Hi Everyone,
What are some of the issues/hardships/downsides, most mineral rights owners face? I imagine that the legal side of things would be the hardest part to deal with. If you could have two of your biggest mineral rights problems solved what would they be? I am very interested to hear the responses, from the mineral owners point of view, or a lawyers point of view dealing with clients. perhaps landmens point of view.
In my view, the two biggest issues are: 1) mineral owners on a tract who fail to band together and negotiate leases together to increase their leverage and reduce their costs; and 2) people who sign agreements without sufficient experience who do not get professional help.
Banding together is an awesome idea!!! That would leverage their power. I at one time worked in the oil field and every once in a while we would hear about land owners who did not read the fine print before they signed. By the way Wade, I’ve read some articles you’ve written on this forum. Thanks for contributing
The biggest problem I've experienced in North Dakota is the difficulty in getting any answers from the oil companies. They always promise to call back and there's a check in the mail. Their ability to lie is beyond compare. Other than that the problems I have had is producing clear title. A lot of research and learning has gone into getting my Grandmother's estate straightened out. It has been well worth the effort, but you can't give up. Also the legal process on all of this is very backed up in North Dakota so, just because I can prove ownership does not mean that I can get clear title. In some cases it has taken over a year.
oh gosh, that sounds like such a hassle! And I thought trying to call the automated system at the DPS to get answers was bad enough. I can’t believe in this year, you still have to go through all that. It should just be a clear, easy , fast answer they give you. Get your check in the mail without them trying to pull a fast one on you.
As Janie Newborg stated, the biggest difficulty I have faced is just getting simple answers. I can't even get a response from Plains Marketing regarding several properties that their Division Order Analysts forgot to include with division orders that I received, signed, and returned a couple of years ago. They now owe me back payment, have told me how much the back payment is and issued a check (but never mailed the check!), and in the process somehow "disappeared" nearly 20% of that money without an explanation. They are now completely ignoring my inquiries into the matter.
Although I take some comfort in knowing that I'm not the only one being completely ignored by the oil companies, mostly XTO Energy in my case, I am sorry you are going through this. If I come up with any creative ideas to reach them, I will pass that along. I do call daily but it is futile at best.
I also have interests with XTO Energy, and I feel for what you are going through as well. It took them nearly 10 years from the death of my father to issue back payments I was owed! Ten years for them to get their act together was a bit much, although I was truly grateful for the money I received. I assume you have all of their contact information? If not, I can look at my statements and provide you with what I have (although I assume you probably have as much info at this point as I do).
One other suggestion I have for the original poster of this thread is to get the contact information for the actual company that is the operator for the properties that you have interests in. I have gotten very prompt and courteous responses when I cut out the middleman and contacted the operators directly.
I agree with Janie! You call to check on the status of a lease, the receptionist acts you just ran over her dog. You call to discuss the DO that you do not understand or want to get information on and they act like you just asked to open the Area 51 files! And NO ONE ever calls you back!
Alicia
XTO is by far the worst I've worked with but they're all bad. RMG is absolutely right, try to cut out the middle man and go directly to the operators. I also make sure I have all my information straight before I call. I subscribe to the web site that gives you the info you need for your wells. I will, however, start contacting the middleman and anyone else involved in the wells when I get frustrated. Sometimes they can get some info. It's just very frustrating.
Biggest issues to me have been 1. Finding the going rates for bonus and percentage in any given area. 2. Finding the right wording to EXCLUDE post production cost in a lease. 3. Finding a way to ban together with other owners. 4. Finding the production of a well so that I have a shot at making sure what they are paying is what they owe. This was a good question. Thanks
I’m reading your posts with great interest. The very low offer I’ve received is not worth the expense of hiring a lawyer.
It seems the common problems are… Lack of communication from operators, and the need for mineral right owners to band together. I am loving the unique answers. Everyone has totally different experiences dispite being similar
I agree with Jamie. I have had problems with three other companies but XTO is the worst by far. Very poor communications between royalty owner and company. What I can explain in 15 minutes takes them years to figure out. Just my two cents.
Just FYI: I actually reached a PERSON at XTO today. Once I got my jaw up off the floor I was actually able to get some answers. I told her (Anna) about the months of issues I've had and that XTO have a very bad rep among royalty owners and she actually seemed interested. She stayed on the phone with me for about 1/2 an hour and I think things may have been taken care of. I am, however, cautious because I've been completely lied to in the past by XTO but I figure, as bad as I have been bashing them, I should report my one good experience. I do have her direct extension if anyone is looking for a real person at XTO.
With all that said, I think we have to find a way for us to band together and not take the bad behavior of the oil companies. I don't know how to do it, but there are enough of us that we should have a voice.
Lets all band together!!!
Janie I really hope that your issues with XTO are being resolved!
Thank you for you RMG. It has taken me 3 years to finally get someone who at least acted like they care. Hopefully she turns out to be the real deal and things will be better.
In my view as a Mineral Owner/Purchaser, the two biggest issues are: 1.) No software specifically designed for Mineral Rights Owners to keep track of Leases, Deeds, Royalty Statements, Division Orders, Production Reports, etc.. (If anyone knows of one please let me know) and 2.) Property Owners who sign an exploratory lease with a gas company without seeking professional help.
I’m with you, Gary, wish there was some kind of software to track leases that didn’t cost a mint. Linton