LAWRENCE D. BRUDY & ASSOCIATES, INC. Attorneys at Law “Your Energy Firm in the Natural Gas Age ”
Fall 2012
Appalachian Basin Law Firm Lawrence D. Brudy & Associates, Inc. is a regionally positioned Appalachian Basin law firm with lawyers licensed in Pennsylvania, New York, Ohio, Virginia and West Virginia. The Firm is comprised of Attorneys, Certified Public Accountants, Paralegals, Legal Assistants, Title Examiners, Licensed Title Insurance Agents, Real Estate Brokers, Marketing and Public Relations Personnel, with a collective 100 years of Energy, Real Property, Litigation, Business and Tax Experience.
New York
Pennsylvania Ohio West Virginia
Virginia
OIL & GAS ROYALTIES—UNRELATED BUSINESS INCOME FOR NON PROFITS According to current regulations, beginning with the 2008 tax year, nearly all tax exempt organizations are required to file an annual return with the IRS. Pursuant to this rule, if the required forms are not filed timely for 3 consecutive years the IRS can automatically revoke the organizations’ tax except status. Therefore, it is crucial that all nonprofits understand the fundamental rules surrounding their exemption. Contrary to popular belief, achieving tax-exempt status is simply the first step. Once such status has been established by an organization, it is imperative that the proper checks be implemented in order to ensure that ongoing compliance obligations can be adequately met. Further, it is important to realize that certain activities as well as income therefrom can jeopardize an organization’s taxexempt status or even subject it to penalties. In particular, due to the newly acquired wealth resulting from oil and gas leases that include bonus and royalty payments, IRS specific tax rules classify such income as unrelated business taxable income (UBTI). The effect such rules can have on the tax-exempt status for organizations must be adequately ascertained in order to avoid both penalties and payment of unnecessary taxes. For example, many social clubs have a nonprofit tax exemption since their main purposes are to provide social and recreational activities. Accordingly, tax law requires that the clubs’ income be derived exclusively from members, if that is not, clubs are subject to unrelated business taxable income (UBTI). (Continued on page 6) Energy (PA • NY • OH • VA • WV)
Real Estate
Estate Planning
Business / Tax / Accounting
• Certified Title Opinions
• Commercial / Residential
• Estate Administration - Probate
• Formation
• Oil & Gas • Coal • Mineral
• Purchase / Sales
• Planning - Wills, POAs & Trusts
• Selection
• Oil & Gas Valuations / Sales / Purchases
• Relocation
Litigation
• Individual Tax Return Preparation
• Title Abstracting & Curatives
• Refinance
• Title Curative
• Business Tax Return Preparation
• Litigation
• Title Insurance
• Real Estate Matters
• Quickbooks Controller Services
• Lease Negotiations
• Insurance Disputes
Page 2 Sean H. Bello, Esquire (OH) sbello@ldbassoc.com Lawrence D. Brudy, Esquire (PA) lbrudy@ldbassoc.com Matthew L. Brudy, Marketing Asst. mbrudy@ldbassoc.com
Michael A. Cardamone, Jr., Legal Asst. mcardamone@ldbassoc.com Darcy M. Dayton, Esquire (PA) ddayton@ldbassoc.com Linda M. Eaves, Title Examiner leaves@ldbassoc.com Craig J. Emmert, Esquire (PA) cemmert@ldbassoc.com Jennifer L. Enciso, Esquire (PA) jenciso@ldbassoc.com G. John “Jay” Flemma, Esquire (NY) jflemma@ldbassoc.com Thomas J. Kearn, CPA
Craig J. Emmert Attorney at Law (PA) Craig was born and raised in Sewickley, Pennsylvania. He attended Washington & Jefferson College where he graduated Magna Cum Laude with a Bachelors Degree in Economics and was inducted into the Phi Beta Kappa Society. Mr. Emmert continued his education attending the University of Pittsburgh School of Law earning his Juris Doctor in 2011. Craig is a member of the Energy Practice Group. He resides in Pittsburgh. Tenille R. Pack Title Examiner Assistant Tenille was born and raised in Pittsburgh, Pennsylvania. She attended Kaplan University and graduated with an Associates Degree in Legal Secretarial Science. She is currently pursuing her Bachelors Degree in Legal Studies at Kaplan University. Ms. Pack supports the Energy Practice Group. She resides in the City of Pittsburgh with her daughter. G. John “Jay” Flemma Attorney at Law (NY) Jay was born and raised in Utica, New York. He attended Deerfield Academy in Massachusetts, graduated from Trinity College in Connecticut, earning a BA with honors in History and earned his Juris Doctor from Syracuse University College of Law. Jay represents clients from all across the country in intellectual property, specifically the entertainment industry. He is very involved with the New York State Bar Association. Mr. Flemma's avocation as a golf writer has provided him with numerous opportunities to author articles for several respected golf magazines and websites. Mr. Flemma is a member of the Firm's Energy Practice Group. He resides in Forest Hills, New York.
