After reviewing a recent D.O. I received from Callon and subsequent emails to them, I have not received any plausible explanation as to why the percentage royalty interest has decreased from all earlier payments and the lease terms. They claim there was a patent which changed tract acreage which affected the royalty interest but the timeline provided for that change (May 2019) is not in sync with the check detail. Yesterday I received a check with the lower percentage interest and no further explanation. In the meantime, I have not returned the D.O. What recourse do I have now?
Texas has a lot of tracts which do not yet have patents issued. Title was granted by GLO and the land can be sold. However, the final step of getting a patent requires a survey by a Licensed State Land Surveyor. That sets the exact acreage in the tract. It is not uncommon for a tract or section to be larger or smaller than originally estimated. The survey will be filed in the county deed records which you can access for your records. Or perhaps get from TX General Land Office records. If you post the legal description and county, then someone can help you find it. Here is GLO explanation of process to get patent. https://www.glo.texas.gov/land/land-management/forms/_documents/professional-services/Ins_Patent_Request_Requirements.pdf
I would send a certified letter return receipt asking for the “new” patent documentation for your files and the explanation of the equation that they used to calculate your division order. Ask for the dates of the documentation and why the timeline is not in sync with the checks. Ask for a copy of the paragraph of the Division Order title opinion that pertains to your acreage and why there was a change. If you have differing documentation, then send a copy to them. Occasionally, the wrong tracts are assigned to the wrong people and it takes a while to untangle. Also, if there was a river, it may have changed course and that would need a new survey and would change the acreage.
Thank you very much for your suggestions. I will pursue them.
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