nalta news€¦ · 08 letter from the president, kayla hale, cplta 09 letter from the past...

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National Association of Lease and Title Analysts Publicationwww.nalta.org

NALTAQuarter ending March 2019 NewsNews

NALTA News | Quarter ending March 2019

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INVOICES


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TABLE OF CONTENTS

36 “A Brief History of New Mexico Community Property Conveyancing” By: Allen G. Harvey, Esq.

40 “Creative Approaches to Offshore A&D Transactions with a Focus on Security and Performance Guarantees” By: Paul J. Goodwine, Esq. and Samantha E. Marrone, Esq.

44 “A Lesson in Property Stipu-lations” By: Charles Sartain, Chance Decker and Ethan Wood

46 “Escheat of Abandoned/Un-claimed Mineral Proceeds in Texas” By: Terry E. Hogwood, Esq.

50 “NALTA Conference 2018” By: Amy Rhame

OFFICIAL PUBLICATION OF THE NATIONAL ASSOCIATION OF LEASE AND TITLE ANALYSTS

IN THIS ISSUE:FEATURED ARTICLES:

VOLUME 35, ISSUE 1

National Association of Leaseand Title Analysts4747 Research Forest Drive,Suite 180-221The Woodlands, TX 77381www.NALTA.org

ADVERTISING DIRECTORY:B.J. Kardrmas, Inc. ............................................................................................. 03Ensley Properties, Inc. ....................................................................................... 58iLandman............................................................................................................ 03Oil Patch Press .................................................................................................... 14Steptoe & Johnson, PLLC ................................................................................... 35TexasFile ............................................................................................................. 02

06 2018/2019 NALTA Officers and Directors

08 Letter from the President, Kayla Hale, CPLTA

09 Letter from the Past President/Board Advisor, Nicholas Nelson, CPLTA

10 Letter from the 1st Vice President, Erica Honeycutt, CPLTA, CDOA

11 NALTA Board Report, Liz Bicoy, CPLTA

12 Membership Report, Mandy Cookson, CPLTA

13 CPLTA Certification Report, Lori Fisher, CPLTA

14 Website Technology Report, Tonya Fraley, CPLTA, CPL

14 Treasurer’s Report, Cindy Nuffer, CPLTA,

17 Site Selection Report, Olga McGee

18 Westminster, CO Conference Brochure

52 1st Quarter 2019 NALTA Local Chapter Spotlights(ALTA, AT-LARGE, and ETX-ALTA)

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Table of Contents

I hope these early months of 2019 are treating each of you well. I have learned a lot after publishing the first issue. I’m continuing to refine the process and make the compilation of the magazine more effi-cient. I would love to hear from you if you have any suggestions for making our upcoming issues even better or if you want to submit an article for consid-eration in a future publication!

With our 2019 NALTA Conference being a month ear-lier than in the past, we decided to push out the publication date of this issue to ensure we provided each of our members with a detailed look into what the 2019 conference committee has planned. This issue contains this year’s conference brochure that begins on page 18. This is sure to be a con-ference you won’t want to miss!

I’d again like to thank the NALTA News committee for their assistance and support. I would also like to thank Veronica for her coaching, quick turn-around time, and great ideas. This publication couldn’t be what it is today without the many individuals that volunteer their time to making it such a success. Again, if you have any suggestions, concerns, or if you would like to serve on the NALTA News Committee in any capacity, please do not hesitate to reach out to me directly at the e-mail listed below.

Yours respectfully,Rheannon Coleman, CPLTA

NALTA 2nd Vice PresidentNALTA News Editor

E-mail: [email protected]

LETTER FROM THE EDITOR:

2018/2019 NALTANEWS COMMITTEE:EDITOR:Rheannon H. Coleman, CPLTARepsol Oil & Gas USA, [email protected] CHAIR:Ashley Mosby, CPLTACOPY EDITOR:Jeanette Rivas, CPLTAASSISTANT EDITORS:Mandy Cookson, CPLTA,Michelle Teppo, CPLTA,Marissa Crow, CPLTA, CPLTA, Kelley Newkirk Konarik, CPLTA,Ashley Mosby, CPLTA andCindi Hodges, CPLTAGRAPHIC DESIGNER:Veronica Uvarov, Vongue Arthttp://vongueart.comThis quarter’s cover photo wasgraciously provided by Repsol.

For information concerning advertising in NALTA News please contact Ashley Mosby, CPLTA at [email protected].

EDITORIAL DISCLAIMER: The contents of this publication are intended for member use only and any other use without permission from the NALTA Board of Directors is strictly prohibited. Articles published may not necessarily reflect the opinions of NALTA, nor does NALTA warrant liability for misprints.


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2018-2019 NALTA OFFICERS AND DIRECTORSPRESIDENTKayla L. Hale, CPLTA432-686-3028COG Operating LLC600 W. Illinois AveMidland, TX [email protected]

FIRST VICE PRESIDENTErica Honeycutt, CPLTA, CDOA303-534-9513Tracker Resource Development III, LLC1050 17th Street, Suite 2200Denver, CO [email protected]

SECOND VICE PRESIDENTRheannon Coleman, CPLTA724-814-5347Repsol Oil & Gas USA LLC50 Pennwood PlaceWarrendale, PA [email protected]

RECORDING SECRETARYLiz Bicoy, CPLTA405-476-4472Ascent Resources, LLCPO Box 14818Oklahoma City, OK [email protected]

CORRESPONDING SECRETARYMandy Cookson, CPLTA405-971-4022RKI Energy Resources LLC210 Park Ave, Suite 900Oklahoma City, OK [email protected]

TREASURERCindy Nuffer, CPLTA, CMM214-522-9131Providence Energy Operators, LLC16400 North Dallas Parkway,Suite 400, Dallas, TX [email protected]

CERTIFICATION DIRECTORLori Fisher, CPLTA713-458-0470Percheron, LLC1904 W Grand Parkway N,Suite 200Katy, TX [email protected]

WEBSITE TECHNOLOGY DIRECTORTonya Fraley, CPLTA, CPL918-779-6606Bank of Oklahoma2 West Second Street,Suite 1300Tulsa, OK [email protected]

PAST PRESIDENT/BOARD ADVISORNicholas (Nick) J. Nelson, CPLTA214-880-7141Petro-Hunt, LLC2101 Cedar Springs Road,Suite 600Dallas, TX [email protected]

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2018/2019 NALTA Officers and Directors

ALTA (HOUSTON)Robyn Arnold, CPLTA832-624-5699Exxon Mobil CorporationPO BOX 4610Houston, TX [email protected]

AT-LARGEPriscilla J. Parsons, CPLTA361-553-9000Coastal Plains Exploration LLC323 Alcoa DrivePort Lavaca, TX [email protected]

ATX-ALTA (AUSTIN)Allison Kidwell817-808-4633ATX Energy, LLC6504 Bridge Point Parkway, Suite 500Austin, TX [email protected]

DALTA (DENVER)Kelsey Peoples720-876-3326Encana Services Company Ltd370 17th Street, Suite 1700Denver, CO [email protected]

DFW-ALTA (DALLAS-FT WORTH)Connie Wilcoxson RPL, CPLTA, CDOA214-217-6235Dorchester Minerals Operating, LP3838 Oak Lawn Avenue, Suite 300Dallas, TX [email protected]

ETX-ALTA (TYLER)Wendy Morgan903-597-7667Tanos Exploration II LLC821 E. Southeast Loop 323, Suite 400Tyler, TX [email protected]

GABALTA (GREATER APPALACHIAN BASIN)Michelle Teppo, CPLTA304-230-2345Steptoe & Johnson PLLCPO Box 751Wheeling, WV [email protected]

OCAPLTA (OKLAHOMA CITY)Scott Davis405-228-8418Devon Energy333 West Sheridan AveOklahoma City, OK [email protected]

PALTA (MIDLAND)Ashleigh Barden432-818-2216COG Operating LLC600 W Illinois AveMidland, TX [email protected]

SALTA (SOUTHWEST)Heidi Hill505-320-9576Merrion Oil & Gas Corp610 Reilly Ave.Farmington, NM [email protected]

TALTA (TULSA)Angela Marshall918-748-3346Mid-Con Energy2431 E. 61st Street,Suite 850Tulsa, OK [email protected]

SITE SELECTION COMMITTEEOlga McGee, CPLTA (Chair)[email protected]

Sarah Werner, RPL, [email protected]

Linda Howerton, [email protected]

Tonya Fraley, CPLTA, [email protected]

Nicholas (Nick) J. Nelson, [email protected]

PUBLIC RELATIONS COMMITTEEKayla Hale, CPLTA (Chair)[email protected]

FINANCIAL COMMITTEECindy Nuffer, CPLTA, CMM (Chair)[email protected]

SCHOLARSHIP COMMITTEEAshleigh Barden (Chair)[email protected]

Kristie [email protected]

ETHICS COMMITTEEOlga McGee (Chair)[email protected]

PHOTOGRAPHY CHAIRConnie Elliott, [email protected]

EXPANSION CHAIRLori Fisher, [email protected]

PARLIAMENTARIAN/HOTEL CHAIRAmy Hopmann, [email protected]

CHAPTER LIAISONS/DIRECTORS STANDING AND WORKING COMMITTEES


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LETTER FROM THE PRESIDENT

Dear NALTA Members,

I can’t believe how quickly this year is going by! Plans for the 34th Annual NALTA Conference are well under way with Erica Honeycutt and her committee working endlessly to ensure the 2019 conference in Westminster, Colorado is a success. I would like to encourage each of you to help pro-mote NALTA and our conference to your company, peers and vendors. It’s our members we can thank for helping us spread the word, as the NALTA board continues to maintain the quality and standard ex-pected of our conference each year.

The January board meeting was a success as we set our budget for the year and worked together on NAL-TA business. The board voted to provide a two-day conference registration grant to each of our chap-ters, as well as our CPLTA program and our non-af-filiated members. I encourage you to watch for the upcoming eblasts from your local chapters or from NALTA regarding when the grants will be given away.

I am very excited to announce effective February 19, 2019, Austin Texas Association of Lease and Ti-tle Analysts (ATX-ALTA) was approved by the NALTA Board of Directors to be affiliated with NALTA and

become an official chapter. I am so grateful to Lori Fisher who spent the past year as the NALTA Ex-pansion Chair and helped the ATX-ALTA board get established. Also, a huge thank you to those board members of ATX-ALTA for all their hard work and dedication starting this chapter. I am excited to see the great things this chapter will do.

As the 2018/2019 NALTA President, one of the op-portunities I have is to visit our local chapters. I have already visited ATX-ALTA and ALTA in February and loved getting to meet the members and talk with them a little about NALTA and conference. I have plans to visit PALTA for their April 11th lun-cheon, GABALTA for their seminar on April 24th and SALTA for their half day seminar on May 2nd. I am making plans to visit the other chapters and look forward to meeting everyone!

It is such an honor to serve as your NALTA Presi-dent. Please feel free to reach out to me with any questions or concerns and I’ll be glad to help.

Respectfully submitted,Kayla L. Hale, CPLTA

2018-2019 NALTA President

Kayla L. Hale, CPLTA

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NALTA Board Reports

LETTER FROM THE PAST PRESIDENT/BOARD ADVISOR

Dear NALTA Members,

I am happy to announce the following deadlines for the election of the 2019 - 2020 NALTA Board of Directors. If you would like to run for one of the following board positions, your nomination must be submitted to a current board member for official nomination.

Please see the NALTA By-Laws for qualifications and the job description for each of the available positions. It is important to note that the Past President/Board Advisor and all local chapter liaisons are non-elected positions.

Please submit your nomination (including nominee’s bio and photo) by June 6th to: [email protected].

If you have any questions, please feel free to contact me directly.

2018 – 2019 NALTA Election Committee

Committee Chair – Nicholas J. Nelson, CPLTACommittee Member – Amy Hopmann, CPLTACommittee Member – Sharon Tucker

Respectfully submitted,Nicholas J. Nelson, CPLTA

2018 - 2019 NALTA Past President/Board Advisor

POSITIONS

PRESIDENT

1ST VICE PRESIDENT

2ND VICE PRESIDENT

CORRESPONDING SECRETARY

RECORDING SECRETARY

TREASURER

CERTIFICATION DIRECTOR

WEBSITE TECHNOLOGY DIRECTOR

AT-LARGE DIRECTOR

DEADLINESNominations due – June 6th

Election open – July 1st

Election Close – August 2nd

Election results provided to the NALTA President – August 9th

Election results announced to the membership on or around August 14th

Nicholas J. Nelson, CPLTA


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LETTER FROM THE 1ST VICE PRESIDENT

Dear NALTA Members, Friends and Conference Attendees,

The 2019 NALTA Conference registration is now open! The NALTA Conference Committee and the NALTA Board of Directors would like to extend a formal invitation for you to join us in Westminster, Colorado, August 28-30, 2019. We have planned three full days of premier education and network-ing. This is an event you do not want to miss! Full conference details can be found on our website. Here are a few of the conference highlights:

• This year’s Wednesday Seminar is focused on marketable title and will cover conveyances, runsheet preparation, title examination stan-dards, title opinions and curative measures.

• We have partnered with 24 of the industry’s best speakers/instructors and will be offering 32 different breakout sessions on Thursday and Friday.

• Our keynote speakers Monte Williams and Ter-rill Williams will deliver engaging and informa-tive presentations during our general sessions.

• We are planning two networking and entertain-ment evening events that won’t disappoint! Put on your party hats and get ready for some fun.

• Limited discounted hotel room rates of $149/night have been negotiated at the Westin Westminster.

• Continuing education certification credits will be offered for NALTA, NADOA, AAPL and more!

Who should attend this event? The NALTA Annual Conference is specifically crafted for land and title

professionals. This group includes: Lease/Division Order/Title/Land/GIS Analysts, Administrators, Technicians, Landmen, Attorneys, Managers, and anyone else interested in networking and learn-ing more about current oil and gas title, leases, contracts, and technology. If you need assistance requesting approval to attend conference, we have included a conference justification toolkit on our website.

We are currently seeking sponsors and donations for this event. We are accepting monetary dona-tions, door prizes and attendee conference bag giveaways. Visit the sponsor section of the confer-ence website for additional information.

I am looking forward to seeing many of you at con-ference later this year!

With appreciation,Erica Honeycutt, CPLTA, CDOA

NALTA 1st Vice President / Conference Coordinator

Erica Honeycutt, CPLTA, CDOA

“Growth is never by mere chance; it is the result of forces working together.”