tkearn@ldbassoc.com Stefanie L. Kelly, Legal Asst. skelly@ldbassoc.com Paula J. Klein, Paralegal pklein@ldbassoc.com David A. Neely, Esquire (PA, WV) dneely@ldbassoc.com
Tenille R. Pack, Title Examiner Asst. tpack@ldbassoc.com Amy E. Peck, Esquire (VA) apeck@ldbassoc.com Linda C. Polley, Marketing lpolley@ldbassoc.com Julie L. Schneck, Paralegal jschneck@ldbassoc.com Robert L. Stasa, Title Examiner rstasa@ldbassoc.com
WILL LOST OIL & GAS BENEFITS, DUE TO DEFECTS IN TITLE, BE THE NEXT WAVE IN TITLE INSURANCE UNDERWRITING? The following scenario plays itself out daily throughout the Appalachian Basin: Landman approaches landowner about leasing sub-surface interests on behalf of an Exploration and Production (E&P) Company for a potentially lucrative signing bonus and royalties. Landowner accepts. A search of the parcel’s property records or chain of title is run at the county courthouse so that an accurate opinion is rendered. Once the landowner’s ownership rights with respect to the sub-surface interests (oil, gas and coal among others) are ascertained, the leasing process moves forward. In some instances, it may be discovered that the oil and/or gas interests were previously conveyed to a third party or were
retained by a prior seller in the course of a past transaction. Yet, in other instances a search of the chain of title may show that while the landowner does in fact own the sub-surface interests, the proposed Lessor does not own fee title to the entire acreage which he/she is purporting to own, and in fact wishing to lease. Such circumstances can be detrimental and quite costly to the landowner if the diminished acreage amount leads the E&P company to decide against proceeding with the lease. Conversely, if the landowner chooses to purchase the subject parcel without the benefit of acquiring a title opinion and a title insurance policy, the potential result could be a total loss of title as to the property acquired. (Continued on page 3)
Page 3 WILL LOST OIL & GAS BENEFITS… (Continued from page 2) Another more frequent scenario involves an owner’s title insurance policy that is already in place when the missing proof of fee ownership as to the total acreage is initially discovered. Also, as a majority of land transactions are made by individuals with the involvement of a purchase money mortgage, it is likely that an owner’s title insurance policy was issued in conjunction with the loan policy that was provided to the lender. In such instances where a landowner is informed that he/she does not own fee title to the entire parcel being considered for leasing by the E&P company, a landowner’s path to pursue a curative resolution can be two-fold: either go back to the seller if a general warranty deed had been given to the buyer/ present landowner at the time of purchase or go back to the title insurance underwriter who issued the owner’s title insurance policy. In the interest of time and cost, the landowner’s “path of least resistance” will most likely be the title insurance underwriter. The title insurance underwriter, once approached by the policyholder regarding the purported acreage shortage will look to determine whether there is a discernable loss suffered by the policyholder which would then substantiate action on the part of the underwriter. In the past, such defect discoveries were commonly made while the property was in the process of being sold or purchased and the prior underwriter could offer to indemnify the current title underwriter that insuring the new purchase without legal action necessarily being undertaken as part of the claims process. However, typically today the opportunity of indemnifying another underwriter is not an alternative because it is the landowner claiming a financial loss if the E&P company chooses not to go forward with accepting the lease based upon a landowner not owning in fee the entire acreage initially represented in the lease negotiations. Ultimately, should the underwriter determine that the incomplete fee ownership on the part
