I have 2 wells located in Dunn County, ND where XTO is the Operator. First oil/gas sales were in August, 2013. I still have not received a Division Order from them or any payments. I've contacted them several times directly about this & they verified that I DO have royalty interest in the wells. They also said it would be anywhere form 5-9 months "after" first oil sales before I could expect to receive a Division Order/Payments as their legal department had to search. Generic answers. Is there anybody else I can to turn to light a fire under them. My wells are located on T 145, R 95 Section 20, with directional lines running into Section 17, where I own the mineral rights. Any advice would be appreciated. Thanks
I kind of figured as much. I'm also receiving royalty payments on another well in the same area, so I know there isn't a title conflict with these rights.
EPL said:
After the first oil sales, ND law states that royalties are to be paid to interest owners within 150 days or an 18% APR is to be added. This law only applies if there are no title discrepancy's or title conflicts.
The oil company's are actually taking advantage of this law to bide them extra time by actually claiming and creating minor title conflicts and also because they know that 99.9% of mineral owners will not legally challenge the Oil Company league of attorneys for such a small payout. The oil company's are always waiting these days for about 180 days prior to royalty payments. They then send you a one time large check for about 5 months and then they always continue to pay the interest owners at least 1 month behind. Just have to wait is the best answer.
Kay Maas said: My first sales were 08/9/2013 and 08/21/2013. Seems like a long time to me. I haven't had this kind of delay in the past dealing with other oil companies. Just saying. Thanks for the feedback.
I kind of figured as much. I'm also receiving royalty payments on another well in the same area, so I know there isn't a title conflict with these rights.
EPL said:After the first oil sales, ND law states that royalties are to be paid to interest owners within 150 days or an 18% APR is to be added. This law only applies if there are no title discrepancy's or title conflicts.
The oil company's are actually taking advantage of this law to bide them extra time by actually claiming and creating minor title conflicts and also because they know that 99.9% of mineral owners will not legally challenge the Oil Company league of attorneys for such a small payout. The oil company's are always waiting these days for about 180 days prior to royalty payments. They then send you a one time large check for about 5 months and then they always continue to pay the interest owners at least 1 month behind. Just have to wait is the best answer.
Kay,
I don't have anything helpful to offer you other than to say that XTO is an exceptionally evil oil company and you will probably have to light a fire under them to get action. I would start by writing a registered letter to their CEO, enclosing proof of your mineral claim and demanding payment of the royalties plus the interest over 150 days. Good Luck.