~ James Cash Penney

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NALTA Board Reports

NALTA BOARD REPORTGreetings! I am excited and honored to be serv-ing again as the Recording Secretary. Thank you for your confidence in me to serve NALTA. Once again, we have a great NALTA Board and I’m sure the conference in Denver will be great!

The NALTA Board met on January 11th and 12th at the Skirvin Hotel in Oklahoma City.

Our Parliamentarian, Amy Hopmann, went over the protocol for the board meeting to inform our new members and refresh our returning mem-bers.

Kayla Hale presented a recap of the 2018 confer-ence which was held in Orlando, Florida. Erica Honeycutt gave her report for the 2019 conference which will be held in Westminster, Colorado. The conference committees are hard at work to make sure things run smoothly. It will be a great confer-ence and I’m excited to visit Colorado!

The financials for September through December

2018 were reviewed. The 2019 budget was set and approved.

The membership report was presented. As of 1/2/2019, we had 514 members.

The chapter liaisons each presented their reports which outlined the events and news regarding their chapters.

Our next board meeting will be June 7th and 8th in Westminster, Colorado. We will have a chance to tour the hotel in preparation for conference.

After the Friday session in Oklahoma City, the OCAPLTA Board of Directors graciously hosted a happy hour at Fassler Hall in Oklahoma City. Even though the weather was cold and rainy, we had a good time networking and meeting new people.

Respectfully submitted,Liz Bicoy, CPLTA

2018/2019 NALTA Recording Secretary

Liz Bicoy, CPLTA


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MEMBERSHIP REPORTThe NALTA Membership drive is coming to a close but don’t let that stop you from joining or renewing your membership with the organization. We accept memberships throughout the year at https://nalta.org/members/join/. Members receive a magnitude of benefits. The benefits include receiving a dis-count to our highly anticipated conference being held in Westminster, Colorado, receiving issues of the NALTA News and access to the membership di-rectory, salary surveys, job postings, and receiving notification of other educational opportunities. In addition to those benefits, as a member you also have the opportunity to network with some of the best and brightest individuals in our industry.

For those members who have already joined or renewed, I would like to thank you for your mem-bership. We recently made some updates to the website. As with any update, we had a couple of glitches we had to work through to make things run smoothly. For those members that had problems, I would like to thank you again for your patience and positive attitude while we worked through the issues. It gave me an opportunity to converse with some of our members and I can assure you it was my pleasure to help work through the issues and get your membership updated.

I am pleased to report as of March 15, 2019, we have a total of 795 paid members and we are awaiting payment for another 143 potential members. It has taken us a little longer to post the payments since we no longer have a board member that can easily ac-cess our post office box. As of March 15, 2019, we are current on posting payments received by the organi-zation. If you mailed a payment within the last 30-45 days and your account has not been properly cred-ited, please let me know and I will look into it ASAP.

Serving this year has been one way to give back to a wonderful organization that has helped me advance

Mandy Cookson, CPLTA

Active members by chapter that have renewed and paid for their memberships through March 15, 2019.*

*Please note that some NALTA members belong to more than one local chapter.

MEMBERS BY CHAPTER

ALTA 162AT-LARGE 50ATX-ALTA UndeterminedDALTA 95DFW-ALTA 115ETX-ALTA 1GABALTA 78NON-AFFILIATED 78OCAPLTA 110PALTA 39SALTA 11

TALTA 56

TOTAL *795

my career in the energy industry. The educational and networking opportunities along with the other benefits offered through NALTA have given me the knowledge and contacts to help create processes and procedures within my company. I feel very for-tunate to be a part of such an outstanding organi-zation. If you have any questions or need help with membership issues, please feel free to contact me at mcookson@rkienergy.

Respectfully Submitted,Mandy Cookson, CPLTA

2019 Corresponding Secretary

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NALTA Board Reports

CERTIFICATION CORNER

Voluntary Certification Director and Liaisons1

Lori Fisher, CPLTACertification Director

Connie Wilcoxson, RPL, CPLTA, CDOARecertification Chairman

Paula White, CPLTAALTA Certification Liaison

Sharon Tucker, CPLTAAT-LARGE Certification Liaison

Alba Marsden, CPLTADALTA Certification Liaison

Tami Foladare, CPLTADFW-ALTA Certification Liaison

Sarah Burge, CPLTAGABALTA Certification Liaison

Tami Caldwell, CPLTAOCAPLTA Certification Liaison

Melissa Calley, CPLTAPALTA Certification Liaison

Trudy Pingree, CPLTA, CDOASALTA Certification Liaison

Becky Norman, CPLTATALTA Certification Liaison

1 Contact information is available on the NALTA website.

The Certification Committee met in Oklahoma City in January. We added several new members to the committee. This meeting resulted in the new Ethics requirement for the CPLTA program. Effective January 2019, all CPLTA’s must now have two approved Ethics credits within their five-year certification period, as it relates to the CPLTA Pro-gram. Each Ethics course will be awarded one core point and will count towards the 50 points you will need to recertify. If you attended an Eth-ics course during your current certification term and received a noncore point in the CPLTA portal, please email the Certification Director with the date you attended the course. Your point will be converted to a core CPLTA point and will count to-wards the requirement. For those who will recer-tify at the end of 2019, you will NOT be required to have these classes to recertify but they are highly encouraged. A webinar will be made available as one of those credits later in 2019.

It’s that time of year again! The NALTA Conference is just around the corner. If you haven’t registered, please consider signing up for this year’s confer-ence in Westminster, Colorado. CPLTA’s can earn a generous amount of credits for attending the conference. While you are there, stop by and visit us at the CPLTA booth. We are looking forward to sharing information about the certification pro-gram with you. I hope to see you there!

CPLTA reminders:• Points must be submitted within 6 months of

attending an event to receive credit.

• You must be a NALTA member in good standing to maintain your CPLTA certification.

• Your local chapter liaison can assist you with any questions you have regarding obtaining certification or maintaining your certification.

Lori Fisher, CPLTA


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Congratulations to the following CPLTAs who recertified in 2018:Robyn Arnold Lisa M. Ballard Lorraine Blanchard

Marsha Breazeale Debra A. Churchill Marilyn K. Clegg

Crystal Shauntell Clemmer Richard T. Davis Scott Davis

Paula Pluta Daviss Becky DeHart Jeanne DelVecchio-Butler

Karen G. Dindy Kristi L. Drexler Yvonne Durham

Eric B. Durst Robin Fountain Mary Louise Gierisch

Deborah Gordon Sandy Lynn Griffin Lauren Hamm

Adam C. Hatch Jenny Hess Sally Hoch

Marta Hodge Amy R. Hopmann Erin Howard

Ashley Hummel Debra Jameson Janet Johanson

Claire Kilgore Kelly King Cynthia Lancaster

Leslie E. Lanier Jennifer Lockwood Cassandra R. Lookup

Danielle Lybarger Kathleen Mays Myles M. McFarland

Aaron McLean Kathryn A. Neeper William A. Parsons

Terra Lyn Peterson Brittany Poe Lindsey Provost

Tammy Ramer Jennifer Redinger Cheryl Reese

Patricia L. Richardson Dawn Server Candace Smith

Amanda Stone Amy Stubblefield Sue E. Taylor

Brandon Welch Amy Whitacre Patty L. Whitmire

Tamara Williams Amanda Worden

The following candidates have been affirmed for retirement of their CPLTA:Ann M. Coles

Lynette Johnson

Terrie Maroney

Sherri Reid

Michael Smith

Winifred Suarez

Rhonda Vardeman

Marian Wimsatt

Congratulations on your retirement!

Respectfully Submitted,Lori Fisher, CPLTA

Certification Director

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NALTA Board Reports

WEBSITE TECHNOLOGY REPORTThank you to my 2019 Website Technology Team: Jeanette Rivas, Charles Blocker, Erica Honeycutt, Kelley Newkirk Konarik, Nicholas Nelson and Pris-cilla Parsons. We have been busy preparing for the 2019 NALTA Conference in Westminster, Colorado. In addition to setting up conference webpages and registration, we have also been working on devel-oping a conference attendee phone app that we are excited to share. This app will allow you to easily track what classes and events you plan to attend, check room assignments and floor plans for class locations, view speaker biographies, class materi-als and much more! We think this app will make it simple for you to navigate and get the most from your conference experience!

Updates for our other ongoing website technolo-gy projects:

1.CPLTA Website Integration

In the December 2018 NALTA News, we announced that we were developing a new CPLTA platform that will be integrated into the existing NALTA website. Unfortunately, this project is taking longer than anticipated. During the initial testing phase, we discovered several issues we felt needed to be ad-dressed and corrected before rolling out the new system. Keep watching for e-mails that will be an-nouncing important dates and training opportuni-ties available for the new platform.

2.Digital Delivery of the CPLTA Review Manual

Effective as of February 2019, the CPLTA manual is now being distributed in a completely digital format. This greatly reduces the time it takes for us to get manual orders processed and delivered to you. So far, we have heard lots of positive feed-back about this change. It is important to note that by purchasing a digital copy of the manual you are agreeing that you will not share or copy the material provided. Each purchase is meant for a single user only and the file that is downloaded will have the purchaser’s name, e-mail and trans-action id stamped on each page. For more infor-mation please visit the Certification page of the NALTA website.

Don’t forget to update your NALTA profile with your current e-mail address. If you have changed companies, have been locked out of your account or are having any other technical issues, please don’t hesitate to reach out to the website tech-nology team at [email protected].

Thank you,Tonya Fraley, CPLTA, CPL

2018/2019 NALTA Website Technology Director

Tonya Fraley, CPLTA, CPL

TREASURER’S REPORT

Respectfully Submitted,Cindy Nuffer, CPLTA, CMM

2018/2019Treasurer

Cindy Nuffer, CPLTA, CMM

Summary of Accounts as of December 31, 2018

Bank of America Checking Account Balance: $ 61,212.84

Bank of America Conference Checking Account Balance: $258,873.46

Bank of America Savings Account Balance: $ 33,271.38

Total NALTA Assets as of 12/31/2018: $353,357.68


16

NALTA Profit & Loss Budget vs. Actual January through August 2018

Jan - Dec 18 Budget $ Over Budget % of BudgetOrdinary Income/Expense

IncomeCertification Program Income

App Fee 5,009.25Exam 1,980.00Manuals 14,790.13Misc 13.77Re-cert Fee 2,629.00Certification Program Income - Other 0.00 15,000.00 -15,000.00 0.0%

Total Certification Program Income 24,422.15 15,000.00 9,422.15 162.81%Conference

Donations 25,485.00Exhibitor Fee 7,729.29Miscellaneous 1,245.52Registration 172,918.23Conference - Other 0.00 203,300.00 -203,300.00 0.0%

Total Conference 207,378.04 203,300.00 4,078.04 102.01%Membership 91,943.85 72,500.00 19,443.85 126.82%NALTA storage

NALTA Storage 704.00Total NALTA storage 704.00News Magazine Income 5,961.67 7,500.00 -1,538.33 79.49%Website 1,000.00Website Advertising 922.15 2,000.00 -1,077.85 46.11%

Total Income 332,331.86 300,300.00 32,031.86 110.67%Gross Profit 332,331.86 300,300.00 32,031.86 110.67%

ExpenseAt-Large Membership 1,116.89 1,800.00 -683.11 62.05%Board Expenses

Airfare 5,031.24Hotel 3,515.23Meals 3,121.98Misc Expenses 784.95Board Expenses - Other 0.00 35,000.00 -35,000.00 0.0%

Total Board Expenses 12,453.40 35,000.00 -22,546.60 35.58%Certification Program Expense

Airfare 1,416.46Food 1,075.18Hotel 941.29Manual Shipping Expenses 131.51Misc 1,119.86Certification Program Expense - Other 0.00 7,200.00 -7,200.00 0.0%

Total Certification Program Expense 4,684.30 7,200.00 -2,515.70 65.06%Conference Expense

Entertainment 74,684.18Food 181,455.27Hotel Expenses 3,023.69Misc. 1,844.57Refunds 3,644.34Speakers 1,836.67Conference Expense - Other 0.00 210,000.00 -210,000.00 0.0%

Total Conference Expense 266,488.72 210,000.00 56,488.72 126.9%Education Local Chapters 1,000.00 2,000.00 -1,000.00 50.0%Educational Grant 500.00Memorials 0.00 100.00 -100.00 0.0%Miscellaneous

General Liability Insurance 1,292.55Misc. 1,042.14Misc. Postage & Supplies 860.09NALTA Storage 2,112.00P O Box Rental 327.03Miscellaneous - Other 0.00 5,000.00 -5,000.00 0.0%

Total Miscellaneous 5,633.81 5,000.00 633.81 112.68%News Magazine

Design & Layout 7,800.00Postage 108.95Printing 8,849.60News Magazine - Other 0.00 20,000.00 -20,000.00 0.0%

Total News Magazine 16,758.55 20,000.00 -3,241.45 83.79%President's Travel 193.96 500.00 -306.04 38.79%Public Relations 960.61 1,000.00 -39.39 96.06%Site Selection Committee 1,805.00 4,200.00 -2,395.00 42.98%Special Gifts & Awards 1,734.32 1,500.00 234.32 115.62%Website Technology 7,603.29 12,000.00 -4,396.71 63.36%

Total Expense 320,932.85 300,300.00 20,632.85 106.87%Net Ordinary Income 11,399.01 0.00 11,399.01 100.0%Other Income/Expense

Other IncomeInterest Income 415.80Miscellaneous Income 1,161.08

Total Other Income 1,576.88Net Other Income 1,576.88 0.00 1,576.88 100.0%

Net Income 12,975.89 0.00 12,975.89 100.0%

Page 1 of 1

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NALTA Board Reports

SITE SELECTION COMMITTEE REPORT

This year’s Site Selection com-mittee is comprised of: Olga Mc-Gee – Chair, Sarah Werner, RPL, CPLTA, Linda Howerton, Tonya Fraley, CPL, CPLTA, and Nick Nel-son, CPLTA – Advisor. 2019 will be a slow year for the Site Selection Committee since the 2020 and 2021 Conference venues have been secured. Therefore, the committee is currently working on refining the site selection process and procedures.

Our 2020 Conference will be held in San Antonio, Texas at the Hyatt Regency Riverwalk. NALTA will be celebrating its 35th Anniversary while in San Antonio.

