Does anyone have experience with NPRI?
I am very well experienced. How can I help?
I have almost all of the title info. on my property so I will try to make this short. I leased 11.725 acres to Chesapeake (2006) for 25% royalty and have the property split between two units (6.27 on one and 5.56 on the other). There is an NPRI on 11.5 acres. I have been getting paid on the 6.27 acres since September 2008 at 18.75% royalty. The other unit is paying at 12.5%. The NPRI states " one half of the usual 1/8" . I can’t as of today get any help from Chesapeake. My wife did make contact with the CEO’s executive assistant today, so we will see what comes out of that. Where should I go from here?
Mr. Holland,
If I were to take a WILD guess, it would make sense based on what you told me that a Division Order Title Opinion was rendered by two different attorneys in probably the same firm, or else the attorney made a mistake on the 5.56 acre tract OR the Division Order Analyst with CHK made a goof.
One half of the usual 1/8th royalty is a 1/16 NPRI. It appears that under the 5.56 acre tract, the examiner credited the NPRI owner as having a 1/2 of the lease royalty, but got it right on the 6.27 acre tract.
The first place to look is at your lease form. Do you have any provisions that provide for dispute resolution?
The next thing that I would do is to demand a look at both Division Order Title Opinions. In my lease form, upon request, the operator must send to me a copy of any title opinions rendered.
If you did execute a Division Order, is the interest credited in the Division Order what you are being paid on?
A curiosity on my part is are your tracts a drillsite tract?
My business (not legal) advice is to rescind the division order on the wrong interest and send to CHK a division order correcting the interest and demand to be paid on that interest as of date of first production.
It is important to make the demand, so that the Texas statutes on the payment of royalty can begin working for you.
Let us know how it works out for you.
Jack R. Holland Jr. said:
I have almost all of the title info. on my property so I will try to make this short. I leased 11.725 acres to Chesapeake (2006) for 25% royalty and have the property split between two units (6.27 on one and 5.56 on the other). There is an NPRI on 11.5 acres. I have been getting paid on the 6.27 acres since September 2008 at 18.75% royalty. The other unit is paying at 12.5%. The NPRI states " one half of the usual 1/8" . I can’t as of today get any help from Chesapeake. My wife did make contact with the CEO’s executive assistant today, so we will see what comes out of that. Where should I go from here?
Yes if you are referring to Non Producing Royalty Interest.
What is a Non Producing Royalty Interest? That is a foreign term to me.
My Bad! I meant to say Non Participating Royalty Interest.
Buddy Cotten said:
What is a Non Producing Royalty Interest? That is a foreign term to me.
Buddy Cotten
www.cottenoilproperties.com
My Bad! I meant to say Non Participatig Royalty Interest. However, if youhave a royalty interest on a lease that has yet to be drilled and/or produced in could be a non producing royalty interest I suppose.
W. Howard Pritchartt III said:
My Bad! I meant to say Non Participating Royalty Interest.
Buddy Cotten said:What is a Non Producing Royalty Interest? That is a foreign term to me.
Buddy Cotten
www.cottenoilproperties.com