Replies to This Discussion

Permalink Reply by Dion Warr, CPL on July 13, 2010 at 17:21

Thanks, TD.

Permalink Reply by DJG on July 9, 2010 at 10:24

Very good advice. Keep in mind that once you renegotiate a new lease at current market rates, you can always require that you be paid back royalties based upon the date of first production for any wells that you are owed back royalty.

That said, you would not be jeopordizing recieving payment for those back royalties owed by refusing to accept/cash any payments made now from Goodrich.

You do, however, really want to make sure that you don't end up getting grandfathered into some old non-favorable lease terms by taking their $$$ now.

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Permalink Reply by Dion Warr, CPL on July 9, 2010 at 8:28

Erik:

Ooo... wow. Where to begin. You're looking at potentially up to 20 yrs. worth of problems and loose ends to clean up.

Please understand that at some point, it's probably going to be said that you need to hire someone to chase all of this down, because either the timeframe and/or the plot complications to your situation are more than likely going to become fully involved, and you're gonna need a professional or two that are working for you or in your behalf.

First, you're going to need to give a full history. Who owned this property while it was producing and people were getting paid? Did someone die (your father?) or move prior to payments being ceased? If you talked to someone operating the well(s) that said that they owed you money, where's their accounting? Did they escrow the monies, and are still holding it, or did they remit some or much of these monies as unclaimed property to the state?

As far as determining whether other recent production is affecting your interest, you will probably need to have some mineral history and/or production history work done. This would at least give you some important information as to (a) what unit(s) is/are your property in, (b) what well(s) has/have been drilled which affect you, and (c) what operator(s) are involved so that you know who to direct further inquiries as to this issue and who to seek collection of revenues from. The fact that this stretches for so long may make your claim(s) subject to certain time limitations.

Once you figure out who to talk to, you need to make sure that they have everything they need to identify you as a mineral owner (documents and dates first, as it comes down to revenues and notices, names, addresses, and social security numbers). You made need to provide death certificates, heirship affidavits, etc. to assert and substantiate your claims. Also, keep those addresses and contact information up to date.

One tip: once you begin correspondence, I would strongly suggest that you send each piece of correspondence directly to a company contact, certified letter. If not certified, at least by common courier released only by signature. Keep copies of everything and document the full history of your correspondence.

Hopefully, it's not too involved for you, but I fear that it may be. "Beth Longstreet" has a long history, and is in the current fairway.

Good luck to you.

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Permalink Reply by Dion Warr, CPL on July 9, 2010 at 8:31

Oops... This is what I get for writing this before lunch and coming back to it.

Apparently, Skip has some knowledge about dealing with Goodrich to which I am not privy. Either way, the same type of research would be likely necessary, but you may want to take heed of Skip's advice re: acceptance of monies as royalty or revenue payment.

Again, good luck to you.

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Permalink Reply by Erik Backer on July 9, 2010 at 9:42

Dion, Thank you for your post. I'm sure I'm already in over my head. I just want to make sure I do this right and not act in haste. Are these mineral histories available online or am I going to be visiting Caddo Parish again soon?
History: Property has been in the family over 100 years. Passed in 87 from GrandDad to Dad, then from Dad to Mom in 2000 (officially on paper in the court in 2005). Last lease was in the 80's from Falconer Oil but then no payments since early 90's. The Parish has had my address since 2000 for the taxes which are up to date, but other than some lease offers and a million hearing notices from Gordon Arata (for Goodrich) we've received nothing.......
So I should start looking at mineral histories for the property?..........I appreciate your advice and your time!! Thank you, erik

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Permalink Reply by Dion Warr, CPL on July 9, 2010 at 10:51

Erik:

Mineral and production histories are generally commissioned by project. They are (I hate to say never, but) never filed of record. Also, mineral and production history is not researched at the courthouse. The data compiled for these products are obtained from DNR, Office of Conservation. It includes both the analysis of wells and well histories, as well as field orders in the field(s) in which subject property (or prospect area(s)) are located.

Eeeuhhhh.... If you would, send me (gulp) the section, township and range and description of the property, and I'll see if I can assemble something for you... I am not possessed of a whole lot of time at the moment, and if it's extensive, I'll just tell you so. I'm not even in a position to tell you that I have sufficient time to throw to it, even if I was in a position to solicit work, even if GHS allowed for solicitation (which it does not, save for active advertisers), but I should be able to qualitatively assess it for zilch, ie., 'you need somebody to do this for you, it will drive you mad doing it on your own' or 'there are a couple of things here, bring it to your attorney and let him hit this and that.')

I'm saying all this Erik, but if comes down to a bunch of wells, a bunch of production, or high weirdness in dealing with the operator, you're going to want a competent oil and gas attorney with a penchant for forensic oil and gas accounting (if not just access to one) to accurately estimate or calculate what you are owed.

OK, as to your history:

Last leased to Falconer Oil - OK, they very well could be in the operator history if wells were drilled and produced, with royalties paid...

Passed in 87 from Granddad to Dad: Succession filed? Judgment rendered? Timely? Did you stop receiving payments after Granddad passed, or perhaps after they closed the house and/or sold it? Did Dad (or any sibling that maybe 'used to take care of Granddad's stuff') move around the time that you stopped receiving payments?

Dad to Mom in 2000 (official 2005) - this is usually not the cause of 'lost owners', as chances are Mom and Dad lived in the same house, and the addresss is still current, but a possibility.

Another comment: chances are if the 80's lease is still good (which would have to be determined), if the operator lost track of 'you' as an unleased owner, it would be up to the owner of the interest to update them (operators rarely update records after production because mineral owners are generally left to assert their own interest and update the operator as to changes of address, etc., and lessor's contract to provide evidence of same for any change in ownership to be binding on lessor (this clause is standard on most pre-printed lease forms). O&G companies also do not keep researchers bouncing around the courthouse and the assessor's offices (or at this point, doing Whitepages, Google, or Intelius searches) do actively look for and update owner info.

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Permalink Reply by Dion Warr, CPL on July 10, 2010 at 10:33

Erik:

Sorry, I bungled this post... phrase on the second line should read "if the operator lost track of 'you' as a LEASED (royalty) owner, ...". Actually, the statement is correct either way (in that either way it is up to 'you', successor(s), heir(s), or assign(s) to keep your info current) if there are in changes in status, mailing address, or ownership after production commences.

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