Bellevue, Washington will be our 2021 Confer-ence location. Bellevue is located approximately 9 miles from Seattle. This will be NALTA’s first year to the Bellevue/Seattle area.

In early April, Olga and Nick attended a Kansas City orientation tour sponsored by the Visit Kan-sas City convention group. Kansas City has been courting NALTA to hold a future conference in their city. Kansas City is a vibrant and growing city

which is becoming a go-to city for conferences. Per a quote from The New York Times “America’s heartland is truly coming into its own.” Did you know that Kansas City has more barbeque restau-rants per capita than any other U.S. city? Kansas City is also known as The City of Fountains and is said to have more fountains than Rome. The Site Selection committee can confirm that their guest rooms and meeting facilities are adequate for NALTA’s conference needs. Perhaps Kansas City for a future conference?

If you have a suggestion for a future conference location, please let us know. Final conference des-tination decisions are made by the NALTA Board based on information provided and hotel con-tracts gathered for various cities by the site selec-tion committee. Suggested cities for the 2022 con-ference will be presented to the board next year.

Respectfully Submitted,2018/2019 NALTA Site Selection Committee

Olga McGee, ChairSarah Werner, RPL, CPLTA

Linda HowertonTonya Fraley, CPL, CPLTA

Nick Nelson, CPLTA, - Advisor


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34th Annual NALTA ConferenceWWW.NALTA.ORG

Growth • Inspiration • Education • Participation

August 28-30 • Westminster, Colorado

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2019 NALTA Conference Brochure

REGISTRATION DETAILS REGISTRATION INCLUDES:• Conference Bag & Conference T-Shirt• Electronic Class Materials• Breakfast & Lunch for Respective Days• Wednesday & Thursday Evening Net-

working Events• Continuing Education Credits

CONTINUING EDUCATION CREDITSContinuing Education Credits will be awarded for the following organizations:

• NALTA (CPLTA)• NADOA (CDOA)• AAPL (RL/RPL/CPL)• NARO (CMM)• CLE/MCLE (States Pending)

Visit the registration potion of the NALTA website for specific continuing education credit information.

Registration TypeEARLY BIRD

REGISTRATION(Until June 21, 2019)

STANDARD REGISTRATION(Until August 2, 2019)

Wednesday Seminar

Wednesday - Member $375 $500Wednesday- Non-Member $475 $600

Thursday/Friday Conference

Two Day - Member $595 $745Two Day - Non-Member $695 $845Wednesday Seminar &Thursday/Friday Conference

Three Day - Member $795 $945Three Day - Non-Member $895 $1,045

Optional Guest Add-Ons:

Wednesday Night Event Guest Fee $75 $85Thursday Night Event Guest Fee $100 $110Wednesday & Thursday Night Guest Fee $165 $175

Cancellation Policy: Cancellation and refund requests must be provided in writing to [email protected] prior to August 2, 2019. Requestor must provide applicable details and reason for cancellation. Cancellations and refunds requested after August 2, 2019 are not guaranteed but will be considered at the NALTA board meeting following conference. All approved refunds will exclude evening night event fees and any applicable banking fees.

Register ONLINE at www.nalta.org/conferenceApproval Assistance

Need help asking for approval to attend this event? Visit the “Conference Justification Toolkit” portion of the NALTA website for additional information.

HOTEL INFORMATIONTHE WESTIN WESTMINSTER10600 Westminster Boulevard Westminster, CO 80020

• Complementary Wi-Fi in Guest Rooms• Complementary Self-Serve Parking• Valet Parking is $5 day / $15 overnight• The Westminster Promenade, a world-class

entertainment, hospitality and dining venue conveniently located across the street

RESERVATION INFORMATION$149 per night room rate + tax (tax currently 12.5%)

A limited number of rooms have been reserved for stays between 8/23/2019-9/4/2019 at the discounted rate. These rates are available until August 5, 2019.

Please reference the NALTA 2019 Conference when making your reservations.

Reserve Online at:www.marriott.com/event-reservations/reservation-link.mi?id=1548785217554&key=GRP&app=resvlink

or by phone 303-410-5000 (Option 1)


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ENTERTAINMENT & NETWORKINGNALTA plans 2 networking & entertainment evening events during conference.

Both are included with the 3-day conference registration!

WEDNESDAY EVENING:Enjoy a laid-back President’s Reception with music, food, drinks, lawn games, fire pits, and more!

THURSDAY EVENING:Travel back to the 1980s for “That 80s Night” - enjoy all things you love and remember from the decade! This will be one party you don’t want to miss.

80’s dress attire is encouraged (but not required)

additional details to be announced later

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TOPIC OUTLINE:

ConveyancesEssential ElementsFiling and RecordingTypes of DeedsMineral ConveyancesOnline Title Resources

Runsheet PreparationPurpose and Scope of the RunsheetFormatResearching the RecordsTools of the TradeAdditional GuidelinesUnusual Items/Red FlagsHelpful Hints

The Title OpinionTypes of Title OpinionsUnderstanding the Comments and Requirements

Title CurativeWhat is “Title Curative”?AmendmentsAffidavitsRatificationsReleasesSubordinationsStipulations of InterestCertified and Exemplified Copies

Title Examination StandardsPurpose and Use of Title StandardsTexas Title Examination StandardsOklahoma Title Examination StandardsStandards in Other Producing States

WEDNESDAY SEMINARAugust 28, 2019

“Marketable Title: Understanding Runsheets, Title Opinions, Curative and More”

Marketable title is the standard applied by attorneys in the preparation of a title opinion. This discussion will cover conveyancing, runsheet preparation, title examination standards, title opinions and curative measures, all from the perspective of the landman, the

attorney and the title analyst.

Curt Horne, CPL – Energy Land Institute (Landman)

Brian H. Zygo, JD – Kirby, Mathews & Walrath, PLL (Attorney)

Joey King, CPLTA – Pettigrew & Petti-grew Land Services (Title Analyst)

SEMINAR INSTRUCTORS:


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Monté Williams Bio

Monté Williams is a problem solver. His clients engage him long before litigation becomes a re-ality. His experience as a former West Virginia State Trooper means he can investigate and eval-uate situations quickly and strategically. Additionally, his law enforcement training allows him to remain calm in high stress situations. As the head of the firm’s Oil & Gas Emergency Response Team, Monté uses this level-headed approach to help clients manage rapidly evolving situations as the right people, administrative, legal, and regulatory resources are coordinated.

His efforts have proven successful in cases of energy disputes; police liability; state, county, or municipal liability; contract disputes; medical malpractice; first and third party insurance mat-ters; personal injury; products liability; and premises liability.

Monté is the General Litigation Practice Group Leader, head of the firm’s Oil & Gas Emergency Response Team, a member of the firm’s Coal Emergency Response Team, and a member of the firm’s Cybersecurity Team.

Terrill Williams Bio

Terrill Williams is the founder and owner of Petroleum Education Workshops LLC, a leading ed-ucational and training center for the oil and gas industry. He is a well known speaker, instructor, and educator in the oil and gas industry having a career that has spanned over 40 years where he has worked in the trenches, both in land and land administration. His unique instruction, resource materials, and training style reach hundreds of land professionals each year. Terrill is also the primary instructor at MSU Denver for their Petroleum Land Management Certificate Pro-grams.

Terrill has authored several industry books including: Calculating your Division of Interest, Mas-tering Lease Obligations, Rightly Dividing your Division of Interest, Basic Contracts for the Land Professional, Introduction to Petroleum Land Management, Property and Mineral Ownership, A Comprehensive Study of the Oil and Gas Lease, Curing Land Titles, Petroleum Land Practices, and Critical Legal Concepts for the Land Professional.

KEYNOTE PRESENTATIONS

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Benjamin Holliday, JDPresident, Holliday Energy Law Group PC

• Texas’ Mineral Interest Pooling Act – Does Texas have forced pooling? Recent years have seen an exponential rise in the use of Texas’ Mineral Interest Pooling Act, commonly known as MIPA, thus begging the question. This course offers an introduction to MIPA before looking at how and when the statute may be utilized.

• NPRIs 101 – An Overview of Texas’ Non-Participating Royalty Interest – The right to be paid a portion of the pro-ceeds if and when production occurs can be a surprisingly complex issue. This course reviews the basics of NPRIs, pro-vides an overview of how they are typically calculated, and examines critical issues that operators face when developing tracts burdened by NPRIs.

• 2018 Texas Case Law Update – 2018 was an active year in Texas oil and gas law. This course will review how several piv-otal 2018 cases changed Texas oil and gas law through the in-terpretation of retained acreage clauses, Texas’ Division Order Statute, offset well requirements, and more.

Brent Chicken, JDAttorney, Steptoe & Johnson PLLC

• Determining Operatorship in CO, MT, ND, UT & WY – The presentation will discuss: (i) how a company goes about se-curing the right to operate, both wells and entire DSUs, in CO, MT, WY, ND and UT and (ii) the problems companies are having with this concept in the listed states, and any ongoing legisla-tive/rulemaking efforts aimed at alleviating those problems.

Chris Pettigrew, APLMPresident, Pettigrew & Pettigrew Land Services

• Real Time Maps- Accurate Data – GIS For the Land Pro-fessional – Discover how to use your land information and databases in a GIS world. We will focus on Tracting mineral deeds, creating lease, payment and expiration maps, Forming Units, Planning future developments, identifying depths and more using GIS.

Conrad Hester, JDPartner, Thompson & Knight LLP

Aaron C. Powell, JDAssociate, Thompson & Knight LLP

• Squaring the Circle: Units in the Oil Patch – This speech will examine how the intersection of regulations and lease clauses can affect the interpretation of different “units.” The speakers will also cover recent case law on retained acreage and related issues.

Curt Horne, CPLEnergy Land Institute

• Ethics: Everything You Need to Know You Learned in Sunday School – While the title of this presentation should say it all, some of you will attend for a continuing education credit, so we will need to discuss ethics in general, why ethics are important and ways one might get into (or hopefully stay out of) trouble.

Damaris Quijano, JD, CPLTAManager – Land Business Liaison, Quorum Software

• The Ball and Chain of Chain of Title Game – An opportunity for Energy professionals to trace title, from the Court House to the Lease negotiations, by working together, to identity Roy-alty Interest ownership in a Unit

• Building a Virtual Data Room – Divestitures – Preparing company records for transfer and yourself for the process

Deana Allen, Esq., JDShareholder, Beatty & Wozniak, P.C.

Andrew Glenn, JDAssociate, Beatty & Wozniak, P.C.

• Out with the Old, In with the New – Assessing termination provisions in an oil and gas lease and how to effectively top lease

SPEAKERS AND TOPICS


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Gary Joseph, MBA, CIASenior Manager, Consulting & Advisory Services – Keane Un-claimed Property

• Unclaimed Property Risks Inherent in Purchase & Sale Agreement – State Administrators and their 3rd party audi-tors are focusing efforts to ensure compliance of companies actively engaged in M&A activity. In this presentation we’ll dis-cuss how companies can mitigate or avoid millions of dollars in unclaimed property exposure by properly structuring pur-chase & sale agreements.

• Unclaimed Property Audits of the Oil & Gas Industry – Oil & Gas companies have expressed concern of the difficulty to comply with State Unclaimed Property Laws. In this presen-tation we’ll discuss how a company can take proactive mea-sures to identify and mitigate exposure as it applies to current to pay, suspense coding and other audit focus areas.

James Dupuis, Jr., JDPartner, Kean Miller LLP

• Allocation and PSA Wells in Texas – An overview and prac-tical guide to Allocation and PSA Wells in Texas, including the history and legal background, regulatory and state law risks, a comparison and contrast of Allocation and PSA Wells to wells drilled in pooled units, and examples of various methods of allocating royalty proceeds and the pros and cons associated with each.

• The Duhig Rule: What to do with Three Halves of a Whole – How to identify and apply the Duhig rule, including an in-depth review of the Duhig case and other relevant case law, exceptions to the Duhig rule, a comparison of the Duhug rule in several producing states, and drafting tips to avoid the ap-plication of the rule.

John Scavona, Jr.Vice President, Grooper

• Magic Unicorns and What to Look for in Artificial Intelli-gence – Artificial Intelligence (AI) technology is causing wide-spread innovation and disruption. It is also causing confusion and, in some cases, not living up to expectations. What does AI offer in land lease and contract processing? Learn how to spot the hype to make smarter decisions.

Joseph Dancy, JDDistinguished Lecturer, Energy Law & EconomicsSMU Maguire Energy Institute, Dallas TX

• Technological Issues Involved in Shale Development – A discussion of some of the major issues involved in shale devel-opment and how they are being addressed

• The Last Lecture: Tips to Enhance your Luck and Career – A study of dozens of major players in the energy sector and common factors they had explaining their success – and how you can also use for your career

Kacie Bevers, JDAttorney, Steptoe & Johnson PLLC

• Post-Production Deductions (Texas) – This presentation will examine post-production costs in Texas, the effects of an “An-ti-Heritage Clause” in a lease, whether post-production costs can be deducted from an overriding royalty, and how Texas treats post-production costs differently than other states.

• Affidavits of Death & Heirship – This presentation will focus on the common problems and best practices of using affida-vits of death and heirship.

• Title Curative Game Plan – This presentation will examine challenges in title curative and provide game-winning solu-tions for those issues.

J. Keith CouvillionNorth America Land Advisor, Chevron U.S.A. Inc.

• Offshore Energy Development in the United States – The Changing Landscape – The purpose of this presentation will be to provide the audience with a general overview of the opportunities and challenges facing the oil and natural gas industry in exploring for and developing offshore resources on U. S. submerged lands. A brief history of the Outer Conti-nental Shelf leasing program will be discussed along with the current administration’s policies regarding offshore energy development. The changing regulatory environment will also be discussed as well as competing uses for offshore areas. The presentation will touch on new technologies being used and what the offshore energy industry may look like in the future.

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Maggie McConnell, JDSenior Attorney with Aspect Energy

• Litigation 101 for the Lease Analyst – This presentation provides an overview of the litigation process as well as the day-to-day impacts lease and title analysts can expect during each phase.

• Oil & Gas Contracting 101 – This presentation provides an overview of the most common oil and gas contracts.

Menecca Gibbs, CPLTALand Manager, Ax Energy Consulting

• Oklahoma Corporation Commission Spacing & Challeng-es with Legacy & New Well Development – An in depth look at the challenges the Oklahoma Corporation Commission has faced with preserving correlative rights of those in producing vertical and horizontal spacing units.

