Got a letter from Jay Bee saying they have drilled a well that has included some of my minerals in a pooled unit that I know nothing about, well they say they owe me money and to sign the Division order to receive my checks. Has any one heard anything like this before.
Mike,
I would be VERY concerned if I were in your shoes, something does not sound right. Are you aware of a lease on the parcel in question? Did the lease have a pooling agreement? I strongly suggest you contact an attorney, prior to signing a Division Order to verify if the company had the rights to the minerals, since you are unaware.
I recently came across the following in one of the journals that I subscribe to...
Ritchie Petroleum, Jay-Bee Oil and Gas sued over trespassing claims:
ST. MARYS – A pair of Florida plaintiffs are suing after they say the defendants were unjustly enriched from their trespassing on the plaintiffs' property.
Cobra & Cobra and James and Bozena Rodill filed the suit May 15 in Pleasants Circuit Court against Ritchie Petroleum Corp. and Jay-Bee Oil and Gas, citing unjust enrichment, wrongful taking/conversion, trespass and breach of implied covenant of reasonable production.
According to the complaint, the Rodills purchased 68 acres of land and mineral rights in Lafayette District in Pleasants County in 2006. They did not receive notice of any active oil and gas leases on the property.
On June 25, 2014, the plaintiffs assigned to property to Cobra & Cobra. Because no oil or gas operations or production were taking place on the property and no rental payments were made, the lease terminated on Aug. 7, 2005. Ritchie was assigned the rights under the lease; he then assigned rights to Jay-Bee, the complaint states.
The plaintiffs charge that the defendants have trespassed onto the property and in 2010 began production of oil and gas after the Cobra lease was terminated.
In addition to a trial by jury, the plaintiffs seek to recover punitive damages so as to deter them and others from engaging in similar conduct in the future. They also seek the full value of the oil and gas taken from the property from the time it was purchased until it was assigned to Cobra & Cobra.
And finally, they seek compensatory damages, interest, court costs and attorney fees.
Representing the plaintiffs are James G. Bordas Jr. and Jeremy M. McGraw of Bordas & Bordas of Wheeling. The case has been assigned to Circuit Judge Timothy Sweeney.
Pleasants Circuit Court case number 15-C-19
Thanks very much for the info. I am thinking it may be on property that I have no controlling interest just royalty. All my other minerals is with Statoil this one is on Muddy Creek and I just cant find out much about it.
Great information, Wilson. Good advice to Mr Lough.
Mike,
Controlling interest is a beast of it's own and not an area that I am familiar with. If the DO is standard and does not contain any hidden clauses, I would go ahead and sign it if I was in your shoes.
Wish I could be of more assistance, but good luck with it all.
Fingers crossed for a 'gusher'.
WJ