Payments for mineral rights

Ownership and Title
1

GREETINGS!

WE HAVE A QUESTION REGARDING PAYMENTS FOR OIL AND GAS THAT HAS ALREADY BEEN

PUMPED FROM LAND THAT WE HAVE THE MINERAL RIGHTS TO WITH SEVERAL OTHER

EXTENDED FAMILY RELATIVES.

THE WELL IN QUESTION WAS DRILLED CLOSE TO FIVE YEARS AGO NOW AND BECAUSE OF AN ERROR AT THE BEGINNING MADE BY EITHER THE LANDMAN OR SOMEONE ELSE, MY IMMEDIATE FAMILY WAS EXCLUDED BECAUSE OUR MOTHER WAS DECEASED. IT SEEMS THAT ONLY MY GRANDMOTHERS LIVING CHILDREN WERE LISTED AS HER HIERS TO HER LAND AND MINERAL RIGHTS IN MOUNTRAIL COUNTY.

UPON DISCOVERING WHAT HAD HAPPENED, IT WAS NECASSARY FOR MY IMMEDIATE FAMILY TO HIRE AN ATTORNEY TO GET THE RIGHTS CORRECTED. THAT HAS BEEN OVER TWO YEARS AGO NOW AND THE PAPER WORK HAS BEEN SIGNED BY THE JUDGE AND FILED WITH BOTH THE COUNTY AS WELL AS THE OIL COMPANY WHICH DRILLED THE WELL.

IT WAS AFTER THE WELL HAD ALREADY BEEN DRILLED THAT WE DISCOVERED THAT WE HAD BEEN LEFT OUT OF THE INHERITANCE. OF COURSE THERE WAS A STORM THAT ERRUPTED OVER THIS OVERSIGHT. AFTER THAT, I MADE CONTACT WITH A REPRESENTATIVE OF THE OIL COMPANY WHO TOLD ME THAT ALL THE PROCEEDS FROM THE NEW OIL WELL WERE IN AN ESCROW ACCOUNT AND WOULD NOT BE PAID UNTIL THE MATTER OF HIERS WAS CORRECTED. THAT HAS BEEN THREE YEARS AGO.

IT SEEMED THAT WHILE THE LANDMAN WAS TRYING TO GET MY IMMEDIATE FAMILY TO ALL SIGN THE AGREEMENT WITH THE OIL COMPANY, THEY WERE CONSTANTLY IN CONTACT WITH US BUT AFTER WE HAD SIGNED THE AGREEMENT, IT I AS THOUGH THEY ARE TRYING EVERYTHING TO AVOID ANY CONTACT WITH US. THE ONLY CONTACT THAT HAS BEEN MADE WAS BY TWO OF US CALLING DIRECTLY INTO THE COMPANY AND EVEN THEN WERE TREATED AS THOUGH WE WERE A PEST. TO US SOMETHING JUST DOES NOT SEEM RIGHT AND WE HAVE TO WONDER WHAT IT IS THAT THE OIL COMPANY DOES NOT WANT TO DISCUSS WITH US. AFTER ALL THAT HAS TAKEN PLACE HERE, WE HAVE TO WONDER IF THERE MIGHT BE A LEGAL REASON THAT THE OIL COMPANY MAY BE TRYING TO AVOID.

SINCE THE PAPER WORK HAS BEEN FILED WITH THE COUNTY AS WELL AS THE OIL COMPANY, WHICH NOW IS OVER A YEAR LATER, WE HAVE BEEN CONTACTING THE OIL COMPANY ASKING QUESTIONS REGARDING OUR PAYMENTS AND THE OIL COMPANY HAS NEVER ONCE GOTTEN BACK TO US. AND THEN THIS WEEKEND, I LEARNED THAT OTHERS WHO ALSO HAVE MINERAL RIGHTS HAVE RECIEVED AT LEAST ONE MONTHLY PAYMENT. WE WERE TOLD THAT WE SHOULD HAVE ALREADY BEEN RECIEVING PAYMENTS FOR OUR SHARE OF THE MINERAL RIGHTS.

TO SAY THE LEAST, WE ARE GETTING FRUSTRATED WITH THE OIL COMPANY AND THE LACK OF COMMUNICATIONS FROM THEM. I WONDER IF IT IS POSSIBLE THAT THE OIL COMPANY HAS MADE A MISTAKE AND RATHER THAN FACE IT ARE TRYING TO IGNORE THE COURTS DECISION IN THIS MATTER? WHY WOULD PAYMENTS BE GETTING PAID TO SOME BUT NOT ALL OF THE MINERAL RIGHT OWNERS? THERE ARE NO LEGAL MATTERS CONCERNING THE RIGHTS THAT ARE IN DISPUTE AT THIS TIME.