• What’s Trending at the Oklahoma Corporation Commis-sion? – What are the current rule changes at the Oklahoma Corporation Commission (“OCC”) the Technical Staff have put forward to the Commissioners and how do they impact those who file for relief at the OCC.

Rachelle Sutherland, MBALand Administration Supervisor, Venado Oil & Gas

• Land Data Management, Best Practices – This presenta-tion covers best practices and tips for developing processes around land data management and key points to look for when choosing the right land database and filing system for your company. Additional topics such as land department culture, data integrity, and how to determine the most import-ant data to capture and track are discussed.

Roberto Seda, JDPartner, Ball Morse Lowe, PLLC

• Shut-in Provisions and Their Effects – This presentation will focus on understanding the shut-in provision within a lease and will discuss its impact across multiple states.

• The Fractionalization Dilemma – This presentation will look at how mineral title has been fractionalized over the last 100+ years and what some states are doing to try to limit its effects.

Roslyn Allen, PhD, MBASenior Lease Analyst, XTO Energy

• Lease Maintenance: Keeping the Lease Alive – This pre-sentation will cover key aspects of the Lease and share daily tools needed to maintain and protect the company’s assets.

• Team Players Game Winners: Team Work – This presenta-tion will cover key tools for organizational teams on strategies for maintaining a competitive advantage through team support.

Tony BensonEnterprise Account Executive, Grooper

• Incorporating Intelligent Technology to Augment, not Replace Staff. Business transformation depends on both people and technology. However, many fear that new, intel-ligent technology will eliminate the need for human workers. The right mindset and expectations ensures success in today’s digital revolution. Learn how to modernize without losing your humanity.

Joey King, CPLTALand Manager, Pettigrew & Pettigrew Land Services

Carol Ann HartnagleGeneral Manager and Owner, Total Document Solutions

Chris PettigrewPresident, Pettigrew & Pettigrew Land Services

Roslyn Allen, PhD, MBASenior Lease Analyst, XTO Energy

Susan Eaton, CPLTASr. Land Analyst, ConocoPhillips

• Panel Discussion: What’s in the Box?: A true discussion of the work before and after the acquisition: 1. What to tack-le first; 2.Verification of title; 3.Obligations; 4. What has been acquired; 5.What more do we need to obtain; 6. What is the relationship between the buyer, seller landman and lease an-alyst. The panel discussion will be great for the seasoned land professional as well as someone new to the industry!


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Benjamin Holliday, JDPresident, Holliday Energy

Law Group PC

Damaris Quijano, JD, CPLTAManager – Quorum Software

Joseph Dancy, JDDistinguished Lecturer, SMU

Maguire Energy Institute

Roberto Seda, JDPartner, Ball Morse Lowe,

PLLC

Brent Chicken, JDAttorney, Steptoe &

Johnson PLLC

Deana Allen, Esq., JDShareholder, Beatty &

Wozniak, P.C.

Kacie Bevers, JDAttorney, Steptoe &

Johnson PLLC

Roslyn Allen, PhD, MBASenior Lease Analyst, XTO

Energy

Chris Pettigrew, APLMPresident, Pettigrew &

Pettigrew Land Services

Andrew Glenn, JDAssociate, Beatty &

Wozniak, P.C.

J. Keith CouvillionNorth America Land Advisor,

Chevron U.S.A. Inc.

Tony BensonEnterprise Account Executive, Grooper

Conrad Hester, JDPartner, Thompson &

Knight LLP

Gary Joseph, MBA, CIASenior Manager, Consulting

& Advisory Services

Maggie McConnell, JDSenior Attorney with

Aspect Energy

Joey King, CPLTALand Manager, Pettigrew &

Pettigrew Land Services

Aaron C. Powell, JDAssociate, Thompson &

Knight LLP

James Dupuis, Jr., JDPartner, Kean Miller LLP

Menecca Gibbs, CPLTALand Manager, Ax Energy

Consulting

Susan Eaton, CPLTASr. Land Analyst, ConocoPhillips

Curt Horne, CPLEnergy Land Institute

John Scavona, Jr.Vice President, Grooper

Rachelle Sutherland, MBALand Administration

Supervisor, Venado Oil & Gas

Carol Ann HartnagleOwner, Total Document

Solutions

27


Southwest Airlines:• 2% Discount on Wanna Get Away Fares• 8% Discount on Business Select or

Anytime Fares• 50% Bonus Rapid Rewards Points per

Traveler• Bonus points valid from 08/26/2019 –

09/1/2019• Discount Code – www.SWABIZ.com

select “Flight” use company/corpo-rate ID 99540394

• Booking Dates: 03/1/2019 through 09/01/2019

• Travel Dates: 08/26/2019 through 09/01/2019

• Discounts not applicable for book-ings made within two weeks of travel date

Avis Rental Car:• Up to 30% Discount – Discount is

driven by the days of the rental• Avis Worldwide Discount Number –

Q100069• See travel discount link on the NALTA

conference website or @ 800-331-1600• Booking Dates:

Discount link is active now.• Travel Dates:

08/21/2019 through 09/06/2019

United Airlines:

• 2% to 10% Discount• Z Code: ZGMF• Agreement Code: 643092• Book through: www.united.com/meet-

ingtravel and enter ZGMF643092 in the offer code box or call 800-426-1122.

• Booking Class F, J, Y = 10% Discount• Booking Class C, A, B, M, E, U, H = 5%

Discount• Booking Class D, Z, P, Q, V, W, S, T, L,

K, G = 2% Discount• Booking Dates:

Discount code is active now.• Travel Dates:

08/25/2019 through 09/02/2019

Hertz Rental Car:• Discounts vary on Car Class chosen• Discount Code – Convention Number

(CV): 022Q928• Book through: hertz.com or @ 800-

654-2240• Booking Dates:

Discount code is active now.• Travel Dates:

08/26/2019 through 09/01/2019

TRAVEL DISCOUNTS

Denver really is exactly one mile high. There is a step on

the State Capitol Building that is exactly 5280 feet

above sea level.

∙Denver has 300 days of

sunshine a year.

∙Denver has seven

professional sports teams.

∙Denver lays claim to the invention of the

cheeseburger. In 1935, Louis Ballast of Humpty Dumpty Drive-In was awarded the

trademark.

Fun FactsAbout Denver

Uber and Lyft services are available in DenverApproximate charges are $35 - $50 from the hotel to the airport

www.uber.comwww.lyft.com


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REASONS TO EXTEND YOUR STAYThrough Labor Day

• Flatirons Mall in Broomfield

• The Orchard Town Center in Westminster

• The Westminster Promenade

• The 16th Street Mall in Denver

• Pearl Street Mall in Boulder

• Denver Museum of Nature & Science

• Denver Art Museum

SHOPPING:

MUSEUMS:

• Botanic Gardens• Red Rocks• Elitch Gardens Theme &

Water Park• Water World• The Denver Zoo• Legacy Ridge Golf• Standley Lake• Bicyclists will find paradise

with over 150 miles of trails and 18 miles of Bikeway con-necting Denver and Boulder

• Ophelia’s Electric Soapbox

• Grizzly Rose

OUTDOORS:

MUSIC:

• Colorado Rockies

• Denver Broncos (See event schedule for dates)

SPORTS:

• Celestial Seasonings Factory Tour

• The Butterfly Pavilion in Westminster, Colorado

• A Taste of Colorado Festival

OTHER ACTIVITIES:

• Infinite Monkey Theorem

• Silver Vines Winery

• Balistreri Vineyards

• The Mile High Winery

• 4 Noses Brewing Company

• Rails End Beer Company

• Spice Trade Brewery

• New Image Brewing

• Bierstadt Lager

WINERIES:

BREWERIES:

29


DONATION REQUESTSWe are seeking donations and sponsorships for the upcoming 2019 NALTA Conference. NALTA is accepting cash donations, door prizes and attendee conference bag giveaways. In addition, we have limited special sponsorship opportunities. If you or your company would like to contribute, please contact our Donation Chair, Michelle Teppo at 440-813-0896 or via e-mail at [email protected]; or for your convenience, we have included a sponsorship form within this issue of NALTA News.

EXHIBITOR/VENDOR OPPORTUNITIES

NALTA is accepting Exhibitor/Vendor registrations. This is a great opportunity for your company to promote your service/product to our members. If you would like additional information about exhibiting at this conference, please contact our Exhibitor/Vendor Chair, Kelsey Peoples at 817-917-3783 or at [email protected].


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President Kayla Hale (CPLTA)

1st VP & Conference Coordinator Erica Honeycutt (CPLTA, CDOA)

Audio Visual Chair Tonya Fraley (CPL, CPLTA)

Audio Visual Committee Members Jeanette Rivas (CPLTA), Nicholas (Nick) Nelson (CPLTA), Charles Blocker, Priscilla Parsons (CPLTA)

Awards Chair Nicholas (Nick) Nelson (CPLTA)

Brochure Committee Chair Aaron Farris (CPLTA)

Brochure Committee Member Deneise Wardrup

Conference Signs Chair Susan Eaton (CPLTA)

Conference Signs Committee Member Pam Lackey (CPLTA)

CPLTA Director Lori Fisher (CPLTA)

Donations Chair Michelle Teppo (CPLTA)

Donations Committee Members Rheannon Coleman (CPLTA), Kaci Chambers

Education Chair Joey King (CPLTA)

Education Committee Members Curt Horne (CPL), Rachelle Sutherland, Roslyn Allen (CPLTA), Susan Eaton (CPLTA)

Entertainment Chair Jessica Mulverhill (CPLTA)

Entertainment Committee Members Gail Martin, Kimbra Jerman, Sarah Botkins, Carrie Respass (CPLTA), Hillary Hawkins (CPLTA), Meredith Gibson

Exhibitor/Vendor Fair Chair Kelsey Peoples (CPLTA)

Exhibitor/Vendor Fair Committee Members Pam Lackey (CPLTA), Robyn Arnold (CPLTA)

Finance Chair Cindy Nuffer (CPLTA, CMM)

Finance Committee Member Jillian Ledford

Hotel Chair Amy Hopmann (CPLTA)

Name Tags Chair Jeanette Rivas (CPLTA)

Photography Chair Connie Elliott (CPLTA)

Photography Committee Member Kevin Haring

Presidents Gift Chair Connie Willcoxson (CPLTA, RPL, CDOA)

Registration Chair Sarah Werner (RPL, CPLTA)

Registration Committee Members Cassie Lookup, Connie Willcoxson (CPLTA)

Special Projects Kelley Newkirk-Konarik (CPLTA)

Transportation Chair Liz Bicoy (CPLTA)

2019 NALTA CONFERENCE COMMITTEE MEMBERS

31



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RE: REQUEST FOR CONFERENCE SPONSORSHIP AND/OR DOOR PRIZESLadies and Gentleman:

NALTA will be hosting its 34th Annual Conference August 28-30, 2019 in Westminster, Colorado. Once again, we are plan-ning a premier event with first class education and networking opportunities. Conference details can be found in the attached conference brochure or on our website at https://nalta.org/conference/.

As you know, hosting these outstanding educational events is an expensive process. In this regard, we respectfully ask for your support and would like you to consider contributing a cash donation, door prize(s), or attendee confer-ence bag giveaways. We are offering a limited number of special sponsorship opportunities. Our donation request form is attached for additional information.

Donations can be submitted through our website, by visiting www.nalta.org/donate-to-nalta/, or via check made payable to NALTA, 4747 Research Forest Dr., Suite 180-221, The Woodlands, TX 77381. Please mail checks to NALTA, c/o Michelle Teppo, Donations Chair, 1233 Main Street, Wheeling, WV 26003.

Thank you again for your consideration and we hope that your company will be able to help. If you have any questions, please contact our Donation Chair, Michelle Teppo at 440-813-0896 or at [email protected].

Sincerely, Sincerely,

Erica Honeycutt Michelle Teppo Erica Honeycutt, CPLTA, CDOA Michelle Teppo, CPLTA 1st Vice President/Conference Coordinator Conference Donations Committee Chair

NALTA is a 501 (C)(6) non-profit corporation. Our tax identification number will be provided on request.


34

SPONSOR LEVELS for Cash DonationsBRONZEup to $999:

name recognition on conference materials*

SILVER$1,000 - $1,999:

name recognition on conference materials*, NALTA website- small logo advertisement with link to sponsor website

GOLD$2,000- $2,999:

logo advertisement on conference materials*, NALTA website- medium logo advertisement with link to sponsor website

DIAMOND$3,000- $3,999:

logo advertisement on conference materials*, NALTA website- large logo advertisement with link to sponsor website**

PLATINUM$4,000 and above:

logo advertisement on conference materials*, NALTA website- extra-large logo advertisement with link to sponsor website**, & 1 two-day registration to the 2019 NALTA Conference (including social events)

Yes, __________________________________________ is excited to help support the 2019 NALTA Conference!

I/We would like to contribute in the following way(s):

☐ I. Cash Donation in the amount of $___________________________________________

☐ II. Door Prize(s) (gift cards, electronics, corporate promotional swag, etc.)

Description (if known): _________________________________________

☐ III. Attendee Conference Bag Item(s) (anticipated quantity = 350)

Description (if known): _________________________________________

☐ IV. Please tell me more about the special sponsorship opportunities you have available.

• special sponsorships are limited

• special sponsorships require minimum support of $3,500 and will fall under the Diamond Sponsor Level

• sponsor may be responsible for sponsorship signs

*Conference Materials include: The December issue of the NALTA Magazine; Conference Signs; Conference App sponsor section**Additional Opportunity to be sponsored in the June issue of the NALTA Magazine if donation is committed by April 1, 2019

Sponsor Name ________________________________________ __________________

Contact ______ ____________________________ Phone_______________________

Email_________________________________________________________________

Thank you for your support! Please return to:

NALTA – Michelle Teppo, Donation Chair | 1233 Main Street, Wheeling, WV 26003 | [email protected] | 440.813.0896

NALTA DONATION REQUEST FORM

Growth • Inspiration • Education • Participation

August 28-30 • Westminster, Colorado

Special Sponsorships include but may not be limited to:

• Conference T-shirts

• Attendee Conference App

• Name Tags

• Keynote Speaker(s)

• Food and Drink

• Meeting Space WiFi

• Transportation

Checks should be made payable to: NALTA4747 Research Forest Dr., Suite 180-221 The Woodlands, TX 77381

“I have tried raising money by asking for it, and by not asking

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It is usually easy for a New Mexico title examiner to determine when an inexperienced Texas landman has worked a New Mexico chain of title. The best clue comes from leases taken by the landman from a person without the joinder of a spouse or when assignments or deeds prepared by the landman are signed only by one person without the joinder of a spouse.

