SOUTH TEXAS LAND OWNERS BEWARE OF THE HUGE ROYALTY PROMISED
I AM FIFTEEN AND THEY HAVE RECENTLY DRILLED A OIL WELL ON MY FAMILY'S LAND. I DONT WANT TO SAY WHERE FOR NOW. MY SWEET GRANDMOTHER OWNS THE LAND. SHE IS 80.
MY DAD SAID THE COMPANY PROMISED 1/5 - 20% OF ALL OIL PRODUCED - THAT MONEY WOULD COME TO MY GRANNY.
THEY HAVE BEEN HAULING TRUCKS OF OIL OUT OF HERE FOR A MONTH OR MORE. BUT MY GRANDMOTHER HAS NO PAYMENTS SO FAR AND CANT GET ANY INFO FROM THE COMPANY EXCEPT THEY WANT TO DRILL ANOTHER WELL RIGHT AWAY. WHEN SHE SUGGESTED THEY WAIT UNTIL THE CHECK STUFF IS IRONED OUT, THEY SAID NO AND WOULD GET A COURT TO FORCE US TO LET THEM IN TO DRILL.
THEY CANT SEEM TO GET THE DIVISION ORDER DONE. DAD THINKS THEY HAVE DONE IT AND WONT TELL US WE GET 2% INSTEAD OF 20%. I SEE GRANS FACE AS THE OIL ROLLS OUT AND THE MONEY DOESNT COME BACK AS THEY SAID IT WOULD. I DONT SEE HOW THIS COMPANY CAN OPERATE LIKE THIS. CAN THEY REALLY FORCE US OFF OUR LAND SO THEY CAN DRILL?
:)
TECHIE FARMGIRL
DADS INPUT - LAND OWNERS BE AWARE OF THESE TACTICS - FIRMS WILL OFFER YOU A 1/5 ROYALTY AND TELL YOU YOU GET IT ALL! AND IT MEANS NOTHING - BUT SOMEWHERE AWAY FROM THE ROYALTY PARAGRAPH THERE IS THIS LITTLE SECRET -
'ALL ROYALTYS WILL BE PAID FROM THIS LEASE AGREEMENT'.
SO THEY GET 80% NO MATTER WHAT. THEIR PART IS NEVER DIMINISHED, YOURS IS.
AND THEY DONT TELL YOU THAT.
THEY BURY THE PART ABOUT IN A DIFFERENT PLACE IN THE AGREEMENT. MINE WAS IN A SECTION UNRELATED TO ROYALTY.
FORCE THEM TO TAKE ALL OTHER ROYALTIES FROM THE COMPANIES 80% INSTEAD OF YOUR 20%.
IM TELLING YOU THIS BECAUSE OF MY MOTHERNLAWS RECENT EXPERIENCE AND THE MISINFORMATION AND MISREPRESENTATION SHE WAS TOLD.. SHE TOOK A SMALLER BONUS AMOUNT TO GET THE 20% ROYALTY PAYMENT AND A COMMITMENT TO DRILL. THEY DID AND ARE HAULING ALOT OIL OFF HER PLACE
HER 20% IS NOW 'SIGNIFICANTLY LESS' ACCORDING TO THE DRILLERS DIV ORDER WHICH WE CANT GET TO SEE UNTIL 120 DAYS AFTER PRODUCTION. IT COULD BE 15 OR IT COULD BE ZERO. OTHER RI'S TAKE PRECEDENCE ANDS SHE COULD END UP WITH ALL THE ROYATIES GOING TO OTHER PEOPLE AND NONE TO HER.
THEY HAVE TAKEN OVER $1 MILLION IN OIL OFF HER LAND, AND SHE DOES NOT HAVE A DIME OF IT. AND MAY NEVER SEE IT
WHEN WE ATTEMPTED TO DISCUSS IT WE WERE TOLD GET A LAWYER. NOT MANY AS THEY ARE EMPLOYED BY THE FIRMS TO QUELL LANDOWNER ANGER BY INTIMIDATION.
IMTIMIDATED IS NOT THE WAY I WOULD DESCRIBE FOLKS WHERE SHE LIVES. SHE IS NOT AFRAID TO CONFRONT THEM. AND THEY SHOW SUCH DISRESPECT FOR HER AND THE LAND...
