Many States have online resources which allow you to see permit/production activity. List the State for more help on this forum. There are also online “pay” sources. You will not be very productive with a contact of this nature with a company.
I was just venturing a clarification of what he was saying. You can negotiate it in your OGL to receive any copies of the title documents supporting their title opinion. Nothing in this world is free, but if they dont have their title opinion organized by mineral owner, thatd be pretty silly on their part. They dont have to furnish it to you unless you negotiated that, but lets not pretend its asking them to move mountains either.
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Lets define the issues. If a company has A in the title, then D comes along and says that they own it (D being an heir of A), then it is the minerals owner’s responsibility under the lease to provide the documents linking the title. The company is not obligated to periodically check to see who has died and who is survived by whom. Many of the questions on this forum come from owners who are inheriting interests from owners two or three generations back.
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Hi, Thanks
In my case, it’s Golden Valley, ND
Steve, DSTO and DOTO are organized by each tract in the unit. Within each tract there is the finding of who is the holder of the various oil and gas rights and whether they are subject to an OGL or other interests. They will also determine any NPRI, ORRI or any other interest derived from the oil and gas rights. Surface issues are also addressed. The DOTO is not an abstract, but is based upon examination of various records which can include abstracts. Division orders are developed from the opinion so it must be well organized. Opinions are expensive. It is my experience they are rarely shared with owners; however, the related title curative requirements may be shared. In some cases, a landman may share a limited chain of title from a takeoff in order to secure an OGL.
So, when is it enough time to get put in pay status? I researched and educated myself over the last year and half that I amaze myself and most others. But here we are with wells that are still not in pay status with interest established, most division orders signed ( except for the few they plan to hold on too until I die LOL) all tax paperwork completed and direct deposits established. How long does the lay person sit and wait? Especially when the “house” landman x 3 all have different stories and lies (yes, they are now lies when it’s over a year later and we are still getting the same story). Attorneys are ridiculously overpriced and mineral management companies just take your money and accomplish nothing extra. Who do you reach out to for guidance?
If its been that long, and everything is indeed in order detail wise, you have cause for action. Check your lease for language regarding how long they have to pay you royalties. Often times they have 6 months from the end of the month of the first sale, and thereafter 60 or 90 days. Most leases stipulate you must notify them in writing (certified mail)and that gives them a specified timeframe (15 days i think) to correct the issue, and then the amount owed starts accruing interest. If you gonto litigation for unpaid royalties and receive a favorable decision, tecas statutes say the oil company must cover any reasonable attorney fees youve incurred in addition to unpaid royalties and interest
@Spunky_dez This can be a frustrating process. Unless you have diverse properties, speaking to 3 different landmen at the same company regarding the issue is a red flag. It sounds as if you have have been going through the process of getting on pay with executing DO’s, W-9 and ACH. Knowing nothing about the interests or the associated revenue makes it difficult to offer much of a suggestion. If you post the County, State, Purchaser, Operator and how you acquired the interests, then this forum may be able to offer some help.
@James_Garner1 we do have an interest in diverse properties in multiple townships/ranges/sections (hence the 3 different landman) but all with the same operator unfortunately. It’s in Eddy County New Mexico. I am unable to note the operator publicly as it will be used against me as to say it will make the process of getting in pay status slower. Yes, you heard that correctly.
Not a problem on the operator; although, in some cases that knowledge will help with the nuances of your problem. Have you tried to work through contacts with JIB/Payout group to establish any new company contacts to get answers on your revenue issues? Are you speaking to owner relations or landmen at the company since there is a difference in their function? Possibly you may get @NMoilboy to offer some suggestions.
If the well has been producing that long, as opposed to when it was initially drilled, then if your interest is in order, you should be paid.
Now, you’ve gone to the company and got nowhere, and you don’t want to hire an attorney, well what can we tell you. You have a physical pain, you’ve taken aspirin, and other remedies, and its not getting better, then the next step is to go to the doctor. At some point, you seek professional help.
I don’t know the story here. DO signed but not in pay status? Some excuses from different landmen. Etc.
Shrug. It all comes down to how much money it is. If its a lot of money, definitely get a lawyer. People will respond to a lawyer.
Sometimes I/we beat on the same people at the same companies for months or longer, usually things get sorted out. The biggest issues are when they used an old opinion, paid the wrong people, and then are dragging it out with you because they don’t want to come clean to their bosses that it’s SNAFU’d and will cost them real money. In that case they will just be like an insurance company and deny your claim the first three times and see if you give up. If you don’t it usually works out.
So I’d say just be persistent and polite, and if you need a bad cop, get an attorney.
This also isn’t really my thing, so grain of salt. I have a friend who handles all this stuff.
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