of the policyholder rises to the level of a defect in title, as defined under the terms of the policy and requires a response on behalf of the underwriter, the policy, in most instances, will allow the underwriter to choose from several options in order to remedy. Consequently, the underwriter in an effort to make the policyholder whole under the terms of the policy, and after having confirmed that the chain of title does not account for the landowner’s fee ownership of the entire parcel, either may choose to retain counsel to quiet title in the name of the landowner or to order an appraisal of the subject parcel prior to the issuance to the policyholder of a diminution in value check reflecting that portion of the parcel that the landowner does not presently hold in fee. Following, the landowner could then choose to use those funds to retain his/her own counsel in order to pursue an action to quiet title. The resulting issue concerning the landowner’s loss of a signing bonus and royalties is separate and an additional matter ordinarily addressed under the policy’s Schedule B Exceptions. The oil and gas boom being experienced in the Appalachian Basin is in its infancy, with the effects of lease acquisition, and exploration and development, to be experienced in the coming years in a variety of ways. While the title underwriting industry has recently been addressing claims that have arisen out of the mortgage foreclosure crises of the past few years, title issues related to fee ownership of lands destined for subsurface drilling will undoubtedly become an issue requiring action in the coming future. Note: This article is general in nature, and should not be relied upon to solve individual issues, as there may be unique facts or variations that may result in specific legal advice. In an instance where a landowner believes that a question as to fee ownership regarding a parcel of land may exist, our office should be contacted directly.
Pennsylvania Land Title Association (PLTA) American Association of Professional Landmen (AAPL) Energy & Mineral Law Foundation (EMLF) National Association of Royalty Owners (NARO) Northern Appalachian Landmans Association (NALA) Realtors Association of Metropolitan Pittsburgh (RAMP) Pennsylvania Institute of Certified Public Accountants (PICPA) All Pennsylvania, New York, Ohio, Virginia, and West Virginia State Courts Allegheny County Bar Association United States District Court for the Western District of Pennsylvania United States Court of Appeals for the Third Circuit United States Court of Appeals for the Fourth Circuit United States Court of Appeals for the Sixth Circuit United States Supreme Court United States Tax Court Beaver County Chamber of Commerce Southpointe Chamber of Commerce Wexford / Cranberry Chamber of Commerce Pennsylvania Association of Notaries (PAN) National Association for Realtors (NAR) Beaver County Association of Realtors
Page 4 LAND WARRANTS / PATENTS In the past, real estate transactions typically have involved a sixty year search of the chain of title by the title company issuing the loan and/or owner’s title insurance policy. However, due to the rapid expansion occurring within the natural gas industry, involving exploration and lease acquisition, a different approach is now necessary. In 1859 Colonel Edwin Drake’s first commercial well was drilled in Titusville, Pennsylvania. As a result, beginning in the 1860’s, landowners began transferring subsurface interests separately from surface interests, to third parties; often reserving the remainder to themselves. Consequently, today exploration & production (E&P) companies now require a more exhaustive chain of title search dating back to 1859 or earlier, in order to accurately ascertain the ownership of sub-surface interests. A deed relating back to this time period can often be located within the county land records. However, in some instances such records cannot be located and an effective alternative would be to examine a state’s patent or warrant records. Throughout its history, the United States has acquired land by purchase, war, and treaty agreements with foreign crowns, governments, and the Native American tribes. The granting of such lands, by the government, to an individual or corporation is known as a land patent; the grant of all right and title to a parcel of land. Thus, theoretically, a patent may be been viewed as the supreme title to a piece of land. A patent secures that all evidence of title in existence before its issue date has been authenticated. Accordingly, the land patent became tangible title of the land as defined pursuant to the language and land description of the patent document.
