Question Regarding Royalties

Inherited mineral interest to SE1/4 of the SW 1/4 of Section 1, Blk 48, TS 8, of T&P RR Survey in Pecos County, Tx. Received Division Orders for 3 wells producing that are located in the NE 1/4 and NW1/4 of the same section and block. It has been 6 months since I received and returned division orders to PRI Resorced LLC. They are now saying their might be a problem with my ownership and they have their landsman looking into problem. How long a time is reasonable for them to come to a conclusion? Also, given the locations of the wells in the section and my mineral lease in the section, is it likely that my lease is not in the wells assigned pools? I am fairly certain that I have clear ownership of the mineral interests I inherited. Can I be sure that PRI will come back to me with their findings? Not sure what my next steps should be.

If you haven’t seen it here is a link to the drilling permit PRI filed for the most recent horizontal well in that section that crosses the area you described. It shows the unit is covered by a production sharing agreement. http://webapps.rrc.texas.gov/DP/publicQuerySearchAction.do?countyCode=371&apiSeqNo=40187

The documents listed at the bottom of the last page of that permit include a long notifications list indicating you may be part of a large group of potential mineral owners that haven’t been accounted for and may explain the time it is taking PRI to sort things out.

Here is a link to the plat PRI filed with that permit that has the area you described you mineral interest being located in marked as Tract 5 40.41 acres.

Coleman Co. - Sec. 1, Blk 48 TS8.pdf (1.4 MB)

Received, signed, and mailed division orders from PRI for three Wahoo State Project horizontal wells in Feb 2021 and received back notice of their receipt. Now, here we are in late October and no royalty payments from PRI. My last contact with PRI representative in early October was they were waiting for their attorney for a release of payment order. Two of the four wells drilled have been in production for over a year. Looks like there are maybe a large number of royalty owners involved. Is it likely that the delay in royalties being paid dur to identifying the large number of potential owners. Eight months seems a long time. Has anyone received royalty payments for production from these wells as of this date? Not sure what next steps should be since I am new to this business. Should I keep contacting PRI each month or have an attorney contact them?

fwiw, my brother’s company owns minerals in that unit and they have been getting paid on the newest wells (2H, 4H, 5H) since mid-year.

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