On August 28, 2019, I called Diamondback Energy questioning if there were any monies due to me on my lease with them for mineral rights in Section 27, Block 48. The person I spoke with, checked my information and found out that, indeed, they were holding money on my lease. I was told they would check into it and contact me back. Bottom line, no one contacted me. After several attempts to get an answer, I was told on Sep 24th that the funds were currently being held in Suspense due to a title issue. I was told on Sep 25th that before the Division Order could be distributed to me, they needed a copy of the will showing I inherited the mineral rights. “In order to be placed into Pay Status which will release the funds in Suspense, they would need a copy of the will.”. I sent them a copy of the probated will on Oct 3rd. On Oct 3rd, they advised that they forwarded the will to the Division Order Analyst.
I have heard nothing back! I have emailed several people I had spoken with and even sent a copy to the CEO of Diamondback Energy, but they still are not responding.
Can anyone advise if there is someone I can contact to report this or will it be necessary for me to hire an attorney in order to get a reply from Diamondback?
I signed the lease with Diamondback in January 2018. I have no idea how long they have been holding payments from me, but I have never received any notification from them. Is this legal for them to withhold my payments?
Thank you for any information you can provide. I am extremely frustrated and cannot believe any reputable company would not respond to legitimate questions.
Pat
Have you filed the probate in Pecos County? This is important to keep your title clear and prevent any excuse that a title issue enables a company to withhold royalties. You should also send a demand letter for payment of the suspended royalties plus interest by certified mail to the landman responsible for the well. There are a number of companies which are not responsive to mineral owners, perhaps under the premise that smaller owners will not hire an attorney and file a lawsuit if necessary. I have not heard that this is a particular problem with Diamondback. Recently, some companies have been laying off employees to reduce costs and the remaining employees have a pretty heavy work burdens. Hopefully you will receive a division order soon.
Thank you for your feedback, TennisDaze. I was surprised that Diamondback is giving me the run around, because I did think it was a reputable company, but even if they have fewer employees, that is no excuse that they have not responded to me for over 2 weeks. I need to find out who the landman is, who is responsible for the well and then I will send me the demand letter.
Look up your well(s) on the RCC to see the date of first production and sales… Keep in mind that they do not have to pay until 120 days after first sales. They are going to focus on the wells that are immediate in the queue and then work on the newer wells as they move up the list. If they are late, you can request payment and any interest due. If there was a cloud on the title, then the interest may be very small.
M_Barnes, thank you for your response. I’m sure you will think this is a stupid question but how do I look up my wells on the RCC? (I don’t know what the RCC is.) Thanks.
RRC Texas website is https://www.rrc.state.tx.us/
Online Research Queries. For well permit, completion reports, production and other information. Print the plat and other information for one or more well files.
RCC is the Texas Railroad Commission. They control not only railroads, but also oil and gas among many other responsibilities.
whether this is applicable for your situation or not, fyi, on the 23, sept, i received this from diamondback owner relations: “Please be advised that we are currently experiencing a high volume of owner inquiries and therefore our resolution time is running between 60-90 days on average. Thank you for your patience.”