Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 27, 2011 at 14:55

No.  You have to have a royalty or mineral interest evidenced by a conveyance instrument in the public record.

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Oil & Gas ProPermalink Reply by The_Baron on October 28, 2011 at 5:09

are you refereing to a demand letter?

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landownerPermalink Reply by T. Rash on October 28, 2011 at 14:35

The person I spoke with at Shell called it a letter of entitlement to have them release royalty payment. She told me to state my owner number, name of well and parish. I have never heard of this, but there is a well in my section and I have not received division orders.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 28, 2011 at 14:39

Do you have an owner number?  Do you have a lease?  You are not providing sufficient detail which makes it hard for us to answer your question.

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landownerPermalink Reply by T. Rash on October 28, 2011 at 15:09

Yes,  I have a lease for royalties. When I called Shell inquiring why I have not received division order on this well, I was told to write a letter of entitlement requesting payment of royalties. She said I should state,the well (Hennign 1-1h), property number,Red River Parish.It is to be sent to the Royalty Association, P.O.Box 576, Houston, Texas 77001-0576, attention: Margaret Predmore. I have received payment on another well without any problems so this is all new to me.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 28, 2011 at 15:42

Sounds like a demand letter to me.  Never heard the term entitlement used before.  It may be what Shell calls it but it isn't widely called that by other operators as far as I know.  I suggest you send it certified and keep a copy.

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Permalink Reply by penelope kothmann on October 28, 2011 at 15:49

Is there a certain form you should follow in a demand letter. Is there a example some where I could find.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 28, 2011 at 16:10

Check the archives and search using the key words, demand letter.  Just click on "View All" at the bottom of the discussions on the Main Page.

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landownerPermalink Reply by T. Rash on October 28, 2011 at 15:51

Thanks. Does a demand letter contain the same information that I listed above? Does this happen very often?

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 28, 2011 at 16:09

Yes.  It's not unusual.  However Louisiana mineral law does not require a lessor to execute a Division Order to receive royalty.  Include a copy of your lease with the demand letter.

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