Hello I am an owner and have a signed lease with Midland-Petro DC Partners. Section 34, Block 39, Township 1 South T&PRR Co survey, Midland Co, Tx Over the years I’ve received numerous updates including a pooling request with the state that was granted. As far as I can tell from documents I’ve received and maps numerous wells were permitted and have been producing. While I have an interest in a 19.023 acres, and this is part of a much larger project in Midland. 2 years ago, Midland-Petro offered to purchase my interest which I declined. I am still waiting to receive division orders. I called Permian Deep Rock royalty relations and was told I would receive division orders over 3 months ago. I called Midland Petro and the rep there reached out to Deep Rock and I received an email stating they are researching the matter. This was well over. month ago. During the last 6 months, all of my calls have been ignored except for the two times I mentioned above. My emails have been ignored. I have been patient all this time, but it seems as if they don’t plan to follow through and simply ignore my owner’s rights and interest. Any help or suggestions would be much appreciated. Robert
First check the county deed records to make sure that Midland-Petro still holds your lease and has not assigned it to another company. Then send a demand letter to your lessee and all operators to get in pay back to the date of first production. Send it by certified mail and enclose a copy of your recorded lease and cite all the well names and API numbers. You may want to consult an oil and gas attorney and have the attorney send the letter or cc the attorney, as this may get more attention. Two potential problems come to mind. First, there may be a title issue that needs to be resolved. Second, your lessee may have gone non-consent in the wells and been having your royalties applied to its share of payout costs. Or the operator may have refused to allow your lessee to participate. In that case the operator and lessee may try to only pay royalties after payout. Look in deed records to see if there is a JOA signed by your lessee with the operator. If the lease is past its primary term and the lessee went non-consent, then ask the attorney if the lease has terminated and you can come in as unleased mineral owner to receive all related revenues. There is case law on this problem and you will be best advised by an oil and gas attorney.
Thank you very much for replying with detailed information. I will get started on your suggestions.
Hello TennisDaze, Just letting you know that the RCC verified that Abstract 520, Midland Co, Texas has numerous wells under it and are producing very well. The wells starting operation in 2020 and now run under my interest. I sent a Certified Mail return-receit letter to both Midland- Petro and Permian Deep Rock today as for an explanation and a response within 10 business days. Hopefully, they will get the message sooner than later so I can avoid hiring a lawyer. R
It looks like I’m going to need an attorney. I would hate to spend a ton of money if my interest is paying out a low amount. Any thoughts? thank you!
It looks like your lease was dated 2017. First question is whether it has expired under the terms due to well dates or failure to pay if lessee did not participate in the well(s). Was it 3 years or 5 years primary or have an optional extension? Second question is whether it was included in assignments out of Midland Petro, possibly to US Energy Development and/or Northern Oil & Gas, whether assigned in full or in part. There are 2 assignments which cover multiple sections (including Section 34) in Twn 1S & 2S (each is 247 pages). This will require an attorney to review all your documents.