Continuing the discussion from Caddo 14 9N 9W *:
We have not been paid royalties on the Coleman 1-14 well since Excaliber took over operations. Does that change the validity of the existing lease?
No, the same lease terms apply. Has the new company provided and explanation of why they have not paid? It is possible that they have more stringent title requirements then their predecessor. In any case they will owe interest.
Thank you. I have contacted them and await their reply. I read somewhere on Mineral Rights that the late payment should include 12% interest. Is that correct?
If you title is clear, then 12% usually applies on first payments after first sales. Not sure about this situation. Can’t hurt to ask!
Contact Excaliber and see what they need. Another point to consider is going back and reading your original Division Order. Many of them have a $100 minimum limit on them for payment. That well is a low producing well, so it might be that you need to change the payment minimum to $25 so you get paid more regularly. I do that on low volume wells, so I can keep an eye on them.
That well was sold to Excalibur in 2014. They should have gotten you into pay status by now. Make sure that you send all correspondence by certified return receipt mail so you have documentation. You may have some money built up for that last four-five years, so my $100 comment may not apply here. Time to fuss for sure!
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That should be correct unless there is a title issue.