Historical Note: The first official land patent was granted to a John Martin in 1788, which reserved to the United States of America 1/3 interest in all gold, silver, lead and copper. Within the United States, there are two recognized categories of states: State Land States and Public Domain States. State Land States are those in which lands are granted by a Proprietor or by State Government. Such patent files are usually found at state archives and are known to contain areas of property which were granted originally by foreign governments, i.e. England, France, Spain, United Kingdom, Mexico and Russia. Historical Note: William Penn would be an example of a proprietor; as he received the land by King Charles II in 1681, to satisfy a debt the king owed to Penn’s father. Following the Treaty of Paris (1783), certain lands were placed in trust to the United States government, and the U.S. Treasury Department was assigned the responsibility of managing the public records pertaining to said lands. Throughout the years, the U.S. government acquired other land, by the taking of Native American lands, the Louisiana Purchase, and other various acquisitions. All land owned by the federal government is called “Public Domain”. Public Domain States involve instances where land is granted by the Federal Government. The Bureau of Land Management has jurisdiction over public domain land, which is divided into Eastern and Western States. The National Archive tract books for the Eastern States and (which includes the Ohio Archive) are located at the Bureau of Land Management (BLM) which is located in Springfield, Virginia, or online at www.glorecords.blm.gov
Commonwealth of Pennsylvania: Documents associated with early settlement of the Commonwealth can be found in the Pennsylvania Historical and Museum Commission, located in Harrisburg and online at: www.portal.state.pa.us New York State: Documents associated with land conveyances can be found in the State Archives at the Cultural Education Center, in Albany, or at the New York Historical Society in New York, and online at www.archives.nysed.gov Commonwealth of Virginia: Land records can be found in the Virginia State Library, located in Richmond. Patent files are microfilmed and indexed with a searchable index available online at www.lva.virginia.gov State of West Virginia: Records of conveyances prior to the Civil War are found within the Virginia Records, and post Civil War in the West Virginia State Archives, at the Cultural Center in Charleston, and online at www.wvculture.org
Darcy M. Dayton, Esquire and Jennifer L. Enciso, Esquire have passed the Pennsylvania title agent licensing exam on August 3, 2012 and are now licensed Title Insurance Agents in Pennsylvania. The firm’s attorneys are licensed to issue Title Insurance in twenty-six (26) states.
Page 5 ACTION TO QUIET TITLE OR ACTION FOR DECLARATORY JUDGMENT? When choosing a curative action you want to be sure that the action you pursue is the most likely to achieve a successful result, in the most efficient manner. Simply stated, when you need to resolve an issue as to the ownership of property, you are going to choose either an action to quiet title or an action for declaratory judgment --- or perhaps, sometimes a combination of the two. This article will explain in what circumstances you would want to choose a quiet title action over a declaratory judgment action and vice versa. Actions to quiet title in Pennsylvania are governed by the Rules of Civil Procedure (Pa.R.C.P.) 1061 through 1067. An action to quiet title may be brought: 1. In order to compel an adverse party to commence an action in ejectment; 2. In order to determine any right, lien, title or interest in the property, or to determine the validity or discharge of any document effecting title in land; 3. In order to compel an adverse party to record, file, cancel or satisfy of record or admit the validity, invalidity or discharge of any document affecting property title; or 4. In order to obtain possession of land sold at a judicial or tax sale. Before commencing an action to quiet title to determine a party’s right, title or interest to property, a determination must be made as to whether an action in ejectment is appropriate. An action in ejectment may only be brought where the plaintiff is not in possession of the
property. If the plaintiff is in fact in possession of the disputed property, the suit must proceed by way of a quiet title action. For the most part, this would be the situation with an exploration & production (E&P) company. Such company would be in possession of the subsurface by virtue of a lease with the owner of the subsurface interests. For example, because of a missing document in the chain of title or the inability to locate potential heirs, for example, a question arises as to whether or not the subsurface owner had the ability to enter into the lease with the E&P company. Consequently, the solution would be to file an action to quiet title on behalf of the purported owner to determine if there are any others who have an interest in the subsurface lease. However, as stated above, if you do in fact have a document missing from the chain of title or any potential heirs who cannot be located, you will most likely have to file a complaint to quiet title. However, if the dispute arises out of the meaning or construction of an existing document, you can usually have the court decide the issue via a complaint for declaratory judgment. Declaratory judgments are used, among other things, to determine the interpretation, construction or application of a deed, Will, written contract, statute, municipal ordinance or franchise. The construction of a deed or other written contract falls within the sole authority and discretion of the trial judge. A party may demand a jury to determine any questions of fact, but ultimately the judge will determine the validity of the provisions of the written document. A declaratory judgment action is a much more streamlined proceeding than an action to quiet title.
