I own an undivided interest in three different Section in Reeves County, The deed was recorded in September 1981. Language is as follows Section XXXXXX- An undivided fraction of the usual 1/8 land owners royalty in oil, gas and all other minerals being equivalent to fraction of gross production and equivalent to undivided XXX royalty acres. I receive royalty payments since 2013 in one section that is based on more than and 1/8 There are two horizontal Wolfcamp wells in that section. Another Section has two marginal verticle wells and my interest here is based on and 1/8.
As to the other section there has been ten horizontal wells drilled and place on production back in 9/1/202. I have executed the division order with a cover letter that states leave my royalties due unless XYZ pays interest on proceeds due me. In RED BOLD LETTERS LEAVE ME SUSPENSE. I probably should have not sign the DO. L POWELL THE word “usual” tells me what back in the day 1/8 was common I would guess. As this was an Ellenbuger deep gas play. One shallow oil wells were here in the day I assume Yates, San Andres. I do not know I I am a PE from Texas Tech but have lived in Oklahoma City since May 1979
Don’t sign the division order till you have more info. I suggest calling Wade Caldwell, attorney, 210-228-3617. He will likely pay for himself. Hope you have a gusher!
You should confirm the royalty decimal on the division order and then sign and send it in. If the decimal is incorrect, then send a letter and division order with correct decimal. There is no benefit to you for refusing to accept royalties. Issue of whether interest is due would only apply to unpaid royalties before the D.O. was sent to you and not to future royalties. Also, the oil company may send your unpaid royalties to State of Texas and you will have to go through the process of claiming by proving ownership.
This topic was automatically closed after 90 days. New replies are no longer allowed.