I own interest in several oil wells in Upton County Texas that were seamlessly worked by Concho until January 2017. Concho sold 3/4 of my interest to Chevron, 1/4 to Summit Petroleum. According to Concho the wells have been continuously pumping up until now. But the royalty payments ceased 2 1/2 months ago. Chevron does not return calls nor answer emails. Summit offers excuses but at least answers the phone. I have filed all paperwork in a timely way. I have a relative who also has interest in these wells and she isn't getting royalties either.
How do I proceed, especially since Chevron wont respond to any contact? Is there some agency in Texas that handles complaints such as this? Another approach I should try. I thank any of you who can tell us where to start with this. George
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Dear George,
Have you sent a demand letter to Chevron? I will surmise that they are the Operator. Sometimes, with oil wells, the payment is made by the oil purchaser.
There is protection in the Texas Code. You are entitled to interest and damages. You would want to make that part of your demand. Also, if you have the well name, I will check online at the Railroad Commission to get the API number (that is an unique number that identifies the well) so that when you contact Chevron, you will have a well name and API to solidify your demand.
Best,
Buddy Cotten
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George,
I makes a huge difference in how you approach the problem of non-payment as to whether your "interest" is as a lessor or a well participant. If you interest is as lessor/royalty owner documentation and research into the record of non payment before acting could mean a big payday for you if your minerals are located in most areas of Upton County. At this point, the language in the underlying lease is the keystone to future action. Until you know the lease terms it is best to let sleeping dogs lay. To wake the big dog prematurely may cost you a lot of money in the future.
If on the other gand, your interest is a working interest only, take Buddy's advice and demand that the big dog wake up.
Gary L Hutchinson
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