Assume that a dispute has arisen as to the ownership of property, but there is a current recorded deed. Accordingly, one of the aggrieved parties would file a complaint for declaratory judgment, attaching the subject deed to the complaint and asking the court to determine the rights of the various parties based on the court’s interpretation of the deed. The court would then issue a scheduling order setting forth a deadline by which all discovery must be completed. Once discovery has been completed, the respective parties then file motions for summary judgment and briefs in support thereof. Within these motions, the attorneys must set forth both the deposition testimony of the various witnesses in a light most favorable to their party and assert appropriate case law and legal authority in an effort to bolster their position. The court will usually schedule oral argument on the motions for summary judgment and depending on the complexity of the matter, the court will generally issue a decision within thirty days of oral arguments. A landmark example of a declaratory judgment action involving a lease to a gas company is Bailey Petition, 365 Pa. 613 which was decided in 1950. In that case the Pennsylvania Supreme Court was called on to determine exactly what share of the property an E&P company was entitled to based solely on a Will where the testator left his real property to his children, subject to various contingencies. While this is merely a synopsis of when to proceed with an action to quiet title and when to use a declaratory judgment action, it is imperative to remember that every situation needs to be evaluated by a qualified attorney on a case by case basis.
Page 6 OIL & GAS ROYALTIES—UNRELATED BUSINESS INCOME FOR NON PROFITS (Continued from page 1)
Further, oil and gas royalty income is classified as unrelated business taxable income (UBTI). If the gross receipts of such income exceeds 35 percent of the non-profit’s total revenue, the nonprofit status is terminated and a new entity would then be subject to taxes on those receipts. A social club is allowed a one-time exemption for revenue; however, if the club is going to receive continuing annual payments it will lose nonprofit
status. In order to avoid such an unfortunate consequence, many clubs have been appraising subsurface interests and have contracted our firm to establish separate entities to better manage unrelated business taxable income (UBTI) while also maintaining their tax exempt status.
Lawrence D. Brudy & Associates, Inc. is pleased to announce its sponsorship of the Butler Blue Sox, a Prospect League member with the team playing home games at Pullman Park. The firm’s employees, many of them Butler County residents are proud to support the home team.
