and as assistant counsel in mediation and arbitration proceedings.
On behalf of companies seeking to employ senior management or other personnel, or on behalf of individuals entering into employment or consulting arrangements, Ted has advised clients regarding the drafting, reviewing, and negotiating of employment and consulting agreements.
]]>Since 2002, Ted has been involved in wind projects, principally on the side of the landowners, although he has consulted with wind companies on several occasions. Solar power is relatively new, and his involvement with solar power, from the landowner standpoint, has been more recent, beginning in 2018.
While it is not of much consequence in Texas, Ted has also provided aid and assistance to clients involved with geothermal projects, principally in California and in Alaska. Geothermal resources have not received a great deal of interest in Texas, and, more than likely, will not soon. Once again, however, the typical geothermal lease is based upon oil and gas leases.
An outmoded, and probably not a source of alternative energy, is lignite, also known as “brown coal.” In the late 1970’s, due to the Arab oil embargo, using lignite for power plant fuel sources was being explored and Ted represented companies leasing property for lignite extraction. That source of energy is probably not a viable alternative energy source for the future.
Anthracite, or hard coal, which is still in use, is another area in which Ted has assisted clients, principally in Wyoming, Kentucky, and Tennessee. There are not commercially viable sources of anthracite coal in Texas.
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