TERMINOLOGY & ACRONYMS
HELPFUL TERMS & DEFINITIONS
Listed below are descriptions of different oil and gas deeds as well as definitions
of estate and probate terminology commonly seen when transferring oil and
gas royalties from estates:
OIL & GAS DEED TERMINOLOGY
JOINT TENANT DEED
Transfers undivided co-ownership to two or more people whereby, upon the death of the first owner, his share automatically transfers in equal shares to the remaining owner(s).
RETAINED LIFE ESTATE DEED
Grantor transfers to the grantee the ownership of the interests, but grantor retains the right to receive revenues generated from oil and gas production and lease bonuses as long as the grantor is alive. Once the grantor dies, the right to receive revenues reverts to the grantee. Commonly used when an owner wants to transfer his oil assets out of his estate but wants to continue to receive the revenues generated from the oil royalties during his lifetime.
MINERAL DEED
Transfers ownership of the royalty interest including the right to execute leases and receive bonus payments.
Transfers undivided co-ownership to two or more people whereby, upon the death of the first owner, his share automatically transfers in equal shares to the remaining owner(s).
RETAINED LIFE ESTATE DEED
Grantor transfers to the grantee the ownership of the interests, but grantor retains the right to receive revenues generated from oil and gas production and lease bonuses as long as the grantor is alive. Once the grantor dies, the right to receive revenues reverts to the grantee. Commonly used when an owner wants to transfer his oil assets out of his estate but wants to continue to receive the revenues generated from the oil royalties during his lifetime.
MINERAL DEED
Transfers ownership of the royalty interest including the right to execute leases and receive bonus payments.
ROYALTY DEED
Transfers ownership of the royalty interest only and not the right to execute leases and receive bonus payments.
QUIT CLAIM DEED
Also called quitclaim deed, quickclaim deed and quick claim deed. Transfers any mineral, royalty or overriding royalty owned with no warranty of title.
FOREIGN WILL
When the decedent owned an asset in one state but the decedent's will was probated in another state (i.e. the decedent owned oil royalties in Texas but his will was probated in Florida).
HEIR
Person receiving assets of an estate under the terms of the will.
HEIRS AT LAW
Persons who would inherit the decedent's estate if the decedent died intestate, or without a will.
INTESTATE ESTATE
An estate to be administered without a will.
INVENTORY
Detailed list of real and personal property in an estate.
LETTERS TESTAMENTARY
A written decree of the court whereby the executor is named.
PERSONAL REPRESENTATIVE
The person named in decedent's will to administer the estate who accepts the appointment by qualifying before the clerk. Also called administrator or executor.
POWER OF ATTORNEY
A document authorizing one person ("agent") to act on behalf of another person ("principal"). Also called "Attorney-in-Fact."
PROBATE
The legal process in which a court oversees the distribution of property left in a will. The procedure whereby a will is admitted of record in the clerk's office, including the process of qualifying a person as an executor of an estate and the process of administering an estate.
TESTATOR
One who dies leaving a will.
TESTATE ESTATE
An estate to be administered pursuant to a will.
WILL
An individual's written declaration of property disposal after death.
Transfers ownership of the royalty interest only and not the right to execute leases and receive bonus payments.
QUIT CLAIM DEED
Also called quitclaim deed, quickclaim deed and quick claim deed. Transfers any mineral, royalty or overriding royalty owned with no warranty of title.
FOREIGN WILL
When the decedent owned an asset in one state but the decedent's will was probated in another state (i.e. the decedent owned oil royalties in Texas but his will was probated in Florida).
HEIR
Person receiving assets of an estate under the terms of the will.
HEIRS AT LAW
Persons who would inherit the decedent's estate if the decedent died intestate, or without a will.
INTESTATE ESTATE
An estate to be administered without a will.
INVENTORY
Detailed list of real and personal property in an estate.
LETTERS TESTAMENTARY
A written decree of the court whereby the executor is named.
PERSONAL REPRESENTATIVE
The person named in decedent's will to administer the estate who accepts the appointment by qualifying before the clerk. Also called administrator or executor.
POWER OF ATTORNEY
A document authorizing one person ("agent") to act on behalf of another person ("principal"). Also called "Attorney-in-Fact."
PROBATE
The legal process in which a court oversees the distribution of property left in a will. The procedure whereby a will is admitted of record in the clerk's office, including the process of qualifying a person as an executor of an estate and the process of administering an estate.
TESTATOR
One who dies leaving a will.
