Hi @M_Barnes, so technically it has been 180 days since well active date (05/30/22 active so 11/26/22 180 days), would you suggest I go ahead and request royalty payment and interest? Or should I wait a few more weeks? The land man sent me a text and said that the attorney had sent the DOTO? to XTO on November 7, so now XTO would need to get input and send DO to everyone. Just don’t know if we need to get written request in now? Thanks for any assistance!
I usually wait at least a month before I fuss on most companies. The reason is that the 180 days does not always line up with the operator’s check cut dates. You might have missed this month’s cycle. My XTO check has a date of 11/25/22, so probably did miss this month if your 180 days is 11/26/22. If not in the next one, then fuss. Many companies go ahead and pay an estimate just in case so they do not have to pay interest if the DO is late. Others do not. Some companies pay the royalties in one check and the interest in a separate one. Be aware that some companies have an error in the 1099 and put the royalty and interest both on the royalty 1099 instead of two separate ones. Just keep an eye open for that. You can go ahead and send a certified letter return receipt now to XTO and request the royalties and interest since it is now late. Keep a copy of everything that you send.
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I would wait until you receive your first royalty check, whenever that is. XTO is very good about automatically adding statutory interest to the first revenue check. Then, if you don’t get the interest, send your certified letter requesting the same.
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