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 MLE on -
What does the lease say? Most leases allow for 90 days until royalty payments.
They can't "force you off your land" but, depending on the language of the lease, they can drill on your land.
Also, her amount is less in the division order because her land is probably unitized with other tracts of land.
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Permalink Reply by sgt whitwell on
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from dad - State of Texas says royalties must be paid 120 days after initial production.
the land is not unitized.
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Permalink Reply by FXEF on -
Your Granny does not receive 20% of all oil produced from the unit, unless she owns all the acres in the unit. She will receive 20% of her proportional share of acres in the unit.
Here is how to figure her share of production.
her acres - Acres she owns in the unit.
unit acres - The size of the unit.
% royalty - Royalty as listed in her lease.
her acres / unit acres X % royalty = her decimal interest
her decimal interest X total unit production = her share of production
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sdhe owns all the acreage in the unit. so by your calc..
160/160 x 20% = 20% is her decimal interest.
seems simple to me but not to the oil company.
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Permalink Reply by adubu on
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sgt whitwell--- you said she owns all of the 160 acres of land in the unit, BUT does she own 100% of all the minerals is the question. Also are you sure the o&g operator did not add addition contiguous acres to the unit? If she does own all the minerals in unit yes her decimal should be 0.20 if not it will be less. Please check your mineral title.
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this is an avenue which may help explain it. thanks
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Permalink Reply by Two Dogs, Pirate on
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Some in the oil & gas biz could benefit by taking a Dale Carnagie course in "How to win friends and influence people" or going to charm school.
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good humor.. I will assume this is directed at me and not my daughter....
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Permalink Reply by Two Dogs, Pirate on
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Telling someone to hire an attorney ain't no way to win friends.
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agreed...
thanks...
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HELLOOOOO. THANKS FOR HELPING OUT! ;)
TFG
::::))))
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from dad
the firm taking the oil here is becoming increasingly disrespectful of her workers at her place. she has reported to me of trucks nearly running over her in her car, trucks blocking her access, and being spoken to rudely. (more than one event)
I expect this hostility will not decrease as we question the firm on the royalty questions.
advice?
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