Hi all, apologies that this is somewhat confusing. I’m at a loss to understand what is happening!
Background: As my dad’s only heir, I inherited a fractional mineral interest in Ector, Upton and Midland counties in Texas. My uncle, my dad’s brother, who had the same fractional interest, was offered a lease by Diamondback. I was not offered one. I tried to reach them a few years ago, and gave up after writing a couple of times. (slightly off topic: Devon also offered my uncle a lease on the same area several years ago and didn’t offer one to me, even though I wrote to them). Since then my uncle’s estate (exact same proportional interest) has been receiving checks from Diamondback (I assume he signed a lease) but I’ve never received anything.
Anyway, last month Diamondback wrote to me that the “FOUR CORNERS” wells in these three counties have reached payout and asked me to sign “Payout Division Orders,” which I returned to them, along with the requested 1099 form and a Direct Deposit form and voided check. So I (reasonably, I think) assumed that I would be receiving funds at some point. This was for specific acreage in Sect. 14, blk 42, and Sect. 23, blk 42. Orders say Interest Type MI, Pay Code SUSPEND, Owner ISQ 01, and Suspense Description: LACK OF TAX ID. I provided the tax ID on the division orders.
TWIST: But now they have sent me a 61-page detailed “Operator Invoice–JIB” asking me to pay them $664 for the month of November. And presumably every month? I’m so confused! If the well has reached payout, shouldn’t they be SENDING me money instead of billing me? Or sending me the net after costs? I’ve searched the internet for days and read this Forum, but can’t find any information or answers on this topic. $624 per month is a lot of money and will add up quickly – what does this mean?
Any light you can shed would be greatly appreciated, or any suggestions where I could turn to understand what is going on.
P.S. One more strange thing – I sold my interests in Crane County (identical decimal interest as in the other three counties) for a very reasonable amount, but learned afterward that there was $23,000 sitting in suspension for me, which went to the purchaser! Was there any way for me to know this in advance? How can I tell if there are similar monies being held in suspense/suspension for me in any of these other three counties? I don’t even know what companies work there or who to ask. I assumed that at some point they’d have to send owed money to Texas as Unclaimed Property, where I could then claim it, but that didn’t happen with whatever company was holding the Crane monies.
Except for the Crane sale, I don’t think I’ve received more than a few hundred dollars a year in the 14 years since my dad passed (mostly from Oxy and Chevron), though it seems my uncle was receiving quite a lot more. I’m pretty sure the $622 owed to Diamondback just for November is more than I’ve received in a single year, ever!
I would be very grateful for any guidance you could offer me. My dad’s estate documents (and his dad’s, from whom he and Snider inherited these interests) have long been filed in all of these counties, in 1988 and 2011 respectively, and my dad had an unusual enough name that he comes right up in a Google search. How can these companies just put money in suspension without making ANY effort to find the owner whose estate (specifically naming those properties) are recorded in the relevant county.
To anyone who managed to get all the way to the end, thank you for your patience and kindness!