Court Decision Impacts Oil and Gas Rights in Hughes County
The Oklahoma Court of Civil Appeals has ruled against the Reid Family Management LLC in a dispute over oil and gas rights to a well in Hughes County. At the center of the case was the Darks #1-27 Well, operated by Southern Resources.
The ruling came after a 65-year paperwork oversight. The court determined that the Reid family did not hold a valid claim because they never properly filed documents in Hughes County.
Failure to File Costs Mineral Rights Claim
The dispute began with a quit claim deed dating back to 1960 in both Okmulgee and Hughes counties. However, the family never filed the necessary probate paperwork in Hughes County. District Judge Trisha D. Smith ruled against the family. The Appeals Court upheld her decision, emphasizing the failure to establish “marketable title.”
In its opinion, the Appeals Court stated:
“The Okmulgee County decree was not filed of record in Hughes County where the property in question is located. Without following the requirements in §§ 703 and 711, Plaintiff cannot use the Okmulgee County probate decree…to establish marketable title.”
Legal Arguments and State Law
The Reid family attempted to argue their claim under Oklahoma’s Production Revenue Standards Act and the Oil and Gas Owners’ Lien Act. They contended they owned the 70 acres of mineral rights and that Southern Resources owed them royalties.
But the court made clear that without properly recorded title, no claim could be enforced. The family’s failure to comply with 58 O.S. §§ 703 and 711, which require probate decrees to be filed in the county where the property is located, proved fatal to their case.
The Appeals Court affirmed the lower court’s ruling:
“Because Plaintiff lacks marketable title and has not cured all the defects, it cannot pursue a PRSA claim and/or a statutory lien against Defendant for the recovery of proceeds.”
Broader Implications for Oklahoma Mineral Rights
The decision serves as a reminder for families and landowners across Oklahoma who inherit property with potential oil and gas rights. Failure to properly record documents in the correct county can erase claims, even decades later.
Oklahoma oil and gas law requires strict compliance with recording statutes to protect both operators and landowners. Legal experts say the ruling underscores the importance of keeping probate and title records updated and filed where the property is located.
The case, Reid Family Management, LLC vs. Southern Resources, Inc. (Case No. 122,872), now stands as a precedent that emphasizes the need for diligence in title documentation for mineral rights.
The case in question is: REID FAMILY MANAGEMENT, LLC, Plaintiff/Appellant, )
vs Case No. 122,872 VS. SOUTHERN RESOURCES, INC., )
Defendant/Appellee. ) APPEAL FROM THE DISTRICT COURT OF HUGHES COUNTY, OKLAHОМА
HONORABLE TRISHA D. SMITH, TRIAL JUDGE
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