I inherited mineral rights in 19 different tracts in Lea County, NM, with about 200 cumulative nma. Over the past 30 years I’ve signed maybe 10 leases and received bonus and lease extension payments, but then nothing happens - no notice of any wells drilled, no division orders, nothing. I assumed nothing was ever drilled that produced oil or gas.
Meanwhile, I have been getting small royalty checks from two different companies for years - assumed they were royalties on wells that were drilled and producing before I inherited.
Thanks to this forum (I just started exploring it) I’ve learned about the NMOCD maps and have been checking for wells on the tracts I own an interest in.
My questions:
What things should I be doing to follow-up after a lease is signed? After a well is drilled?
Other than searching the NMOCD maps for activity, is there an easier way to find out about wells where I have mineral rights?
What do I do if I find a well that I’m not being paid for? (one can always hope! )
Since you haven’t gotten a response I’ll give you some generic suggestions that fit Texas and hope folks more familiar with New Mexico will add or correct as needed.
If you have leases you think have expired based on their stated term you can try contacting the lessee and request a release…a notarized document signed by the lessee confirming the lease has expired. Having a release recorded in the Lea County deed records will make anyone checking those records aware your interest is open and again available for lease. Making that kind of request might also help you find out if anything has happened with the lease. You may learn the lease was assigned and the original lessee was no longer involved at the time the term expired.
Unless it was required under the terms of your lease agreement it’s not mandatory that a lessee provide a release, but typically they will if requested by the mineral owner. If your address changed after those leases were signed it might also be logical to record an affidavit in the Lea County deed records showing your current contact information.
If your research in the NMOCD records indicates some of your mineral interest may have been included in a producing unit, a logical step would be trying to contact the unit operator, which also should be shown in those State records. Depending on the size of the operator they may have a Owner Relations Department, or Land Department that would be your starting point. You can also try researching the wells you have been receiving royalties on using the information on your royalty statements or contacting those operators. Try to pin down the source of your interest and confirm you are receiving everything you should.
Excellent hints from Dusty. Also check online for unclaimed funds at the state treasurer’s office for New Mexico and in your state if you live elsewhere.
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