THE NEW OIL, GAS and MINERAL RIGHTS DISCLOSURE and ADDENDUM Changes to the Pennsylvania Association of Realtors Oil, Gas and Mineral Rights Disclosure Addendum have been made. The new document, renamed “Disclosure and Addendum”, has been revamped to include additional issues and concerns that may arise when negotiating or finalizing an Agreement of Sale, as well as when drafting the Deed in preparation of settlement. Consequently, it is important for the Seller of a property to accurately disclose any knowledge of prior transfers pertaining to subsurface interests. The new addendum expressly allows the Seller to state such. Additionally, the Seller can also elect whether or not to reserve their oil, gas and/or mineral interests. Further, and equally as imperative, the revised Addendum also allows the Buyer to receive the exclusive right to any compensation for surface damages caused by subsurface activities. Regardless of whether the Seller has any knowledge as to the ownership of subsurface interests, the Buyer can choose either to waive an unlimited subsurface examination or to conduct a full investigation in order to
determine the ownership of such rights. Finally, the revised Addendum also governs the time frame in which the Seller must furnish to the Buyer the reservation language that will appear in the Deed as well as the failure to adhere to such time frame which would cause the Seller to be in default of the Agreement of Sale. Every sales agreement should include the new Oil, Gas, and Mineral Rights Disclosure and Addendum, but this document alone will not actually reserve or convey any subsurface interests between the Buyer and Seller after the settlement takes place. Without including the correct language in the new deed the terms negotiated in the Addendum will not be reflected of record. In turn, an exploration and production company receiving a Certified Title Opinion will not be aware of a prior agreement between a buyer and seller and will only refer to the deed in order to negotiate with the party who, of record, owns the subsurface estate. Therefore, it is extremely important that the deed has the correct language in
order to memorialize all agreements between the parties concerning the transfer or reservation of any subsurface interests. Within, the real estate industry, it is more important than ever to not only be aware of the issues that can arise out of a deed being drafted incorrectly, but also to learn how to avoid contributing to the problem. Realtors should properly advise clients and always remember to include the completed addendum. Buyers, Sellers and Realtors with real estate transactions that involve the exception, reservation and/or conveyance of subsurface interests are encouraged to seek counsel to advise and/or prepare the proper documents to reflect the intent of the parties negotiations. The use of the Oil, Gas and Mineral Rights Disclosure and Addendum is not proof of subsurface ownership but simply a part of the negotiations memorialized to reflect the buyers and sellers expectations. For buyers who want conclusive proof that they are to receive subsurface interests, our firm would recommend obtaining a Certified Title Opinion.
Page 7 DEATH—DID YOU PLAN IT? (Continued on page 8) The Firm’s Attorneys and Certified Public Accountants regularly emphasize to our clients the importance of having an updated Last Will and Testament, Durable General & Healthcare Powers of Attorney and Living Will. But what if the client has not followed this advice? Absent the preparation, and location, of the aforementioned documents and other directives, survivors will be left with the following questions and/or tasks: Subsequent to the pronouncement of death, you will need to arrange to have the body transported by the Mortuary. The decedent’s physician, family, friends and employer should be notified as soon as reasonably possible. Locate where the decedent’s “Important Papers” are kept. Specifically, the original Last Will and Testament (Powers of Attorney and Living Wills extinguish at death). Many people keep their original Wills in a bank safety deposit box. Our firm prepares three original Last Will and Testaments, all executed and notarized by the testator. Our recommendation is that the Executor (s) are each provided an original in addition to the testator in the event one is lost, misplaced or unavailable. If the testator does not have a Will, assets, will descend by intestacy.
The “Important Papers” file should provide where investments, checking and savings accounts are held and should include insurance policies, pension information, credit cards, real estate (mortgage), utility information, and computer/ investment passwords. In the event these documents are not readily accessible, the next of kin or fiduciary will need to monitor delivered mail and email. If the decedent was receiving social security or veteran benefits both distributing agencies will need to be contacted to discontinue the same. (www.socialsecurity.gov, 800-772-1213); (www.va.gov, 800-827-1000) Safe Deposit Box access, post death, generally requires Notice to the Department of Revenue in advance of the time of access. Most often when an inventory of a safe deposit box is permitted, the Estate’s executor, attorney for personal representative and bank employee are present and inventory prepared. If funeral arrangements have not been pre-planned by the dece-
Pittsburgh Business Times – Dallas Business Journal – Houston Business Journal names Lawrence D. Brudy, Esquire as one of three hundred industry leaders in the “Who’s Who in Energy.” Lawrence D. Brudy, Esquire provided accredited continuing education on Oil and Gas issues for the Butler County Association of Realtors and for the Educational Development School of Real Estate in 2011 and 2012.
