RANCHING Business
base in Texas is Drillinginfo. Records may be purchased at
www.drillinginfo.com.
What is the perfect fi ling system? The one you will use. While some mineral owners may employ
an oil and gas record-keeping service, most prefer to save money by developing their own system. The perfect fi ling system is one a person will actually use. Wallace has developed an organizational
method that has endured the test of time. It is simple, yet effective. He recommends that royalty owners buy a legal-size, 6-part clas- sifi ed folder for each mineral property. Many of them are expandable up to 4 inches and they are available at most offi ce-supply stores. On page 1, Wallace fi les maps of the leased
area along with oil and gas lease maps. He says it orients people to the area. For clarifi cation, he also colors the leased acreage and notes the ownership percentage. On page 2, across from the maps, Wallace adds source documents and the oil and gas lease. Surface agreements go on page 3. These documents
Arm yourself with a 6-part legal-size fi le folder and a 2-hole punch to keep oil and gas royalty fi les organized and easy to use.
into a category. Wallace attaches them to his miscel- laneous fi le on page 5 and adds check stubs on page 6. “If I have a client who keeps good records [using the
enable the surface owner to know where the oil and gas operator plans to locate equipment and roads. There may be surface damages from drilled wells. Include the surface damage release and a copy of the check, which indicates payment for damages. Page 4 is a good place to fi le correspondence. Make
notes of the operator and landman’s contact informa- tion, such as phone numbers, email and snail-mail ad- dresses, for future reference. Wallace says that although these letters and emails are not defi ning documents, the owner will be able to read the correspondence to refresh his memory of previous oral and written com- munications. Sometimes there are orphan papers that don’t fi t
6-part folder system], I have a very good understand- ing of what is going on,” Wallace explains. “I can look through things and determine what has occurred, from the paperwork between him and the oil company.” These 6-part folders come in colors, so a producing
property may be fi led in a green folder, and an unleased parcel may be fi led in brown. Inactive properties are either not leased, or are not leased because there is no exploration or mineral production in the area. Many royalty owners utilize information in these fi les to locate oil producers who are interested in leasing the property. If there is no development in an area, there may be in the future. An up-to-date fi le with pertinent information will benefi t the royalty owner as he dis- cusses terms with the landman. Those who are computer savvy can transform this
60 The Cattleman January 2016
thecattlemanmagazine.com
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