A requirement that both spouses join in the execu-tion of certain transactions has been a part of the community property system of both the Territo-ry and State of New Mexico since 1907. See 1907 N.M. Laws, Ch. 37. A requirement that both spous-es must join in the conveyance of community real property actually pre-dates the 1907 statute, in the form of Section 6 of Chapter 62 of the Laws of 1901. The 1901 joinder statute provided that “neither husband nor wife shall convey, mortgage, encum-ber or dispose of any real estate or legal or equi-table interest therein acquired during coverture by onerous title unless both join in the execution thereof.” This statute made a considerable change in the conveyancing law of the New Mexico Terri-tory, which was grounded in the Spanish civil law. Exactly how great a change had occurred was ex-amined first by the New Mexico Territorial Supreme Court, in Reade v. de Lea, 14 N.M. 442 (1908), and then by the United States Supreme Court in Arnett v. Reade, 220 U.S. 311, 31 S.Ct. 425 (1911).

Before 1901, the civil law system controlled the alienation of marital property in the New Mexico Territory. In Reade v. de Lea, cited above, the New Mexico Territorial Supreme Court studied at length the history of community property law in Europe, in the Spanish and French New Worlds, and in the

United States. The Reade court concluded that un-der the civil community property system, the wife’s interest in community real property was a “mere expectancy.” Reade, 14 N.M. at 463. The husband had the full powers of management and disposi-tion of the community property, subject only to the condition that he could not act in fraud of his wife. He had the right to sell community property, real or personal, during her lifetime without her consent. Ibid., 14 N.M. at 450. Therefore, while it was permis-sible to apply the 1901 joinder statute prospective-ly to community property acquired after the stat-ute was enacted, the Reade court concluded that it would be an improper diminution of the husband’s right to exclusive control of the community proper-ty to apply the joinder statute to property acquired by the community before the 1901 statute was ef-fective. Reade. 14 N.M. at 463.

The United States Supreme Court, in Arnett v. Reade, 220 U.S. 311, 31 S.Ct. 425 (1911), concluded that the New Mexico Territorial legislature’s enact-ment of the 1901 conveyancing statute was meant to be applied to all conveyances after its effective date, even if the community had acquired its in-terest in the property before the joinder statute became law. Justice Holmes based the court’s opinion upon his own analysis of civil community property law. He concluded that, “It is very plain that the wife has a greater interest than the mere possibility of an expectant heir.” Ibid., 31 S.Ct. at 426. New Mexico was justified in protecting the wife’s interests in the community. Therefore, an application of the 1901 conveyancing statute to community property acquired before the law’s enactment was not an improper taking of the husband’s property right, but a valid exercise of

A BRIEF HISTORY OFNEW MEXICO COMMUNITY

PROPERTY CONVEYANCINGby Allen G. Harvey

Allen G. Harvey

37

Educational Articles

governmental authority to protect the wife’s rights. Subsequently, New Mexico’s courts rigidly enforced the joinder require-ment because it was predicated upon the possible need to protect the wife’s inter-est in community property from her hus-band’s otherwise near exclusive control. See English v. Sanchez, 110 N.M. 343, 346, 796 P.2d 239 (1990); Treadwell v. Hender-son, 58 N.M. 230, 241, 269 P.2d 1108, 1116 (1954) (Sadler, J., dissenting).

The requirements of the 1907 joinder statute encompassed only the commu-nity’s homestead. See, 1907 N.M. Laws, Ch. 37, §16. The 1907 statute stated that “no sale, conveyance, or encumbrance of a homestead, which is then and there being used as a home by the husband and wife, or which has been declared to be such by a writing acknowledged by the husband and wife and recorded in the county clerk’s office of the county, ... which is community property shall be made without the written consent of the wife.” A major reworking of the statute in 1915 expanded the joinder requirement beyond the homestead by providing that, “the husband and wife must join in all deeds and mortgages affecting real estate; Provided, that either husband or wife may convey or mortgage separate property without the other joining in the conveyance or mortgage.” This 1915 statute also included the important pro-vision that “any transfer or conveyance attempted to be made of the real prop-erty of the community by either the hus-band or wife alone shall be void and of no effect.” See, 1915 N.M. Laws, Ch. 84. A 1927 amendment added the stipulation that the spouses could convey property to each other without both spouses join-ing in the conveyance. Between 1927 and 1973 the terminology of the statute was unchanged. The dates of amendments to the joinder statute are significant, be-cause the courts examine the validity of an attempted contract or conveyance under the law in effect at the time of its execution. English, 11O N.M. at 346, 796 P.2d at 240; Hartman v. Sirao Operating. Inc., No. 21,203 (N.M., October 20, 1994.)

In the landmark case of Terrv v. Hum-phrevs, 27 N.M. 564, 203 P. 539 (1921), an

assignment of an oil and gas lease was held to be a conveyance of real property within the meaning of the joinder statute. The court so held because the lease pro-vided that “the lease shall remain in force for a term of five years from this date, and as long thereafter as oil or gas, or either of them, is produced from said land by the lessee.” Ibid., 27 N.M. at 571. Hence, the lease conveyed an indefinite, inde-terminable term, and therefore was more than a chattel interest or a mere license or incorporeal hereditament. The lease would be included within the phrase “real property of the community” as used in the joinder statute, and any convey-ance or transfer of it by the husband or the wife alone was null and void. Ibid., 27 N.M. at 576.

The passage of the New Mexico Equal Rights Amendment in 1972 necessitated a change in the joinder statute. The New Mexico, E.R.A. was an amendment to Arti-cle II, §18 of the State Constitution which mandated equality of rights under the law irrespective of sex. In response, the com-munity property law was changed in order to provide both spouses with equal powers of management and control over com-

munity property. English, 110 N.M. at 346, 796 P.2d at 239. The Community Property Act of 1973 broadened the existing joinder requirement to specifically include leases and contracts to convey community real property. The language of the 1973 joinder statute, as amended in 1975 and 1993, re-mains the law governing conveyances of community real property today. The orig-inal 1973 statute, 57-4A-7 N.M.S.A. 1953 (Supp. 1973) provided that:

A. Except for purchase-money mortgages and except as otherwise provided in this subsection, the spouses must join in all transfers, conveyances or mort-gages or contracts to transfer, convey or mortgage any interest in community real property and separate real proper-ty owned by the spouses as cotenants in joint tenancy or tenancy in common. The spouses must join in all leases and in the management of communi-ty real property or separate property owned by the spouses as tenants in joint tenancy or tenancy in common. Any transfer, conveyance, mortgage or lease or contract to transfer, con-vey, mortgage or lease any interest in the community real property or in


38

separate real property owned by the spouses as cotenants in joint tenancy or tenancy in common attempted to be made by either spouse alone shall be void and of no effect, except that either spouse may transfer, convey, mortgage or lease directly to the oth-er without the other joining therein. Except as provided above, either spouse may transfer, convey, mortgage or lease separate real property without the other’s joinder.

B. Nothing in this section shall affect the right of one of the spouses to transfer, convey, mortgage or lease or manage or contract to transfer, convey, mort-gage or lease any community real prop-erty, or separate real property owned by the spouses as cotenants in joint tenancy or tenants in common without the joinder of the other spouse pursu-ant to a validly executed and recorded power of attorney as provided in §70-1-6 N.M.S.A. 1953.

An amendment in 1975 deleted the phrase

“and in the management” from subsection A, added the phrase “if the initial term pro-vided for contemporaneously, may exceed five [5] years, or if the lease is for an indef-inite term”, to the end of the second sen-tence of subsection A, inserted the phrase “in violation of the provisions of this sec-tion”, before “shall be void” in subsection A, and deleted the words “or manage” from subsection B.

Looking back on the 1973 change in the law, the New Mexico Supreme Court con-cluded that, “the present joinder statute can be said to reflect both the earlier de-sire to protect the financial interests of the non-joining spouse as well as a de-sire to force societal change and coerce married couples to consult on major transactions affecting the community.” English, 110 N.M. at 346, 796 P.2d at 239.

The 1973 joinder statute continued the use of the “void and of no effect” language of the prior law. This was intentionally done to preserve the holdings of the earlier de-cisions in Jenkins v. Huntsinger , 46 N.M.

168, 125 P.2d 327 (1942), and McGrail v. Fields, 53 N.M. 158, 203 P.2d 1000 (1949). English, 110 N.M. at 346-47, 796 P.2d at 239.40. In Jenkins v. Huntsinger, the court held that the words “void and of no effect”, as used in the joinder statute in ef-fect at that time, would be construed as rendering any attempted conveyance in violation of the statute a nullity, rejecting the argument that the statute should be construed as meaning “voidable” only. Jenkins 46 N.M. at 171-72, 125 P.2d at 329. The Jenkins court insisted that “any ef-fort to breathe life into an instrument for which there was never any authority for its making [and which] the statute con-demns in advance as a nullity ... ought to be, as it is, wholly unavailing.” Ibid. at 178, 125 P.2d at 333. The State Supreme Court, in the recent case of English v. Sanchez, 110 N.M. 343, 796 P.2d 236 (1990), has charac-terized the Jenkins holding as treating such an instrument signed by only one spouse as being “tainted with illegality, contrary to the general public policy and therefore void for all intents from its inception.” 11O

39


N.M. at 346, 796 P.2d 239. Jenkins’ rather extreme view of the meaning of the joiner statute was reaffirmed shortly thereafter in McGrail v. Fields, 53 N.M. 158, 203 P.2d 1000 (1949), which stated that even if the court were doubtful of its earlier decision, they would not disturb it as it had become “a rule of property”.

While New Mexico perpetuated the nullity doctrine in the 1973 law, and even expand-ed its application, every other community property jurisdiction had moved away from that extreme position. No other communi-ty property state continued to use the term “void” in its statutes nor took the view that a spouse is incapable of ratifying an invalid transfer of real property. English, 110 N.M. at 347, 796 P.2d at 240. Despite the national trend away from the nullity doctrine, from the passage of the Community Property Act of 1973 until its amendment in 1993, the New Mexico courts continued to follow earlier precedents and found contracts to convey community real property not joined by both spouses “void and of no effect”, ab-sent a validly executed and recorded pow-er of attorney. See Hannah v. Tennant, 92 N.M. 444, 589 P.2d 1035 (1979); Arch. Ltd. v. Yu, 108 N.M. 67, 766 P.2d 911 (1988) (find-ing joinder statute required both spouses to sign the contract conveying community real property; signature on loan agreement is insufficient); Simms v. Craig, 96 N.M. 33, 627 P.2d 875 (1981). After the amend-ment of the joinder statute in 1973 to add “contracts to convey” to the joinder re-quirement, New Mexico courts effectively overruled their previous decisions which had allowed a breach of contract action by either the vendor or the vendee when a real estate purchase agreement lacked execution by the seller’s spouse. English, 110 N.M. at 347, 796 P.2d 240.

In Hannah v. Tennant, the court reject-ed the claim that a defective conveyance might be cured by ratification by the non-joining spouse. 92 N.M. at 445, 589 P.2d at 1036. By 1990, however, the En-glish court had begun to find troubling the sweeping applicability of the “void and of no effect” phrase of the joinder statute. But they believed that the proper initiative for a departure from the long line

of precedent lay with the legislature rath-er than with the court. However, the En-glish court felt no compulsion to expand the application of a nullity or wholly-void doctrine. The court refused to apply the joinder statute to a contract for sale of land that was fully enforceable and valid at the time of execution though signed only by one spouse, when the property at issue became community property after the execution of the contract.

The harsh effect of the “void and of no ef-fect” provision of the joinder statute was alleviated somewhat by an amendment effective June 18, 1993, which added a phrase permitting “a spouse not joined in a transfer, conveyance, mortgage, lease or contract to validate an instrument at any time by ratification in writing.” N.M.S.A. 1978, §40-3-13(B) (Rep. Pamp. 1994). It should be noted that the New Mexico Su-preme Court, in Hartman v. Sirao Oper-ating, Inc., No. 21,203 (N.M., October 20, 1994), held that this “ratification” amend-ment could only be applied prospectively, not retroactively, to correct joinder prob-lems which pre-date the amendment. The Hartman court reached this conclusion because the 1993 amendment was silent as to whether it should be applied retro-actively and because the pre-amendment statute was unambiguous. See, Hunting-ton Nat’l Bank v. Sproul, 116 N.M. 254, 263, 861 P.2d 935, 944 (1993) (holding that clear language of the joinder statute does not require both spouses to sign documents creating community debt even though debt could later encumber community real property). The “ratification” amendment contravened constructions of law which held contracts signed by only one spouse to be “unenforceable, void and with no ef-fect, absent of a validly executed and re-corded power of attorney”, therefore, this amendment could only operate prospec-tively, and not retroactively, unless the leg-islature clearly indicated otherwise. Ibid: Swink v. Fingado, 115 N.M. 275, 283, 850 P.2d 978, 986 (1993).

It should be noted that the joinder statute is “directed at the conveyance itself’ with “no limitations regarding for whose bene-fit it may be used”. C. & L. Lumber & Sup-

plv. Inc. v. Texas American Bank/Galleria, 110 N.M. 291, 294-95, 795 P.2d 502, 505-06 (1990). In Hannah v. Tennant, for example, the court allowed the joinder statute to be raised as an affirmative defense by the vendees of such a contract against the con-tracting spouses.

92 N.M. at 445, 589 P.2d at 1036. In Jenkins v. Huntsinger, the court rejected a con-struction of the joinder statute to mean that non-compliance rendered the instrument “voidable”, i.e., voidable at the election of one of the spouses. 46 N.M. 168, 125 P.2d 327 (1942). Implicit in the Jenkins court’s decision was a recognition that strangers to the marital relationship might raise the issue, which is exactly what happened in Jenkins. English, 110 N.M. at 347 796 P.2d at 240, n. 2; c.f., Mounsey v. Stahl, 62 N.M. 135, 306 P.2d 258 (1956) ( joinder issue raised by party who purchased mineral deed from man many years after the same man, then married, had conveyed the mineral interest to another individual; earlier conveyance held void).

It is interesting to note that the current law still provides that conveyances of com-munity real property not joined by both spouses are “void and of no effect” but the “ratification” amendment described above allows the ratification of a void instrument. It seems that the legislature intended that a ratification of a void instrument be regarded as an act which basically revives the nullity.