dent, those need to be made. Our Firm suggests those to be made in advance and not to be included (solely) in the Last Will and Testament as this document may not be readily available, i.e stored in safe deposit box or at the attorney’s office. If pets are involved, make arrangements for the care thereof. If the descendent was in the military, contact the branch office to inquire about burial and/or funeral benefits. Death Certificates can be ordered through the funeral home or by contacting the appropriate estate agency. We suggest that twenty death certificates be ordered. (Graph on page 2) If there is an original Last Will and Testament, this document will need to be placed of record in the County Register of Wills office by the Executor named in the Will. In the event a Last Will and Testament has not been prepared or does not provide for a named (living) Executor, an Administrator of the Estate then will be appointed by the Orphan’s Court. Accordingly, the Executor or Administrator will be required to take a fiduciary oath of responsibility to gather, protect and distribute the Estate property; real, personal and mixed. This process is known as Estate Administration.
Gas Business Briefing (qualitynewsfirst@gasbb.com) Pittsburgh Magazine Pittsburgh Quarterly Landman Magazine Butler County Business Matters Mylan Classic Spectator Guide Butler Blue Sox
Page 8 DEATH—DID YOU PLAN IT? (Continued from page 7) In summary, maintaining an “Important Papers” file including all financial, insurance, property, and credit card (debt) information in tandem with the location of the original Last Will and Testament will ease the administrative burden of death and provide the answer to “did you plan it?”.
WHERE TO GET DEATH CERTIFICATES: New York
Vital Records Certification Unit P.O. Box 2602 Albany, NY 12220-2602
Ohio
Ohio Department of Health Vital Statistics www.vitalrec.com/oh P.O. Box 15098 225 Neilston Street Columbus, OH 43216
Pennsylvania Pittsburgh - Division of Vital Records 411 7th Avenue, Suite 360 Pittsburgh, PA 15219-1973 Virginia
www.nyc.gov
(877) 854-4481
www.state.pa.us
(412) 565-5113
VDH, Office of Vital Records and Health www.vdh.state.va.us Statistics P.O. Box 1000 Richmond, VA 23218-1000
West Virginia West Virginia Department of Health and Human Services Vital Registration 350 Capital Street Charleston, WV 25301
The Firm’s Professionals… Prepared over 1,000 Oil, Gas, Coal, and Mineral Certified Title
www.wv.gov
(614) 466-2531
(804) 662-6200
(877) 448-3953
Litigated over the limit weight claims for national midstream
Are licensed Title Insurance Agents in 26 states;
Represented Landowners with over 30,000 acres available for Oil and Gas Leasing;
Represented clients in over 50 jury trials in State and Federal Courts;
Represented Buyers, Sellers & Third Party Vendors in over 10,000 Pennsylvania Real Estate transactions;
Provide Business and Personal Tax Return preparation, QuickBooks reconciliation and traditional controller services;
Prepared hundreds of Estate Plans including Wills, Power of Attorneys, Trusts, Living Wills, State and Federal Inheritance Tax Returns;
Have provided Accredited Continuing Education for Pennsylvania Realtors on behalf of Regional and National Real Estate Companies;
NOTARY SERVICES The firms’ professionals provide Notary Services for Estate, Real Estate, Business and Energy transactions .
