Personal Property tax on well in addition to real estate tax on OGM, Producer not paying royalties

Just found out we have four producing wells on OGM in Ritchie County WV. County says we owe personal property tax on the wells that is delinquent since 2007, approx $1000. OGM real estate tax is current and paid. No personal property tax statements have been received. Allstate Energy is listed as the operator of two wells and have not paid royalties in many years to me. They will not return my calls or answer questions about where royalties are going and about the lease terms. The lease dates back approx 100 years, old Hope lease and I do not have a copy. Production reports show current production of both oil and gas and tax statements have been sent to the other owners (we own 1/2 interest). Should I pay the personal property tax on the wells? What do I risk losing if I do not since the operator is not paying me any royalties? What can I do to get the operator to pay up the past due royalties?

Here is a website for the Ritchie County Sheriff's Tax office.

http://ritchie.softwaresystems.com/index.html

Here is the website for the deeds, leases, etc database since 1985

https://www.uslandrecords.com/wvlr/

You have several things that need to be done. I'd say paying the taxes is worth doing. You say taxes on the wells? For production? do you own a working interest?

If you can't get to the courthouse there are ways to get a copy of the old lease but for that time period you need to look in the old index. If you know the name of the person who signed the lease, you can order the copies of the index pages for that name, for a time range. They'll send this, then you can look up the lease book and page number, and order this. I have done this a lot. Getting a copy of the lease is important.

You can contact the WV State Tax Dept, http://www.state.wv.us/taxrev/publications/propertyTax/SpecialPropertiesSection.pdf

And contact someone in the Producing & Reserve Oil and Natural Gas section. I have corresponded with Barbara McClain. Explain your situation. Perhaps there is some advice they can offer. They can tell you what revenue has been reported per well (using the API number) for you the royalty owner (not anyone else). This might help some.

Is it possible that you inherited these wells and somehow the executor of the estate didn't inform Allstate of the change in ownership?

I hope I have not answered a question you already knew the answer to. This is a complicated business, and it helps that these databases are available. Please let me know if I might be able to help some more.



Nancy Mosley said:

Here is a website for the Ritchie County Sheriff's Tax office.

http://ritchie.softwaresystems.com/index.html

Here is the website for the deeds, leases, etc database since 1985

https://www.uslandrecords.com/wvlr/

You have several things that need to be done. I'd say paying the taxes is worth doing. You say taxes on the wells? For production? do you own a working interest?

If you can't get to the courthouse there are ways to get a copy of the old lease but for that time period you need to look in the old index. If you know the name of the person who signed the lease, you can order the copies of the index pages for that name, for a time range. They'll send this, then you can look up the lease book and page number, and order this. I have done this a lot. Getting a copy of the lease is important.

You can contact the WV State Tax Dept, http://www.state.wv.us/taxrev/publications/propertyTax/SpecialPrope...

And contact someone in the Producing & Reserve Oil and Natural Gas section. I have corresponded with Barbara McClain. Explain your situation. Perhaps there is some advice they can offer. They can tell you what revenue has been reported per well (using the API number) for you the royalty owner (not anyone else). This might help some.

Is it possible that you inherited these wells and somehow the executor of the estate didn't inform Allstate of the change in ownership?

I hope I have not answered a question you already knew the answer to. This is a complicated business, and it helps that these databases are available. Please let me know if I might be able to help some more.

Thank you Nancy. Yes, it is possible that Allstate was not aware of the transfer, however I have since made them aware. They claim that when they purchased the leases from Ashland in 1996 that they were not given our name. I provided them with title work showing owership of the OGM corresponding to two of their wells but they said they would have to do their own certified title search and try to find out where our portion of royalities has been being sent. That was a month and a half ago. When I call their office they always tell me that who I need to speak with is not in. I leave a detailed message with my number and they never return my phone calls. Today when I try to reach them, they do not answer. I am begining to feel that they are not being upfront and honest with me about where our royalties have gone. Any advice?

Hi CHS, It could be that the company is understaffed, as seems to be often the case.

You could send a registered letter, one with a return receipt (not sure what the correct category of mail that is). Better yet, have it sent by an attorney.

Other ideas: maybe the WV attorney general's office might help, not sure.

Have you filed a will with the county clerk? Was there a will involved in your inheritance? if so, you probably need to have the executor send the appropriate copy of the will to the company, and to the county clerk. Call and ask for Sandra or the Deputy Clerk who handles probates (1-304-643-2164). If no will, you will need an affidavit of heirship which the Probate clerk can help with. There are things that need to be sent to the state; she can help.

You could ask the Assessor's office about the wells. I think they have a way to see which wells are connected with which property. They might have a record of the last known person listed with that well. I am not sure of this, but they might be able to help. Same phone number as the County Clerk, just a different extension.

There should be someone at the company office who can help you with the lease, but if not, I wrote above about how to get copies of the index pages to look up your ancestor's lease, if you know which ancestor signed it.

Lots to do, for sure! This is a complicated business.

Nancy,

I'm still trying to get a copy of our lease. The partitiion deed from 1915 mentions the lease with Hope Natural Gas. I have ordered and obtained the index pages as you suggested, but I'm not sure where to go from there. I can't tell which one is the one in reference.

There wasn't a will to be filed. Actually there was a property/deed transfer prior to the grandfather's death.

I have sent a registered letter to Allstate and still, no response from them.

I have looked into contacting the attorney general but I'm not sure if they handle this either.

Any other suggestions or ideas for me?

There has been a change in the records system for Ritchie county. Here is a link to what I wrote about it Ritchie records

See if it works.

About trying to figure out from the index pages what is what, do you know which ancestor owned the property in 1915 when the lease was made? Find that last name (ask if there is trouble either downloading the old system records, or finding and using the index, or finding the lease).

Do you have the well numbers, either producer's numbers or API numbers, for the wells?

Allstate may just be the operator, the bonded entity who officially operates the well, and somebody else might be the one who issues checks.

Things can be checked, but several things to do. If you want to get some advice out of the public eye, friend me and I can maybe help you some more.