Both spouses must continue to join in con-veyances of community property (includ-ing deeds, mortgages, oil and gas leases, assignments, etc.) either by execution of the same document or through ratifica-tion. Landmen working with New Mexico property should continue to pay close at-tention to the community property laws of the state in spite of the “ratification” amendment. In addition, if a conveyance of community property is found which pre-dates the “ratification” amendment, and the conveyance was not executed by both spouses, a ratification of the conveyance will not revive the conveyance unless the ratification is executed by both spouses and contains words of grant.


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BackgroundAcquisition and divestiture (“A&D”) transactions are becoming more difficult to negotiate and close because sellers are more concerned than ever about the decommissioning liabilities associated with the properties made the focus of A&D transactions. There is a heightened concern by sellers that divestiture assets with significant decommissioning liabilities is not complete at closing and protective steps need to be taken in the transaction itself to ensure that adequate security is in place to guard against the seller being called upon by government regulators to address lingering decommissioning obligations.1

Although there has always been concern regarding lingering predecessor liability in A&D trans-actions, such concerns have been more acute as a result of recent bankruptcies in the oil and gas industry and a heighten awareness by the regulators as to decommissioning liabilities.

BOEM and BSEE have been increasingly proactive in managing decommissioning in distress scenarios. This heightened awareness by the regulators has impacted the structure of A&D transactions because sellers are placing a much greater emphasis on liability protections for historical decommissioning liabilities within the A&D transaction documentation. Increased bonding requirements, escrow arrangements, specific timelines for decommissioning to take place, and other creative measures are taking on a more prominent role in A&D transactions. As we have experienced in every A&D transaction, creativity and persistence are important to keep the transactions flowing and to address these issues to the mutual satisfaction of the seller and the buyer.

1 Because this article is a high level review of A&D transactions and financial security issues associated therewith, references will only be made to regulations and policies/protocols of the United States Department of the Interior, through its sub-agencies the Bureau of Ocean Energy Management (“BOEM”) and the Bureau of Safety and Environmental Enforcement (“BSEE”). Considerations associated therewith also apply to state regulator oversight and contractual provisions associated with decommissioning and other obligations for which security and predecessor protections may be appropriate.

Creative Approaches to Offshore A&D Transactions

With a Focus on Security and Performance Guarantees

By: Looper Goodwine P.C.Paul J. Goodwine

Samantha E. [email protected]@loopergoodwine.com

Samantha E. Marrone

Paul J. Goodwine

41


Parties to the A&D TransactionIdentification of parties to the A&D transac-tion is vitally important. In our experience, success of the transaction has greatly de-pended on the motivations and dynamics of the parties involved. When initially identi-fying and assessing the parties, we ask our-selves specific questions regarding the par-ties. Is this the first transaction between the parties? Is the seller a major or integrated oil and gas company selling to a small or new-ly formed buyer? Do the representative of each party work well together? What needs to be accomplished to generate trust? Have there been issues in the past that haunt the seller? The answers to these questions help us understand the landscape in which the parties need to negotiate. Both the sell-er and the buyer need to be realistic and demonstrate flexibility in their thinking to create the right landscape for a successful negotiation to address decommissioning li-abilities and security for such liabilities. The A&D transaction may be placed in jeopardy if a seller is too rigid in its financial security requirements or if the buyer does not rec-ognize the legitimate concerns of the seller in its need for protections. Neither party will find itself with the ideal transaction docu-ment from their isolated perspective, but by working together both the seller and the buyer may get what they need to close the transaction and utilize resources effective-ly to address decommissioning associated with the assets being transferred.

The particular motivations of the seller and the buyer need to be understood in every transaction. Sellers always want to highest price for the assets being sold, but the pro-tections associated with decommissioning may come at a cost. The financial model being analyzed by buyers to assess the transaction will need to factor in the cost of capital for the financial security, which may be significant depending on the assets being purchased. There is a trend towards sellers being more concerned with prospec-tive liability mitigation than with sales price, and buyers need to be aware of this as they approach the market. Major integrated oil and gas companies have had to undertake significant decommissioning on properties they sold years prior as predecessors in in-terest, so there is a growing change in focus from price for the assets to liability protec-

tions in case the buyer encounters financial difficulties in the future and cannot perform the decommissioning. As we have seen, the landscape is a bit different from the small, medium, and large independents (as both buyer and seller). Special considerations also need to be made for newly formed companies when they are purchasing their first assets.

Pricing and Valuation AnalysisOnce there is an understanding of the par-ties, pricing and valuation always come first in the negotiation of A&D transaction. These analyses are directly impacted by the scope, extent, and type of decommission-ing security to be provided. The interplay between and among reserve evaluation, decommissioning estimates (those of the seller, the buyer, third party experts, and BSEE) all tend to come into play. Also, are there other liable parties that impact the dynamics (e.g., other working interest own-ers or predecessors that are jointly and sev-erally liable)? Who is the designated oper-ator or the operator under the applicable operating agreement(s)? What contractual indemnities are already in place that create more comfort or less comfort as to the de-commissioning liabilities being addressed. Sometimes sellers take comfort in the other working interest partners in a specific asset. Sometimes sellers have their own indem-nity obligations which must be considered and addressed in addition to just the expo-sure to BSEE or other regulators. All of these

considerations come into play at the analy-sis stage and impact how the A&D transac-tion document is formulated.

What should never be far from the mind of the transaction participants is the ultimate goal of the process in relation to decom-missioning. Sure, the seller wants ultimate protection. Sure, the buyer wants ultimate flexibility and to deploy its capital in value enhancement, not just parking capital that it believes will never be used in a productive fashion. The key to blend all of this together is to keep the focus on the actual need: the decommissioning itself! We have found it useful to aid the negotiations and drafting of the A&D transaction documents by trying to ensure that the decommissioning security not utilized as security but is also available to actually accomplish the decommission-ing work itself when the need arises. That creates a more useful utilization of decom-missioning security and allows for all parties to concentrate on the exact issue being ad-dressed, which is the actual undertaking of successful decommissioning operations.

Types of Decommissioning Security Often DiscussedThere are many different angles to take when determining the type of decommis-sioning security to utilize. Some of the dif-ferent concepts we have seen explored to fund the decommissioning security include straight line payments on a set schedule, corporate obligations not secured by a se-


42

curity interest or other guarantee, mortgag-es on the underlying assets or production payments, overriding royalty interests, and scaling of security to the changing PV10 of the decommissioning cost estimates based upon projected commencement of decom-missioning activities. Some of the trans-actions we have worked on have utilized escrows, trusts, surety bonds or a combi-nation of these security instruments. In some cases, the parties utilize a risk analy-sis concept in which there may be separate escrows for separate infrastructure to cover off unique risks or near term versus long term decommissioning projects which can be covered by bonds.

The surety bond market is alive and well and is still a preferred method to pro-vide decommissioning security to sellers. However, such security has two potential downsides from a value perspective. First, if collateral is required by the surety provid-er, that cash collateral may be idle capital not serving any purpose other than as a back-stop to the surety to protect against the buyer’s default. The cash collateral de-ployed cannot be used to drill or sidetrack wells, pursue additional acquisitions to enhance the overall value of the buyer, or to pursue other value enhancing activities. Another issue is that BOEM may require independent financial security and pro-viding one bond to BOEM for an asset and one bond to the seller for the same asset creates a redundancy in which exacerbates inefficient use of capital.

There is a new and evolving trend which preserves surety bonds as a viable option in today’s A&D transaction market: dual or multi-obligee bonds. Recent transactions have utilized this new concept to eliminate the redundant bonding issue. Through uti-lization of a dual or multi-obligee bond, both BOEM (or another regulator) and the seller are recognized as dual obligees on the same bond with a single penal sum. Mechanisms have been included to ensure that the two obligees have an understand-ing as to utilization of surety bond proceeds if there is a default by the buyer. The end result has several benefits, the two most important of which are: (i) the buyer needs to procure, place, and collateralize only one bond (thereby preserving capital and re-

sources), and (ii) there is a better focus on utilization of the penal sum, if called, to di-rectly address the actual decommissioning to be covered through the bond in a timely manner. More information on dual obligee bonds will be discussed later in this article.

Don’t forget, in our experience creativity and flexibility are key components in deciding what type of financial assurance to utilize to successfully close an A&D transaction.

Who Pays for the Financial Assurance?Determining who pays for financial assur-ance depends on the parties and various other considerations. The seller may be eliminating more decommissioning liabili-ty from its balance sheet than the buyer is placing on its balance sheet due to differ-ent (and all legitimate) mechanisms of es-timating the prospective decommissioning expenses. However, this gap can be mutual beneficial for the seller and the buyer if ad-dressed wisely.

There is always a carrot and stick concept. There are many options when it comes to who pays the financial assurance including the complete or partial seller financing of decommissioning and direct payments (at closing, over time, upon completion of spe-cific aspects of decommissioning, etc.) by the buyer. For sellers, the number one pri-

ority is making sure the decommissioning gets done. We have seen instances where the sellers themselves support the collat-eral requirements for surety bonds with a buyer buy-back or pay down component embedded into the underlying A&D trans-action. A seller’s balance sheet may also be used temporarily for the indemnity to reduce the collateral needed.

BOEM and BSEE IssuesThe discussion regarding financial assur-ance must include a comparison of de-commissioning cost estimates as analyzed by the seller, the buyer, and third parties. However, there is another important party to consider: the United States government. BSEE assessments cannot be ignored. Since the bonds due to BOEM will most likely come into play, the BSEE assessments need to be factored into the equation. Additional-ly, the BSEE assessments change over time, which needs to be factored into the thought process. There are different options includ-ing getting credit for BOEM bonds, funding up the BOEM bonds and then seller bonds, or layering of bonds between BOEM and seller. In some instances, the parties may give credit for the bonds posted to BOEM but it is harder to get flat out credit for the BOEM bonds due to BOEM’s unpredictabil-ity. Depending on the circumstances, using mirror bonds may still be effective. Some-

43


times there is a staggering of the bonds to restrict when private bonds may be called in relation to what may or may not happen with the surety bonds posted to BOEM. Layering of bonds between those provided to BOEM and the seller may also occur. As BSEE assessments, and thus BOEM bond requirements, go up over time, seller bonds may be reduced reduced to keep the total bonding requirements static. The reverse can also be true. If BSEE assessments go down, causing BOEM bond demands to go down, seller bonds may increase in order to keep total bonding at a certain thresh-old. The industry needs more clarity from BOEM with regards to what BOEM may do for its financial security program to manage these issues more effectively in future A&D transactions. Until there is more clarity, the parties must address all conceivable situa-tions, pitfalls and nuances when determin-ing what financial assurance to use.

Dual or Multi-Obligee SecurityDual or multi-obligee security has now been accepted by BOEM. We have the firsthand experience with the creation and development to get such dual or multi-obli-gee bonds in place and have utilized such bonds in a few transactions. The initiative behind the development of the dual or multi-obligee bond was to maintain one surety bond to reflect the cross-over of the liabilities associated with the property in the transaction. This dual obligee securi-ty allows both the BOEM obligee and the seller obligee to call the bond to get the decommissioning work accomplished. The dual or multi-obligee bond protects both the BOEM and the seller and ensures that all parties have access the bond if the buyer defaults. To maintain trust among all affect-ed parties (being BOEM, the seller, the buy-er, and the applicable sureties), we started with BOEM’s supplemental bond form and worked from there to create a bond tem-plate that could be negotiated by the affect-ed parties. We used the definitions from the supplemental bond form, made tweaks and additions, and we made sure the bond was applicable to both leases and ROWs. The template was prepared on a lease by lease basis and a ROW by ROW basis to en-sure that changes in the BSEE assessments can be handled with clarity and ease. This

template also allows for sureties to more effectively pick and choose liabilities to be covered, which allowed stand-alone sure-ties to price the cost of the bond (from a premium and collateral perspective) on an asset by asset basis. The bond template we helped create is now referred to as a “multi-obligee performance bond” and like supplemental bonds, it is a payment bond. The key definitions include “BOEM Obli-gee”, which is BOEM as one of the co-obli-gees; “Seller Obligee,” which is the seller in the transaction as one of the co-obligees of the bond; and “Co-Obligees,” which is both the BOEM and the seller as co-obligees of the bond. However, this multi-obligee per-formance bond is not a form of bond. It was created and negotiated for a specific transaction and has been re-negotiated in the subsequent transactions. This process and outcome of creating a new template of a bond demonstrates the value of bringing creativity to the discussions regarding fi-nancial security. There were many points of negotiation and resolution throughout the process with all the parties. We had to make sure to recite all the capacity and liability issues for the co-obligees to BOEM, includ-ing predecessor lessee and/or predecessor ROW holders. We included notice of default nuances to ensure all parties were protect-ed in the event of default and action taken against the bond by either of the co-obli-gees. Our multi-obligee performance bond template focused on the timing to confirm that the decommissioning work to be ac-complished in a timely fashion if the bond is called, the use of the bonds proceeds directly for the covered decommissioning, and traditional rights of the sureties.

An important specific provision of the multi-obligee performance bond is the provision detailing the “decommissioning obligations.” This provisions defines “de-commissioning obligations” as “any de-commissioning obligations or requirements imposed on both the principal of the bond (e.g., the buyer) and the seller obligee aris-ing from (i) the lease or ROW interests, (ii) any regulations of the Department of Inte-rior, (iii) any instrument issued, maintained, or approved under the Outer Continental Shelf Lands Act (43 U.S.C. §§ 1331 et seq.) related to the record title, operating rights of ownership interests in the lease or ROW

transferred to the principal pursuant to the transaction and that accrued before the principal acquired its record title, operating rights or ownership interests therein and remained unperformed on the date that BOEM oblige approved the assignment of such interest from seller oblige to principal.” This provision ties the obligations covered specifically to what liabilities are joint and several between the seller and the buyer. The bond, in another provision, maintains the liabilities created by the buyer for which the seller has no liability, by stating that any decommissioning obligations associated with the lease or ROW and for which the seller obligee has no liability shall be cov-ered by separate and distinct financial as-surance provided to BOEM Obligee by the principal or another party. As stated in an-other provision of the bond, nothing in the bond expands the obligations and liabilities of the seller obligee, which was a vitally im-portant point to address in the process.

