The problem is we did not know we owned the mineral rights until last month when we started receiving tax bills, so Buddy do you think we will be able to get all the money back for the last few years which is quite a lot judging by the 5 year history on file with the taxes?
Buddy Cotten said:
OK.
You bought some property that was subject to an oil and gas lease. It is the DUTY of the new owner (you) to notify the oil company of a change of ownership. That is in the lease form that your deed was subject to, so it was your duty.
The previous owner received the royalty since the company was not notified. Since they were not notified, the CAD was not notified.
Apparently, (really guessing), is the royalty checks were returned and a landman took a quick look at title and suspended the funds, pending you following the lease terms.
Before you get too upset with the oil company, Lori, it was your job to follow through. The oil company cannot run title every month or so on every producing tract they have to see if any changes have occurred.
The lesson to be learned is that the minerals are yours and they will not manage themselves. It is your duty to you and your future generations to take care of your business.
Best,
Buddy Cotten
Mineral Manager