Available Actions for Mineral Rights Owner in Texas, When Producer Is Not Paying Royalty?

Law & Legal
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A. Our family owns approximately 24% of mineral rights in a half section in Howard County, Texas for which a producing well came in approximately 10 months ago, but we have not received a division order nor royalty payments; the producer does not return calls or reply to letters, and “the key people” are never in when we call.

Short of hiring an attorney, what are our options? A complaint to the county district attorney, or a complaint to the Texas Railroad Commission (if so, how?), or other?

B. Our family owns 2.5% of mineral rights to a well which has been continuously producing since 1985 in Stephens County, Texas. The initial division order was fraudulently prepared to exclude our family after our family representative refused to lease. I became aware of the well and of the fraudulent division order, etc, in 2010. The current producer, after deed and related document research, initiated royalty payments and has paid back-royalty to the date of their purchase, but indicated the prior operator was responsible for royalties preceding the current operator’s acquisition of the well. However, the prior producer does not return calls or reply to letters, and “the key people” are never in when we call.

Short of hiring an attorney, what are our options? A complaint to the county district attorney, or a complaint to the Texas Railroad Commission (if so, how?), or other? In particular, what if any “statute of limitation” applies?

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Dear Mr. Hamilton,

In question A, is all of your family under lease to the operator?

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None of our family. The family to which my grandmother in 1939 sold 25% and the executive rights leased to the operator, giving the impression they were sole owners. When I learned there was a well being drilled, I contacted the operator and explained the matter. I then sent copies of deeds and sales contracts, probated wills, etc. with listing of all the official county recordings. In a few weeks my mother and aunt received a lease contract to sign; also contracts were received for my uncle who died in 1977 and for my grandmother who died in 1981…the company obviously ignored the details of the materials I had sent and performed their own, but incomplete, records check. My mother and aunt did not sign since the ownership % were incorrect. Again sent detailed deed and probated will info, but since then our letters and phone calls are unanswered.

Don’t want to hire a lawyer unless that is the only recourse.

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Mr. Hamilton,

Sadly, I think that is your wisest recourse.