This multi-obligee performance bond worked because of the common and collec-tive motivation for the A&D transaction it-self and for future transactions. The parties, including BOEM, had a common goal of ensuring that the decommissioning liability was covered. At the time we recognized that creativity and fresh thoughts were required to get the financial assurance needed for these specific A&D transactions. This was accomplished with creativity and the right parties, none of which were afraid to break new ground and to work cooperatively.

Drafting Considerations and ConclusionThroughout the entire process of address-ing financial security for decommissioning in A&D transactions, certain drafting consid-erations need to be addressed and recalled, time and time again. The form of financial security must have flexibility to account for changed circumstances, such as the chang-es in BSEE assessments. There is major in-terplay with the BOEM financial assurance requirements, both now and anticipated. The most important elements necessary for drafting a form for financial security is cre-ativity and ensuring the financial assurance is designed to get the plugging and aban-donment done.


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Marsha Ellison v. Three Rivers Acquisition, LLC, et al. reminds us what is required for an instrument to be a conveyance and what is required for a stipulation to be effective.

When J.D. Suggs died in 1925, his heirs agreed to swap land with the No-elkes, and executed the Suggs Deed conveying several tracts to the No-elkes. One tract was described as “all of … the lands located North and West of the public road which now runs across the corner of [the sur-vey], containing 147 acres more or less.” There was a problem: There were actually 301 acres in the section northwest of the public road.

The parties and their successors always treated the Suggs Deed as con-veying 301 acres, not 147. Nevertheless, in 2008 Samson Oil and Gas

asked Jamie Ellison (who had acquired a mineral lease on the Northwest Tract), to sign a letter confirm-ing acceptance of a Boundary Stipulation purporting to resolve the discrepancy in the Suggs Deed. The Boundary Stipulation would have moved the property line to a new location consistent with an original conveyance of just 147 acres, but neither it nor the letter contained words of conveyance. The letter prom-

Charlie Sartain Decker Chance Wood Ethan

Authors: Charles Sartain, Chance Decker and Ethan Wood

A Lesson in Property

Stipulations

45


ised a more formal and recordable document after his acceptance. No such document was prepared, but the letter accompanying the Boundary Stipulation was signed by Ellison.

Was the Boundary Stipulation a legal conveyance? If not, was it an agreement to correct an ambiguity that was subsequently rat-ified by Ellison? The answers are no and no.

Necessary Elements of a ConveyanceA conveyance need not have all the “formal parts” of a deed or contain the right “technical words.” An instrument signed by the “grantor” will act as a conveyance of real property if a grantor and grantee can be identified and there are words of grant showing an intention of the grantor to convey an interest to the grantee. The Boundary Stipulation had none of these elements, and therefore was not a legal conveyance.

To Have a Stipulation You Need an “Ambiguous” DeedTurning to whether the Boundary Stipulation was binding to settle “uncertainty, doubt or dispute” as to the location of a boundary line, the court noted that such uncertainty must exist on an ob-jective basis and is an essential element to permit “stipulation agreements” to change the boundary line. In Texas, where a dis-crepancy exists between a metes-and-bounds description and a recited acreage number, the metes and bounds description con-trols. Thus, there was no objective uncertainty as to the location of the boundary line. Because the Boundary Stipulation was effec-tively “void,” and because void deeds cannot be ratified, Ellison’s signing of the letter accompanying the Boundary Stipulation was not a ratification of the “new” boundary line.

Correction DeedsThe opinion contains dicta (non-lawyers: expression of opinion on a point other than the precise issue involved in determining a case) that may give pause to oil and gas and real estate practi-tioners. The court noted that the Boundary Stipulation was “close in nature to a correction deed,” and in the case of correction deeds, “the underlying deed must … possess some ‘ambiguity or error’ to correct.” According to the court, there was no ambiguity as to what the Suggs Deed conveyed.

Free Practice TipWould a “Correction Deed” instead of a “Boundary Stipula-tion” have been effective to change the legal description in the Suggs Deed? Given the difficulties in determining whether an in-strument is actually “ambiguous,” practitioners should consider including words of cross-conveyance in correction deeds that make material corrections.


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DisclosureThe author has in the past secured escheated funds for clients held by the Comptroller of the State of Texas (“Comp-troller”) and is now an attorney of record in an appeal of a ruling by the Comptroller denying his client’s claim to aban-doned/unclaimed mineral proceeds (“mineral proceeds”) presently held by the Comptroller.1 This article represents the author’s independent analysis and conclusions regarding a recent interpretation of the escheat statutes by the Comp-troller which have resulted, in the author’s opinion, in an unreasonable confiscation by the Comptroller of monies attrib-utable to escheated oil and gas mineral/royalty interests.

NOTE: Where pertinent and potentially helpful, the author has included legal references to Texas statutes/cases.

1 He is also an attorney responsible for the writing of an Amicus Curiae brief in the case of Enerlex, Inc. v. Glenn Hegar, Texas Comptroller of Public Accounts, a companion case to his case, involving some of the same issues.

Escheat of Abandoned/Unclaimed Mineral Proceeds in Texas

By Terry E. Hogwood – Attorney At Law

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Purpose of ArticleThe purpose of this article is to alert all Tex-as mineral/royalty owners and buyers that, under a recent unpublished interpretation of the term “assignee” by the Comptroller, as the same appears in Texas Property Code, Section 74.501(e)(1), a grantee in a deed of conveyance that:

i. conveys a mineral or royalty interest;

ii. which interest has escheated and

iii. resulted in the deposit of mineral pro-ceeds with the Comptroller, will not be entitled to any of the mineral proceeds held by the Comptroller which accrued prior to the date of the deed EVEN IF the

deed specifically provided that the own-ership of such mineral proceeds was to pass to and vest in the grantee in the deed.

Example - Enerlex, Inc. v. Glenn Hegar, Texas Comptroller of Public

A owned a mineral/royalty interest located in Texas. The mineral proceeds attributable to A’s interest had escheated to the Comp-troller. The Comptroller identified A as the reported owner in its official escheat records dealing with mineral/royalty proceeds. A sold its mineral/royalty interest to B, includ-ing the right to all escheated royalty funds, by validly recorded mineral deeds.

B thereafter sent its mineral deeds to the

Comptroller and requested it to forward all funds formerly attributable to A’s interest and now held by the Comptroller as cus-todian for B, the new owner. B’s request for the funds was denied. Worse still, the Comptroller paid part of those escheated mineral proceeds, which had accrued pri-or to the date of the conveyance, to A even though A no longer owned any mineral/royalty interest in the lands at issue and had specifically conveyed those mineral proceeds to B.

Analysis - The escheat statutes set out in Ti-tle 6, Texas Property Code, deal in part with mineral/royalty interests whose owners can-not be presently located. These statutes cre-ate a custodial process whereby the State of


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Texas (through the Comptroller) becomes the custodian of those un-locatable min-eral/royalty interests and any mineral pro-ceeds attributable to such interests. Title to the escheated mineral proceeds does not change when the State assumes custodial possession. Texas Workers Com-pensation Com’n v. Texas Mun. League In-tergovernmental Risk Pool, 38 S.W.3d 591 (Tex.App. — 2000) Title 6 creates a proce-dure for each “lost” owner to reclaim its lost property but allows the State (through the Comptroller) to use the escheated property (mineral proceeds) until a claim of owner-ship has been asserted. Clark v. Strayhorn, 184 S.W.3d 906 (Tex.App. — 2006)

§75.002 of the Texas Property Code specifically deals with the procedure for a person (B in our example):

i. to purchase a mineral/royalty interest and any associated mineral proceeds (defined to include royalties and pay-

ments accruing to such interests) from the reported owner thereof (A in our example) and

ii. to perfect title to that interest by filing documentation with the Comptroller demonstrating that the transfer to the purchaser was executed by the reported owner. No mention is made in §75.002 of the right of the Comptroller to refuse to honor the conveyance of a real property interest (mineral/royalty) nor to deny payment of monies attributable to such interest which accrued prior to the date of the mineral conveyance.

Except…. Under an apparent Comptroller non-published administrative interpreta-tion, grantees of mineral proceeds under otherwise valid mineral/royalty deeds will not be awarded any such mineral pro-ceeds which accrued prior to the date of the conveyance and which are held by the Comptroller and attributable to the miner-

al/royalty interest being conveyed. This in-terpretation pertains even where the deed specifically conveys such mineral proceeds to the grantee! To the author’s knowledge, there is no written explanation of this policy. Rather, the policy is thrust upon a grantee of a mineral/royalty interest with escheated mineral proceeds when its application for a return of those funds is denied– surprise!

The legal reasoning (actually the lack there-of) of the Comptroller in denying B any of the mineral proceeds which accrued prior to the date of the conveyance and which were clearly conveyed to it appears to be premised on Texas Property Code §74.501(e)(1) which reads in part as follows:

“Except as provided by Subsection (f), the comptroller may not pay to the following persons a claim to which this section applies:

(1) a creditor, a judgment creditor, a lien-

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Conference Recap

holder, or an assignee of the reported owner or of the owner’s heirs; or…”

Based on the term “assignee”, the Comptrol-ler has internally (and incorrectly) decided, without any administrative public hearings or legislative guidance:

i. since the typical mineral/royalty deed has in its granting clause the words “grants, bargains, sells, conveys, trans-fers, assigns and delivers”, which words of grant are used in conjunction with both the conveyance of the mineral/roy-alty interest as well as any and all miner-al proceeds which may have accrued to the interest being conveyed

ii. that therefore the grantee in the mineral/royalty deed is an assignee for purpos-es of Texas Property Code §74.501(e)(1) and the Comptroller does NOT have to pay any of the mineral proceeds which accrued prior to the date of the conveyance.

There is only one thing wrong with this rea-soning – it has no basis whatsoever in Tex-as law. Without delving too deeply into the legal weeds concerning statutory interpre-tation, there exists in Texas a canon of inter-pretation governing this case — otherwise known as the Associated Word Doctrine. Fiess v. State Farm Lloyds, 202 S.W.3d 744, 750 (Tex. 2006).

The Associated Word Doctrine addresses interpretation problems where a vague or indefinite term is grouped in a list with other clearly defined and limited terms. The Doc-trine requires that the vague term be given a related meaning and prohibits giving to one word or term a meaning so large that it is no longer consistent with the other terms in the list. Thus, the term “assignee of the reported owner” is a member of a class of people with the other three class members (a creditor, a judgment creditor, a lienholder). All four classes deal with the creditors of the owner of the mineral/royalty interest and the min-eral proceeds associated therewith. This is a very clear and limited set of people to whom the Comptroller may not pay a mineral pro-ceeds claim.

None of the four classes of people to which the payment limitation applies are “grant-

ees” in a mineral/royalty deed”. It is clear from a reading of the cases dealing with stat-utory interpretation that the term “assignee of the reported owner” was intended to be interpreted as “assignee under an assign-ment for the benefit of the creditors” of the reported owner.2 B is NOT an assignee for the benefit of the creditors of A. Rather, it is the grantee in a mineral deed from A where-in all right, title and interest of A was sold to B, including all mineral proceeds associated with that mineral interest regardless of the date the mineral proceeds accrued.

The Comptroller’s position that the date of the accrual of the mineral proceeds is the controlling factor is a farcical, made-up analysis that had to be fitted into the new narrative of the Comptroller – monies attrib-utable to a mineral interest deemed aban-doned/escheated by the Comptroller and paid to the Comptroller will not be paid to the purchaser of the mineral/royalty interest if they accrued prior to the date of the sale of such interest nor can they be paid to the “record owner” since /it no longer owns the right to claim these funds. The absurd re-sult - The State wins, it keeps the funds at-tributable to the escheated interest which accrued prior to the date of the conveyance. B is wrongfully deprived of its property for which it paid a valid consideration.

Owners of property interests, be they real property interests or personal property in-terests such as mineral proceeds attribut-able to a mineral interest held by the Comp-troller as unclaimed/escheated mineral proceeds, should be able to sell those in-terests on whatever basis and for whatever consideration the parties to the transaction deem appropriate. The Comptroller’s po-sition is clear – if you buy or sell a mineral/

2 Assignments for the benefit of creditors was and is a substitute for bankruptcy. There have been time periods in U.S. history where there was no federal bankruptcy law. The first bankruptcy law in the United States came into being in 1800. This law was repealed in 1803 and was followed by the Act of 1841. The 1841 law was repealed in 1843 and was succeeded by the Act of 1867, which was amended in 1874 and was later repealed in 1878. The Nelson Act of 1898 became the first modern Bankruptcy Act in the country. The next modern bankruptcy law was enacted in 1978 by the Bankruptcy Reform of 1978. During these time periods and after these time periods, assignments for the ben-efit of creditors were and still are a useful tool.

royalty interest with any associated mineral proceeds which have escheated to the State of Texas prior to the date of the deed, the seller and purchaser of that interest, even if they specifically contracted for the convey-ance of such funds, will not be successful in seeing the transfer of such funds from the seller to the buyer. How will this be accom-plished? The Comptroller will refuse to rec-ognize the validity of a legal deed of convey-ance between two private parties.

The Comptroller’s “interpretation” of §74.501(e)(1) results in the mineral proceeds attributable to the mineral/royalty interest being conveyed prior to the date of the deed either: (i) being kept by the Comptroller or (ii) being returned to A (in our example) in express violation of the terms of the deed, potentially violating both the federal and state constitutions regarding the taking of property without just compensation under the Fifth Amendment of the United States Constitution and Section 17 of the Texas Constitution. Such action on the part of the Comptroller could also be held to be a de-nial of the right of A and B to buy and sell a mineral/royalty interest under contractual terms and conditions of their choosing in vi-olation of Section 10, Article 1 of the United States Constitution and Section 16, Article 1 of the Texas Constitution (abridgment of the right of contract).

Conclusion: Buyer(s) and Seller(s) of miner-al/royalty interests beware! Otherwise valid and clear deeds of conveyance are presently being “interpreted” by the Texas Comptrol-ler’s office, when escheated mineral pro-ceeds are involved, to result in an outcome favorable to the State of Texas, not the par-ties to the deed. What may have been the partial basis for the sale may now be held by the Comptroller, forcing the buyer to sue for its recovery. This administrative interpreta-tion simply cannot stand. The Comptroller should immediately reverse it and allow the parties to contract with respect to escheat-ed mineral proceeds in whatever manner they choose.


