Oil well producing since August and still no royalty checks! Please help me understand this!
I have mineral rights on an oil well in Arkansas that has been producing since last August ( stats are on the Commission web site) and still have not received any royalty payments. I was told in November by the operator there was a holdup because one of the heirs holding mineral rights could not be located. After five months I call back and was told the checks were just sitting on the desk but they were waiting on a title opinion. I was told this again last week. Would someone please tell me what a title opinion is? That sounds like something that should have already been taken care of when the leasing took place. I have heard that to hold up royalty payments because one person in the group can't be found is ridiculous because their royalty payments can simply go into an escrow account. 10 months of production and no royalty payments - is this fair?? And of course I have not received a division order yet. Is this typical in this business?
Views: 642
Replies to This Discussion
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Permalink Reply by BirdDawg, plain ole' idiot on
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221,
If YOUR title is good and clear, their is no reason that the company can not go ahead and pay you.
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Permalink Reply by 221caribbean on
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That's what I am thinking and yes my title is good and clear.
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Permalink Reply by j garrett on -
I have interest in a well that has been producing since last April, 2009. I'm told the checks went out last week. Title issues, same reason given to you. Like Baron said, the bright side is that the first check will be a good one. You do have to mail them to request interest on the money. Prime plus 2% I think.
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Do you think it is worth my time to request interest on the money? Do operators typically pay you interest? Why would they unless they were ordered to do so?
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Permalink Reply by Gary on
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I'm curious. What company holds the lease to the property? (I have issue getting the acreage corrected in a Division Order with Chesapeake).
Regards,
Gary
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The company is Ginger Oil but I have heard that they sold it to another company.
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Permalink Reply by edward l. mcgowen, jr on
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I had a similar problem with the pool that I am in. I was told that a dispute between heirs was holding up the payments after 5 months. I suggested that the part of the royalties in dispute be placed in an interest bearing escrow account and that payment to those of us with clear claims be paid and let the heirs duke it out. This was done and our royalty payments have continued uninterrupted.
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Ed - I was told this was what they were going to do but that was a month ago. The months just keep on ticking off.
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Permalink Reply by edward l. mcgowen, jr on
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MaybE you need to bump them again. "It is the squeaking wheel that get the grease and the silent one gets the shaft".
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Permalink Reply by j garrett on
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They will in Texas, but you have to make the request in writing. But, it's worth writing a letter for.
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