Page 9 LOCATING MISSING HEIRS The Energy Practice Group Attorneys licensed in Pennsylvania, Ohio, New York, Virginia and West Virginia, along with the firm’s paraprofessionals and abstracting corps research and examine county courthouse recorders offices; including all deeds of conveyance, general, special, fiduciary, quitclaim, sheriff, treasurer, in lieu of, trusts, mortgages, secured transactions, ejectment, miscellaneous, equity, judgments and liens in the Prothonotary’s office, Treasurer’s office, Tax Claim Bureau and the Orphan’s Court Records in the Register of Wills, all to identify ownership of surface and subsurface interests. In many instances, an abstract of the public records may not provide adequate documentation to evidence ownership of these interests into the early 1800’s. For example, a Last Will and Testament executed by the Testator in 1840,
wherein all real estate was devised to his wife for her natural life, and at her death, with the remainder to his children, and the Will neither identified the names nor the number of children. The subsequent conveyance from “the children” as Grantors to the Grantee fails to identify all of the heirs of Mom and Dad. Our staff begins with verifying the death of Mom. Employing genealogical websites can in most situations, provide a date of death. Obtaining original death certificates however, are generally subject to familial limitations, legal representative of a decedent’s estate, or by power of attorney. Genealogical search websites include obituaries, family trees, death records identifying children and grandchildren. Historical County and Census Bureau sites will provide early settlers, addresses, heads of households, people living in the home and occupations. State Ar-
MAPPING The firm’s Energy and Real Estate Practice Group members are daily given the tasks of identifying acreage and boundaries for tracts of land included in Certified Title Opinions and for residential and commercial purchase/ sales. For Certified Title Opinions, the identification process begins with an examination of county courthouse records starting with the deeds in the chain of title. The subject tract [designated for leasing] is searched back to the early 1800’s before the existence of drilled commercial oil wells to determine the “Common Grantor Tract”. In addition to deeds, estates, and tax cards, tax/farm/historical maps are reviewed for references to ownership, dates, roads and rivers. Deeds, generally, provide a property description using metes and bounds, feet, perches/poles/rods (16.5 ft.), links (.66 feet) and chains (66 feet), or without detail refer-
chives are also a good resource to search for on-line vital records prior to the early 1900’s. Lastly, and most importantly, a careful and comprehensive reading of dates, legal descriptions, signatures, including witnesses, notary acknowledgments and leases in public documents can provide clues in the identification process. The firm’s Certified Title Opinions account for all identifiable heirs in the chain of title, in effect minimizing the client’s investment of additional time and business risk.
ring to monuments, surrounding neighbors or simply as “parcel A of subdivision B.” Estate devises in the 19th century commonly described real property as “the farm where I now reside” and sheriff’s deeds under a writ of fieri facias “as lands of the grantor conveyed to the grantee.” Our firm’s mapping department incorporates all of the information provided in the chain of title in tandem with historical references inter alia to create a “deed plot” of merged and superimposed legal descriptions to identify the subject tract of land. Finally, when the subject tract legal description does not provide for “closure”’ or as requested by the client, we recommend an American Land Title Association (ALTA) survey to identify boundaries, easements, structures and utilities in furtherance of development.
LAWRENCE D. BRUDY & ASSOCIATES, INC. 2500 BROOKTREE ROAD, SUITE 301 WEXFORD, PA 15090
TAX & FINANCIAL PLANNING Year end tax & financial planning can be utilized to manage income taxes, defer income to the following tax year, and/or accelerate deductions into the current year. To take advantage of the 2012 tax laws / rates, proactive planning in many instances is required before year end. The Firm’s Attorneys and Certified Public Accountants are able to work with clients to achieve goals of tax minimization and wealth transfer to family members inter vivos or by testamentary disposition. In 2011 the firm established a strategic cooperative with the Monteverde Group, LLC to address the collective need for financial, tax and estate planning.
Our office is located at: 2500 Brooktree Road Suite 301 Wexford, PA 15090 (724) 935-1400 (724) 935-1415 fax (855) 935-1400 toll free
Lawrence D. Brudy & Associates, Inc. is pleased to announce that Sean H. Bello; Lawrence D. Brudy; Linda M. Eaves; Craig J. Emmert; Stefanie L. Kelly; Paula J. Klein; David A. Neely; Tenille R. Pack; Amy E. Peck; and Julie L. Schneck have all been accepted as members of the American Association of Professional Landmen (AAPL).
www.ldbassoc.com Our website offers easy access to all the areas of our practice and to information for contacting our staff. Our Newsletters are uploaded to the website for easy reading.