Replies to This Discussion

Permalink Reply by Ben Elmore on January 11, 2011 at 3:43

Yes.  Four years, unless you can prove that the error was inherently undiscoverable despite the exercise of reasonable diligence.  However, our wonderful Texas Supreme Court has eroded the protections afforded royalty owners under this rule (as they have done with many other oil and gas rules that used to potect royalty owners). 

Permalink Reply by Jan Childress on January 12, 2011 at 6:54

Thanks for the info. I'm going back to July '06 so we'll see how forthcoming the gas company is going to be. Sent my certified letter to them 1/3/11. Seeking interest too since there's no issue of title.

Permalink Reply by Ben Elmore on January 12, 2011 at 8:16

Good luck!

Permalink Reply by Jan Childress on January 13, 2011 at 4:52

Would love to see the cases that won on "inherently undiscoverable despite the exercise of reasonable diligence".   I'd better do some more research on what action stops the statute of limitations, e.g. phone inquiry, certified letter, filing suit.    Thanks again Ben.

Permalink Reply by Ben Elmore on January 13, 2011 at 13:01

Here is an article I co-authored discussing all the discovery rule cases since 1998 in Texas.

Attachments:

• FINAL Discovery Rule HECI article - 8-19-09.pdf, 150 KB

Permalink Reply by Jan Childress on January 13, 2011 at 20:38

Great article. Thanks Ben. I'll finish reading it tomorrow. ALL royalty owners should read it...a real eye opener. It's difficult to comprehend the depth to which royalty owners must go to protect their interests. 

From what I've read it sounds like my 30-day letter was well-timed.  In March it will be four years since we received our first check although the production started July '06 The DO was signed late Sept '07. I'm assuming the statute would start at the first check.

Thanks again!

 

 

Permalink Reply by Ben Elmore on January 14, 2011 at 4:08

Without knowing any other details, I think the first check would be the date the statute would begin to run.  That would be the date of the first underpayment.

Permalink Reply by Jan Childress on January 14, 2011 at 13:26

That makes the most sense.  Hopefully they will do the right thing and just send all of us our checks within the 30 days...with interest of course. :)  

Permalink Reply by Jan Childress on January 29, 2011 at 18:44

Good news!  Sonerra followed through with a check for underpaid royalties for the past four years...with interest...and within 30 days from my demand letter. Pleasantly surprised!  

Permalink Reply by ben walker on January 30, 2011 at 5:31

Was this on the Lone Wolf lease Jan? Also  can you tell me what a "division order" is?

Permalink Reply by Jan Childress on January 30, 2011 at 17:51

Yes, this was on the Lone Wolf. 

A Division Order is a statement from the payor, in our case Sonerra, that states your Decimal Interest in the Unit on which your royalty payments are based. The Decimal Interest is also on your check stubs from Sonerra.

 

Permalink Reply by Ben Elmore on January 31, 2011 at 3:44

Good for you!

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