Replies to This Discussion

Permalink Reply by dot holloway on April 12, 2012 at 1:52

Part of our problem is we did not catch the difference in the amount until we had signed and sent back the division orders. I do have a call into an attorney but haven't heard back from him. We do have a pipeline that crosses the corner of our property. According to my records we are losing 1.77 acres which may not sound like much but we are losing that much land that has been in the family for many, many years. Don't know how expensive a survey will be but think we may hire our own and go from there. Hope by signing those papers won't cause us to lose our land even if their survey is wrong.

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Permalink Reply by kittycatmama on April 11, 2012 at 3:47

One other thing, Dot, don't sign the division order until you understand fully why you have a reduced decimal. Ask the O&G co. how they determined the new decimal amt. for you. If you are still in question, you need an expert in O&G field--either landman or an attorney to check all the numbers

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Permalink Reply by Spring Branch,mineral owner on April 10, 2012 at 8:16

Look at it this way............you received a lease bonus on someone else's acreage.

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Permalink Reply by robert minton on April 10, 2012 at 13:04

Touche'!

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Permalink Reply by Vernon on April 10, 2012 at 10:26

Two years ago we purchased 304 acres with 50% minerals (Texas).  It was already under lease my the previous owners.  A year ago XTO exercised their 2 year option on the 304 acres and paid us for that amount.  However when we had it surveyed there was actually 311 acres.  They have permitted three wells within a couple of miles of us and I feel like they might drill before their lease runs out in February.  If they end up paying royalties which acreage will be used?  Should we notify them of the error?

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Permalink Reply by Skip Peel - Mineral Consultant on April 10, 2012 at 10:38

Vernon, first file your survey in the county public records if you have not already done so.  Then send a certified copy of the survey and a copy of your lease to XTO by certified mail and request a payment representing the bonus for the 7 additional acres.  Considering how slow XTO moves I would not expect them to cut a check and send it along post haste.  However the more important question here would be royalty payments based on the correct acreage and recording the survey and sending the letter places you in a better position to win that contest.

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Permalink Reply by Vernon on April 11, 2012 at 1:01

Thank you Skip.  The folks on this forum are so helpful.  We amateurs really appreciate your advice.

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Permalink Reply by The_Baron on April 11, 2012 at 3:12

There is a good chance that EOG may not pay the additional bonus, and claim they are covered by the mother hubburd.

 

Although, if they make a well thye will use the correct acreage based on surveys to pay royalty.

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Permalink Reply by Andrew on December 8, 2012 at 11:09

Dot,

Your lease (probably) only covers what property you own. This is because you legally can't lease more property than you actually own. If you leased the property on the belief that it was more acres than it actually turned out to be, then you have, as Spring Branch so aptly put, actually collected a lease bonus on some acres that didn't belong to you. Usually a company won't ask for their lease bonus that they overpaid you to be returned, but anything they pay you in the future (especially royalty) will be based on what you actually own, not what they thought you owned when they leased you.

A caveat to the above - I have seen the rare oil and gas lease that has a provision stating the stipulated acreage amount is presumed to be correct. I have only ever seen these clauses specifically limited to calculation of bonus or rental payments, not royalty. However, properly worded, such a clause in a lease could technically prevent your interest from being diluted.

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