AND YOU WONDER WHY THIS INDUSTRY HAS THE REPUTATION THAT IT DOES...AND HOW THIS COMPANY CAN FACE THEMSELVES IN THE MIRROR.
SUGGESTIONS BESIDES GET A LAWYER?
Tags: ALERT, LANDOWNER, ROYALTY
Views: 309
Replies to This Discussion
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Permalink Reply by Jan Childress on -
Our experience was:
July 2006 - First month of production
Dec 2006 - First check we received included Dec '06 and "suspense release" for July to Nov
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Permalink Reply by NA on
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Are there any reservations in the title of your property? I am guessing if the lease says royalty of 20% and your property consist of the entire unit and you aren't getting the 20% royalty then your property is burdened by a NPRI.
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burdened by an NPRI, can you explain? I assume this is an non participating royalty interest?
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i need an oil and gas attorney who specializes in LaSallr county..pm me
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you must have leased to some folks from Laredo? first name starts with D???
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If the lease says 20% royalty and there are NPRI... what % goes to NPRI? I have NPRI (not on this land) but don't know how they figure these things out.
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Permalink Reply by Skip Peel - Mineral Consultant on -
NPRI's only apply for those mineral owners who have conveyed (sold) them from their royalty interests. If you have, you should know the fractional interest sold. If you have not, they are not deducted from your royalty revenue and you still receive 20% on your proportional interest in the well or unit.
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Permalink Reply by Polly Ann Foote on
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It may be that royalty had already been sold or deeded away before the land was acquired, and it is difficult to find this out until a title opinion is done. In the fifties and sixties you could ask a landman and many times they knew. That is no longer the case. During the depression when few had money, my grandfather paid and was paid for legal services with a few acres of royalty and I do mean few, somethimes less than an acre.
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Permalink Reply by Tyler Maughan on
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Since, you are not willing to disclose the location of your property my comment is going to be somewhat speculative. You mentioned truck after truck loading oil; I would venture a guess that those trucks may be moving water from the flow back (and/or formation water). Also, my advise is to sit tight and wait for that first royalty check. There is no sense spending money on a lawyer right now be patient. If your grandmother is the only Mineral Owner in the well she will get 20% of the well. If she is not then she will get 20% of her acreage position. ex. if she has 500 acres in a 640 acre unit then she owned .87% of the minerals in the unit 20% of this is 15% of the total well. I hope this helps.
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Thanks for your input. It is oil they are moving as I talked with one of the truckers. I will consider your advice on patience.
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In conclusion - here is the results of the 20% royalty story. It ended well if you are the oil company, but the landowner fared poorly and will continue to do so for the rest of the grandmothers life. there will be no nest egg for the grandkids. The land is trashed and will not be remediated.
SO BEWARE LANDOWNERS....AND THE OIL FOLKS WONDER WHY LANDOWNERS ARE SUSPICIOUS? THEY HAVE GOOD REASON TO BE. THERE ARE THIEVES AMONG US. NOW HERE IS MY SERMON (REVISED)
My patience (and my mother-in-laws) have been rewarded!!!
The oil firm which promised us 20% has determined she get less than 1%. So for $1 million of oil they remove, sell and report - She get less than $1000. Wow they are great businessmen - they got thier 80% so they don't care about paying us the 20% they promised my mother-in-law. I hope they are proud of themselves...I trusted these people because they are/were Aggies - Texas Aggies dont lie cheat or steal, nor tolerate those who do.
Other rewards and BENEFITS
Paying an attorney to complete an independent title opinion.
Well and surface damage. estimated damage is 20X what they say it is (and what they pay her for).
Verbal abuse.
Threats of lawsuits if we persisted in asking questions.
Delayed and incorrect royalty payments - four months late.
More lawyer fees ahead as this escalates - and it will.
Being locked into a lease agreement forever as long as they have production.Now the underreporting of the amount of oil produced....They have reported less than half of production to RRC. I assume they report it produced from other wells they own and pay lower royalties or pay themselves - If they report it at all.
Next stop for me - the Attorney Generals office, Comptrollers office, and visit with a Texas Ranger friend of mine. I consider this underreporting act criminal. Others see it a clerical error that the "firm will correct eventually."
I doubt I am the only landowner in this situation, and would appreciate any advice on where to get help. And I am committed to helping other landowners who find themselves in similar situations.
god bless Texas..
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