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NALTA Conference 2018ORLANDO, FLORIDA

Amy Rhame, Lease Analyst for SEM Operating Co.,LLC | ETX-ALTA Grant Winner September 26, 2018

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Conference Recap

The Renaissance Orlando at Sea WorldChoosing one word to sum up the loca-tion of this year’s conference would be difficult, but the first word that comes to mind is LUXURY. Anyone in attendance this year knows that one word is not enough to describe this magnificent hotel. The staff could not have been nicer, customer ser-vice is second to none here. It is easy to see why NALTA chose this beautiful location for their conference. The rooms were spacious, comfortable and accommodating. Did I mention there was a Starbucks on site?!

The PeopleHow exciting to find a group of people who are as passionate about what we do for a living as I am. It is not often that we can speak about our jobs and find someone lis-tening that actually cares about or even un-derstands what we are saying. Am I right?!

Upon arrival, I made it my personal mission to meet as many people as possible during my stay at the conference. By the end of the trip, I realized I did not meet nearly as many as I should have. I was so captivated with the people with whom I had the honor to share some time; so fascinated, in fact, I could not pull myself away and try to meet more of the wonderful people all around. Oh well, there is always next year’s confer-ence, I cannot wait to meet more excellent people in Denver.

The ClassesNALTA gathered such a dynamic group of speakers for this conference. I learned so much over the course of two days. If you did not get a chance to meet Mr. Montè Williams who shared with the class his crisis management trouble-shooting tips for Ms. Berkley, you really missed out. Mr.

Williams has an awesome sense of humor. The class both learned and laughed A LOT. Another excellent speaker, Ms. Erica Honey-cutt, covered two separate courses on our favorite program, Excel. The groans coming out of her classrooms must have been con-fusing to passers-by; but to all of us inside those rooms, we totally get it now. Thou-sands-upon-thousands of man-hours were saved due to her insights, no doubt!

If you needed a bit of terror in your life, attending Mr. Joseph Dancy’s class on Cy-ber- Security in the Energy Sector inspired enough fear to keep you scared into the next millennium! I particularly enjoyed both Key-Note Speakers. Mr. Lou Mongel-lo and his insights from Walt Disney. I will always remember now that Mr. Disney was fired from his first job for not being creative enough. Next, Ms. Alyce Hoge and her ten ways not to submarine my career, I am not willing to admit I am guilty of any of those things… but I took feverish notes just in case. Thanks, Ms. Hoge. The speakers were all vibrant, intelligent and energetic, and their topics were so in touch with my goals/needs. I must say there were many excel-lent speakers I have not mentioned here. I promise it’s not because I did not learn a lot from you guys as well (*cough* *cough* Mr. Bud Weinstein, Mr. Curt Horne, Mr. Doug Potter and Ms. Stephanie Hines.) I’m sure I’ll be applying the knowledge acquired from this conference every day of my career. The topics were so great, I cannot over-state the difficulty I had in choosing which classes to attend each session, if only I could master being in two places at once!

In ClosingI cannot emphasize enough how wonderful this trip has been. I am sincerely grateful for the opportunity to attend this year’s NALTA Conference. Thank you, ETX-ALTA, for mak-ing it all possible!

Amy Rhame


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1ST QUARTER 2019 NALTA Local Chapter Spotlights

FEATURING:

PLEASE CHECK WWW.NALTA.ORG FOR A LISTING OF UPCOMING LOCAL CHAPTER EVENTS!

ALTA

Houston Association of Lease and Title Analysts

Page 54 Page 56

ETX-ALTA

East Texas Association of Lease and Title

Analysts

Page 53

AT-LARGE

Association of Lease and Title Analysts

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Chapter Spotlights

What is an At-Large Member? An At-Large Member is one who has no local chapter in their geograph-ical area. Often times people will confuse this with those who choose not to be a member of their lo-cal chapter. A person who chooses not to join their local chapter, for whatever reason, is still able to network and seek out industry related education events in their area through the local chapter, whereas a true At-Large Member does not have that luxury. Part of my goal has been to allow others to truly understand the disadvantages an At-Large Member faces and appreciate our unique needs. It has been a challenge even for me, as a board mem-ber the past few years, to find ways to best help the At-Large membership. While many ideas had been considered in the past, a webinar was the best way to include all members while also benefiting the At-Large membership and although the idea of a we-binar started a couple of years ago, it was not until this year we had enough involvement to turn the idea into a reality.

On March 28th a Power Lunch Hour webinar was presented by Kacie M. Bevers, JD of Steptoe & John-son, PLLC. Her presentation, “Curative Game Plan”, was a huge success much due to her upbeat per-sonality and very informative explanation of title curative. The webinar was open to everyone and a discount was offered to NALTA members. We were pleased to have such an interest in our event with a total of 125 registrants! In our follow up survey, it was clear that the convenience of online edu-cation was a motivator, so we will be working to offer another webinar as soon as possible. I also want to thank each of those who stepped in and helped make this event such a success. If you are an At-Large member and not sure how you can help, please contact me as there are endless ways to get involved. If you were not able to participate in our webinar but would like to suggest future speakers and/or topics, email me your ideas!

Our 2018 budget was used to make the most out of the conference in Orlando. We were able to donate sev-eral door prizes and give-away items for the At-Large booth. In addition to our donated items, we were able to assist one grant recipient with travel. With the suc-cess of our webinar, we look forward to being able to do more for the upcoming conference in Westminster!

Respectfully submitted,Priscilla J. Parsons, [email protected]

Priscilla Parsons

AT-LARGECHAPTER SPOTLIGHT


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2019 ALTACHAPTER SPOTLIGHTALTA membership is approximately 375 as of first quarter 2019. As 2018 ended, ALTA’s membership count was 360. ALTA welcomed 57 XTO Energy em-ployees, who moved to Houston from the DFW area last summer, by inviting them to the August Luncheon at member rate. To date over 40 XTO em-ployees have joined ALTA as new members. ALTA Membership has increased by over 60 since the 2019 Membership Drive began October 1 running through March 31, 2019. New members who join prior to the next year enjoy member rates at events for remain-der of year plus their membership status carries over thru the following year.

ALTA works diligently each year to increase its mem-bership. ALTA hosted an after-hours social last spring. ALTA also initiated a luncheon attendance incentive

program that ran for seven months. The program started with the April Luncheon through to Novem-ber’s all-day Seminar. Each month the luncheon at-tendees were tracked; then their names went into prize drawings based on the number of luncheons attended! Names were drawn and prizes totaling over $450 were awarded at the December Holiday Lun-cheon – winners had to be present to win! Prizes in-cluded cash toward a future luncheon plus valet park-

Robyn Arnold

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Chapter Spotlights

ing ($50 value), one-year memberships to both ALTA and NALTA, ALTA engraved insolated cup, and gift cards.

Last year, ALTA awarded a total of five grants to NALTA Confer-ence, in addition to the one conference grant that NALTA gifted to ALTA. ALTA budgeted to make the same grant commitment to ALTA membership this year as well. Annually, ALTA’s conference grant winners enjoy registration for the two-day conference and two-night hotel stay. ALTA also compliments the NALTA confer-ence grant winner with a two-night hotel stay. ALTA does require that grant winners be members of both ALTA and NALTA to be eligible to win. ALTA grants are transferrable and winners are urged to surrender their prize back to ALTA if they find that they cannot attend conference so the grant can be awarded to an-other member. The goal is to make it possible for as many mem-bers to enjoy the benefit of attending the NALTA conference.

ALTA contracts with downtown Houston Petroleum Club for its monthly luncheons. ALTA hosted the 2018 August luncheon in The Woodlands (20 miles north of downtown) at the Hyatt Ho-tel. Repsol, also located in The Woodlands, generously hosted ALTA’s all-day Seminar last November. With both events being held in The Woodlands, it was easier for people who work in the far north Houston area to attend. In 2018, ALTA sponsored a survey which was sent to all ALTA contacts in order to better plan and meet the needs and expectations of its members and guests. Overall, ALTA’s 2018 attendance and early 2019 atten-dance at luncheons and seminars has increased since 2017. We attribute this to industry turn around, the enlistment of superb speakers, and topics by ALTA 1st Vice Presidents and Education Directors, who do outstanding jobs ensuring that topics are rele-vant to attendees, as well as meet the CPLTA, HAPL, HBA, CDOA, CPL and APPLE credit standards.

ALTA 2018 Member of the Year was awarded to Joey King and the 2018 Prism Award was awarded to Pettigrew and Pettigrew Land Services at the October Manager Appreciation Luncheon. These awards go to individuals and companies who support AL-TA’s mission; above and beyond expectations. Bo Porter, inspi-rational speaker, addressed the attendees with his motivation-al presentation, “The Traits of a Leader”. ALTA budgets $500 for

manager gifts. In 2017, following Hurricane Harvey, ALTA invited managers to vote on how they would like that manager gift to be distributed among three different local charities. ALTA repeated this in 2018 and managers voted to distribute their gift amongst a local food bank, a local pet rescue and Bo Porter’s Self Foun-dation; a charity that supports youth education and sports.

ALTA’s CPLTA Liaisons held a two-day review, graciously hosted by Equinor in October, prior to the October 5th CPLTA exam date that hosted by Percheron. New CPLTA’s will be recognized at up-coming luncheons in 2019.

ALTA wrapped up 2018 with its annual holiday luncheon on De-cember 10th. Over 140 attendees enjoyed “Holiday in Vegas” with a roving magician, photographer, and a visit from Blue San-ta. Blue Santa is Houston Police Department’s very own Santa who takes toys to children who might otherwise not have a very merry Christmas. Attendees were invited to bring unwrapped toys for distribution. ALTA made its annual donation of $500 to the Blue Santa program. ALTA also awarded $2,000.00 in cash to 30 lucky winners at the luncheon!

ALTA began 2019 with a strong ALTA Board of Directors, half of whom are new to the ALTA board, and determined to keep ALTA strong and vital to today’s Houston area Lease and Title Analysts. The ALTA board is reviewing the current By-Laws and Standing Rules, last updated in 2013, to make sure they are up to date and relevant. The ALTA board is busy planning a half day seminar in April, following the monthly luncheon, and a gift basket raffle drawing to raise funds for the scholarship program. ALTA is investigating the possibility of hosting webinars as it goes forward, doing what it does best, honoring and educating its members and guests. In 2020 ALTA will be 40 years old! We are looking forward to a yearlong celebration of this incredible milestone.

Respectfully Submitted,Robyn Arnold, CPLTA

2019 ALTA Liaison


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ETX-ALTACHAPTER SPOTLIGHT

Wendy Morgan

ETX-ALTA is off to a great start for 2019! We held our membership social, Chills and Drills, on February 21st at Kawa’s Hibachi Grill in Tyler and our theme was “Mardi Gras”. It was well-attended; everyone had a fun time and the food was delicious. Michael Rogers, with Tanos Exploration, was the winner of our King Cake drawing.

Our first chapter meeting was held on March 7th at Spring Creek BBQ. The program was presented by Silas Martin from Drilling Info. The focal point of his presentation was the Courthouse portion of the pro-gram and the many useful ways it can be utilized by the lease and title analyst, broker, and landman. Also included in the presentation was how the Drilling Info Courthouse is built to serve the modern consumer, along with new technology that is being developed which will help shape the next 5 years in title. Lease clause identification is just one upcoming feature. NALTA granted 1 CPLTA credit, NADOA granted 1 cred-it, and the AAPL granted 1 credit along with 1 ethics credit for attendance.

At our next board meeting on April 4th, we will be mak-ing final plans for our half day Spring Seminar that will be held on April 25, 2019, at the west campus of Tyler Junior College. The presentation is entitled “Acquisi-tions and Divestitures: A Panoramic View from an In-House Landman, Legal and Field Landman Perspec-tive”, and will be presented by Brady Scarborough, Landman, with Tanos Exploration, Melanie Reyes, At-torney with Flowers Davis, and Brandon Martin, Proj-ect Manager with Ted W. Walters & Associates. We are looking forward to a great turnout as this information will benefit the seasoned professional and rookie in land departments and brokerage firms in our indus-try. CPLTA, NADOA and AAPL credits are pending.

On July 27, 2019, a field trip is scheduled to the East Texas Oil Museum in Kilgore. Time allowing, we may also go to New London, Texas, where a school explo-

sion took place on March 18, 1937, due to a natural gas leak in the school basement, destroying the school. This tragedy saw 295 people lose their lives and 300 non-fatal injuries occurred. It also brought about the odorants being placed in natural gas so that a leak can be detected much easier.

Our fall seminar is currently scheduled for October 3, 2019. We are actively preparing our curriculum to provide a great day of learning and networking. More details will follow.

A chapter luncheon meeting is scheduled for No-vember 14, 2019 and we will close out the year with a Christmas themed mixer on December 12, 2019, where we will swear in the new Board.

We want to invite you to “like” our Facebook Page – East Texas Association of Lease and Title Ana-lysts-ETX ALTA.

Respectfully submitted,Wendy Morgan

PALTA 2018 Officers and Directors

President: Christie Osburn

Vice President: Paige English

Secretary: Linda Stokes

Treasurer: Dana Steed

Liaison: Wendy Morgan

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Chapter Spotlights


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Chapter Spotlights

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201SUBMISSION DEADLINES: First Quarter: January 15th, 2018 (March Issue); Second Quar-ter: April 16th, 2018 (June Issue); Fourth Quarter: October 15th, 2018 (December Issue)

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*Please note that all selections made above will be reviewed and verified by a member of the advertising committee before ad placements are confirmed. All 2019 fees are due within 30 days of ad confirmation.

Ad Size Single Issue B/W One Full Year(3) Issues B/W

Single IssueColor

One Full Year(3) Issues Color

1/8 page $50.00 $100.00 $100.00 $250.001/4 page $100.00 $300.00 $200.00 $450.001/2 page $200.00 $400.00 $250.00 $550.00Full page $300.00 $500.00 $350.00 $950.00

Premium Ad Placements:Inside Front Cover $550.00 $1,150.00Page 3 (Next to inside Front Cover) $500.00 $1,050.00Inside Back Cover $500.00 $1,050.00½ Page Back Cover $475.00 $1000.00

Ad Type Monthly Fee Yearly Fee Location ChoicesNALTA.org Static Ad

$100 $1,000 Homepage, Certification, Annual Conference or Membership Directory

NALTA.org Rotating Ad

$60 $650 Homepage, Certification, Annual Conference or Membership Directory

2019 NALTA NEWS ADVERTISING RATES

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National Associationof Lease and Title Analysts

4747 Research Forest Drive, Suite 180-221The Woodlands, TX 77381

www.NALTA.org

nalta news€¦ · 08 letter from the president, kayla hale, cplta 09 letter from the past...

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