Company refuses to pay royalties

I gave my son 7 acres several years ago which included mineral rights. There was no lease for oil and gas when I deeded it to him. Eventually, a drilling company approached him and they entered into a lease agreement. Then, due to circumstances beyond his control, he ran into financial problems and he had to sell the property and lease so I bought it from him. At some point the parcel number on the tax ticket had changed. I still dont understand why it changed. Now, the company holding the lease will not recognize me as the property and lease holder nor will they pay the monthly royalty payments until the deed is changed. I don’t want to change the deed because it’s exactly the description on the original deed and lease agreement. Their legal department wont even respond to my attorneys inquiries. I feel the ease is not being honored and due to non payment of royalties, the lease should be considered null and void.

Your attorney should be able to help you get this figured out. If it’s a matter of getting a correction deed done, that’s pretty simple most of the time. The rest of the time it’s a bear. Good luck.

If you bought it back, a new deed needs to be filed in the county courthouse with your son officially passing it over in a new deed with you as the buyer on it. You need an official document of title in order to get paid and you need to send a copy of the new deed to the operator. They do not want to pay the wrong person. The description of the acreage won’t change, but your ownership must be documented properly which is on you to do. As Kyle said, an attorney can do it rather easily (most of the time).

1 Like

I furnished the required documents to them (which is what I purchased). They want a “corrected” deed. The corrected deed they are requesting is not the same deed the lease is connected to. I feel that the property deed and the lease attached should suffice as it is what they were paying my son for. Nothing has changed but maybe the 911 address which has nothing to do with the original lease and the original deed. If the company made a mistake then that’s on them. They stopped payment and communication so I consider the lease to be null and void.

Talk to your attorney. Sounds like it needs some untangling.

This topic was automatically closed after 90 days. New replies are no longer allowed.