Sherry, I made your comment a discussion topic to make it easier to have all replies and comments related to your question in one place.

 

Texas Mineral Rights..A landman contacted us in La about purchasing each of our parts of 12 acres. Actually they were wanting us to give up our mineral rights. No one agreed to all this because we did not know the land even existed or that it was a part of 124 acres that the owner???? leased out. He pd back taxes and says he owns the surface and all of us own the mineral rights on the 12 acres which is part of the 124. There was a lot of research to be done being we were mislead through the landmans letter to all of us. The land was not the issue the MIN RIGHTS were the issue. After a trip to Center Tex there was a well in the middle of our 12 acres. According to the RRc the horizontal well is on our 12 and 2 more wells further down. We contacted the landman, the owner and the well company. We were told no one wanted to sell. And no one told us anything about the wells. The drilling co said the well had been producing since Oct 2010 but no Royalties had been paid because they cannot get  a clear title. The owner told us we own the Mr and he owns the surface??? Yet we all have warranty deeds they wanted us to sign buying the surface from us. When finally they admitted we all own the Min Rights on that 12 acres. The land owners lawyer told us if we did not want to accept their offer to contact the drilling co. And we did. The drill co said they were so far behind. They would contact eventually with their own landman and we could provide proof of heirship. Now we do not know the Laws on MR in Texas. The landman said he would assure us there was money going in an acct for us somewhere. We would like to know what we should do next without having to hire an attorney. How do we know what this well is producing? How do we know all of this was leased legally, being the land owner turned in he was total owner of this acreage to lease it out yet they tried to buy it from us. Would we get paid on the royalties just on the 12 or for what ever is producing in that section leased? Should we do anything before or just wait on the Co. We have called the Royalty dept several times and they tell us the same thing. Working on a clear title. We need to know what this well is pumping?And where the money is what we have to do. Is there a time limit.

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I may be missing something, but I will do my best to provide you some info.

If you have the name of the well and operator, you can locate production history for the well on the Railroad Commission website following this link http://webapps.rrc.state.tx.us/PDQ/generalReportAction.do.  Just follow the prompts and fill in the fields.

If you are saying that you own the minerals and leasing rights to those 12 mineral acres, then it sounds like you are unleased, and if the well is located on youor 12 acres, you are entitled to your proportionate share of production from the well after the operator recoups its expenses of drilling and completing the well. 

If someone else owns the leasing rights to your 12 acres, such as the owner of the minerals under the other portion of the 124, and all you own is what's called a non-participating mineral interest, then that person can execute a lease covering your 12 acres.  The operator then must account to you for your share of bonus and royalties.  If all you own is a non-participating royalty interest, then you are only entitled to your share of royalty from the well based on the royalty fraction in the lease.  In both of these instances, your royalty is based on the fraction negotiated in the lease.  If your 12 acres is part of a larger unit, e.g., a 640 acre unit, you will get your royalty fraction of 12/640ths.

If you own the minerals, the company will hold royalties earmarked for your interest in a suspense account until they clear title. 

It sounds like you would benefit from hiring a landman to get the documentation from public records to prove your chain of title.

 

Thank you. That is what we needed to know. We just wondered what standard procedure was. this is all new to us. And the landowners lawyer told us to go to the driling co. Yes I do know the drilling co name and the well no and the survey name. I sent off for the original deed but I still do not see anything about MR. The owner told me our family owned them for ever?

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