The Oklahoma Bar Journal May 2024

may be marked “do not forward,” preventing them from being delivered even if a change of address has been filed with the Postal Service. A change of address is generally required to be submitted directly to the oil and gas company. Accounts may even have thousands of dollars in suspense that, if discovered, may be distrib uted to an applicant. Requests for information from oil and gas companies can be made via email, often with quick response. 7 Communication with oil and gas companies is often most effective and efficient when done by email. 8 Oil and gas companies do respond to owner inquiries, but they often work with thousands of (or more) royalty owners. Sometimes

Medicaid eligibility for long-term care services, but it is useful in other regards as well. Through this comprehensive overview, practitioners can help clients navi gate a path ensuring their mineral interests are managed well.

ADDITIONAL MAPPING FOR ALL PATHS

Situations do sometimes occur in which valuations are submitted on behalf of applicants that are actu ally higher than what the agency- determined resource value would have been. For this reason, review ing current valuation standards and, if applicable, the relevant U.S. Lease Price Report can be of significant benefit to applicants. Additionally, collection and submis sion of associated documentation should be started as early as pos sible in case challenges in finding information, such as the number of net mineral acres, should arise. Should an applicant disagree with an evaluated mineral interest resource value, they may submit an external valuation or additional documentation for review or, if the valuation negatively impacts their eligibility for benefits, request a fair hearing. the legal description is nec essary for each mineral inter est ( i.e. , leases, deeds, wills, division orders). Copies are often obtainable from the county clerk or online at www.OKCountyRecords.com. Resource valuation is based on royalty production. So even when there is no Form 1099 issued, if royalties were produced, documentation should be obtained and supplied. Royalty owners’ accounts AVOIDING SPEED BUMPS Written documentation of

ABOUT THE AUTHOR

Shannon D. Smith is a former Oklahoma Human Services Medicaid programs analyst responsible for reviewing

mineral interest resource valuations for long-term care applicants. She is an Oklahoma attorney practicing in the area of e-discovery and is currently completing the nine month MIT Professional Education Professional Certificate Program in Digital Transformation. Her recent experience includes work with large-scale litigation involving artificial intelligence, mergers and acquisitions, competition law, international terrorism, government defense contracting and biotech hedge fund arbitration. She also serves as an assistant district attorney for Comanche County for civil matters. ENDNOTES 1. Oklahoma Administrative Code 317:35-5 41.1 (a)(9). 2. Oklahoma Administrative Code 317:35-5 41.12(c)(3). 3. Oklahoma Administrative Code 317:35-5 41.1. (b)(1). 4. Oklahoma Administrative Code 317:35-5 41.12 (c)(3). 5. Oklahoma Administrative Code 317:35-5-41 (6)(b). 6. Oklahoma Administrative Code 317:35-5 41.1 (b)(10)(A). 7. For easy reference, refer to the article “Long Term Care (LTC): Letter to Oil / Gas Company (Mineral Rights).” Available at https://bit.ly/3U6Lxor. 8. A partial list of oil and gas company email addresses can be found at https://bit.ly/3vId85L.

it takes time, but almost always, a response should be obtainable. In unusual circumstances where a company is unreachable, contacting the Oklahoma Corporation Commission for additional information can often be helpful.

CONCLUSION Oklahoma’s history is steeped in stories of families pulled out of hard times – some even catapulted to wealth – through mineral interest ownership. Interests are often passed from generation to generation in hopes that the legacy will someday be a producing well, and mineral interest ownership is not uncommon in our state, even for those with modest resources. Understanding the valuation of mineral interests is crucial for

can go into “suspense” if they fail to cash their checks, meaning the com pany might stop sending the royalty checks. For example, if someone moves, checks

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

52 | MAY 2024

THE OKLAHOMA BAR JOURNAL