TESTATE ESTATE
An estate to be administered pursuant to a will.
WILL
An individual's written declaration of property disposal after death.
PERSONAL ATTENTION, ETHICAL STANDARDS & PROFESSIONAL SERVICE | 1-800-950-6954
ESTATE AND PROBATE TERMINOLOGY
BOPD | Barrels of Oil Per Day
BOPM | Barrels of Oil Per Month
BWPD | Barrels of Water Per Day
DO | Division Order
DR | Delay Rental
GWI | Gross Working Interest
JOA | Joint Operating Agreement
MCFPD | Thousands of Cubic Feet of Gas Per Day
MI | Mineral Interest
BOPM | Barrels of Oil Per Month
BWPD | Barrels of Water Per Day
DO | Division Order
DR | Delay Rental
GWI | Gross Working Interest
JOA | Joint Operating Agreement
MCFPD | Thousands of Cubic Feet of Gas Per Day
MI | Mineral Interest
COMMON ACRONYMS
NRI | Net Revenue Interest
NWI | Net Working Interest
OGML | Oil, Gas and Mineral Lease
ORRI | Overriding Royalty Interest
RI | Royalty Interest
SI | Shut In
SWDW | Salt Water Disposal Well
WI | Working Interest
NWI | Net Working Interest
OGML | Oil, Gas and Mineral Lease
ORRI | Overriding Royalty Interest
RI | Royalty Interest
SI | Shut In
SWDW | Salt Water Disposal Well
WI | Working Interest
ADMINISTRATOR
The person named in decedent's will to administer the estate who accepts the appointment by qualifying before the clerk. Also called executor, executrix or personal representative.
AFFIDAVIT OF HEIRSHIP
A statement of facts relating to the death and heirship of the decedent which is sworn to before a notary public. Usually executed by someone who knew the decedent but is not an heir to the estate.
ANCILLARY PROBATE
The additional probate required to legally transfer title when the oil royalties are not located in the same state as the decedent. For example, the decedent's estate was probated in New York (the decedent's state of residence) but the oil royalties are located in Oklahoma.
ATTORNEY IN FACT
A document authorizing one person ("agent") to act on behalf of another person ("principal"). Also called "Power of Attorney."
BENEFICIARY
Person receiving assets of an estate under the terms of the will.
CERTIFIED COPY
A copy of a document that is signed and certified as a true copy by the officer to whose custody the original is entrusted.
DECEDENT
Deceased person.
ESTATE
The decedent's property at the time of his death.
EXECUTOR
The person named in decedent's will to administer the estate who accepts the appointment by qualifying before the clerk. Also called executrix, administrator or personal representative.
EXECUTRIX
A female executor. Also called administrator or personal representative.
FIDUCIARY
A person in a position of trust with respect to another's property. A term used to refer to the executor or administrator.
FINAL DECREE
A court ruling detailing the distribution of assets of an estate.
The person named in decedent's will to administer the estate who accepts the appointment by qualifying before the clerk. Also called executor, executrix or personal representative.
AFFIDAVIT OF HEIRSHIP
A statement of facts relating to the death and heirship of the decedent which is sworn to before a notary public. Usually executed by someone who knew the decedent but is not an heir to the estate.
ANCILLARY PROBATE
The additional probate required to legally transfer title when the oil royalties are not located in the same state as the decedent. For example, the decedent's estate was probated in New York (the decedent's state of residence) but the oil royalties are located in Oklahoma.
ATTORNEY IN FACT
A document authorizing one person ("agent") to act on behalf of another person ("principal"). Also called "Power of Attorney."
BENEFICIARY
Person receiving assets of an estate under the terms of the will.
CERTIFIED COPY
A copy of a document that is signed and certified as a true copy by the officer to whose custody the original is entrusted.
DECEDENT
Deceased person.
ESTATE
The decedent's property at the time of his death.
EXECUTOR
The person named in decedent's will to administer the estate who accepts the appointment by qualifying before the clerk. Also called executrix, administrator or personal representative.
EXECUTRIX
A female executor. Also called administrator or personal representative.
FIDUCIARY
A person in a position of trust with respect to another's property. A term used to refer to the executor or administrator.
FINAL DECREE
A court ruling detailing the distribution of assets of an estate.
Legacy Royalties | Toll free: 800-950-6954 | Local: 903-596-9813 | Fax: 903-596-9814 | Mailing: P.O. Box 1360, Tyler, TX 75710-1360
Copyright 2013 Legacy Royalties. All Rights Reserved.