ANY SUGGESTIONS WOULD BE GREATLY APPRECIATED,

SINCERELY, CHIP

2

Chip, it sounds like you aren't going to work this out for yourselves. If the lessee/operator won't even talk to you you won't ever get anywhere. I think you need a lawyer. If you have a lawyer send a letter setting forth the facts, and inquiring if there is any legal reason for withholding your royalty, I think they will take you seriously.

3

I too agree that you need to contact a lawyer, specifically one who has experience in oil and gas lease matters and preferably one who practices in the State where your minerals are located. I would be sure to have your paperwork and any other evidence regarding your legal claims to these minerals in order before presenting this to an attorney.

4

Chip, just to make sure there is no misunderstanding, you did have a probate done in ND and the results are filed in the county in which the minerals lie ? A probate in any other state wouldn't necessarily be enough.

5

Hello and thanks for the information. Yes we had the probate done in North Dakota. And it was filed with the recorders office in Mountrail County. And the information was sent on to the oil company. I was going to say which oil company but wasnot sure if that was a good thing to do or not?

So, again Thank You for your information.

Chip

6

Chip, at this point I don't think it matters alot if you named the company, after all; what are they going to do, withhold your money ? How would that differ from what they are doing now ?

Chip Holk said:

Hello and thanks for the information. Yes we had the probate done in North Dakota. And it was filed with the recorders office in Mountrail County. And the information was sent on to the oil company. I was going to say which oil company but wasnot sure if that was a good thing to do or not?

So, again Thank You for your information.

Chip

7

Chip,

It's likely that for the past five years the company paid your Mom's share to others (or possibly to themselves within the working interest share). They're now in the uncomfortable position of either coughing it up (the five year's production) themselves, or recovering it from the others who had received a larger payment incorrectly. This is probably why they are delaying or attempting to ignore the situation. It may also be why they've suspended payment on a newer well (to accumulate enough to cover for past improper payments).

Having been through something similar I know this is a slow and maddening process to get them to act. The others have given you the best advice. You will likely need to bring an oil & gas attorney to get this resolved. 1) Make sure your paperwork is in order and provide the attorney copies of the court order, the document recorded in Mountrail Co (if it was a separate item), and your letters (and emails) to the oil company. 2) Then have the attorney write them requesting why they've failed to pay you. Your alternative is to call or write the oil company every other week for the next four years. So unless your interest is tiny, hire an attorney. Even with a lawyer this may well take all year to resolve. Good luck.

8

Hello Eastern Montana,

Thank you for the advice, I do appreciate your input. I think that getting an attorney is probably what it will have to come to as all of our attempts to make contact have been not answered at all.

Thanks again and have a good day.

9

It is not advisable for any company to ignore orders by the court.You may not only be owed royalties with interest but possibly punitive damages also and legal fees CONTACT AN ATTORNEY ASAP

10

Hello Earl, Thank you for your advice. I appreciate your input.

Chip

Earl Young said:

It is not advisable for any company to ignore orders by the court.You may not only be owed royalties with interest but possibly punitive damages also and legal fees CONTACT AN ATTORNEY ASAP

11

My family also have mineral rights in Mountrail County. I understood that oil companies have to put a certain % of royalties away just for this reason. I thought it was ND Laws. It is hard to get a ND attorney that deals with oil leasing. They are probably out there, but we have never found one that hasent cost us alot of money as has gotten us no where. I would call oil company everyday and have other members call also. We had the same thing happen to us. The oil companies where very happy to have us sign a lease. We didnt know what we were doing at the time, but know we are aware of alot issues that will be corrected as we receive division orders. Not sure what oil company you are dealing with, I would like to know.

Chip Holk said:

Hello Earl, Thank you for your advice. I appreciate your input.

Chip

Earl Young said:

It is not advisable for any company to ignore orders by the court.You may not only be owed royalties with interest but possibly punitive damages also and legal fees CONTACT AN ATTORNEY ASAP

12



Eastern MT said:

Chip,

It's likely that for the past five years the company paid your Mom's share to others (or possibly to themselves within the working interest share). They're now in the uncomfortable position of either coughing it up (the five year's production) themselves, or recovering it from the others who had received a larger payment incorrectly. This is probably why they are delaying or attempting to ignore the situation. It may also be why they've suspended payment on a newer well (to accumulate enough to cover for past improper payments).

Having been through something similar I know this is a slow and maddening process to get them to act. The others have given you the best advice. You will likely need to bring an oil & gas attorney to get this resolved. 1) Make sure your paperwork is in order and provide the attorney copies of the court order, the document recorded in Mountrail Co (if it was a separate item), and your letters (and emails) to the oil company. 2) Then have the attorney write them requesting why they've failed to pay you. Your alternative is to call or write the oil company every other week for the next four years. So unless your interest is tiny, hire an attorney. Even with a lawyer this may well take all year to resolve. Good luck.