Dealing with Operators slow to acknowledge mineral rights

Ownership and Title
1

I have been working to establish mineral rights title in Ward County, Texas for three years. I have supplied all the necessary proofs showing my title. ConocoPhillips was very, very slow in moving forward with a decision. I hired a lawyer, got connected with decision makers at ConocoPhllips, sent letters, sent lawyer letters, called, had the lawyer call and I got three of the four leases correctly titled but getting paid on any of them hung on a technicality waiting for the final lease to be correctly titled. Now the leases have been sold to US Energy Development and I am seemingly back to square one.

Is there some further legal remedy to pursue? I am asking my lawyer. Of course, I am a small owner with limited resources to go to court

R

1 Like
2

You are caught in common problem of many mineral owners. Establishing marketable title is a methodical process, so skipping key issues to get on pay can create significant delays. The OGL, which creates a part of your NRI calculation, is based upon your mineral title. I there is a flaw in the mineral title, then that will causes funds to be suspended pending satisfaction of the title requirements. My experience with Conoco Phillips is they will be on the slower side of processing, but they are reasonable when working through title requirements. Be sure you have hired an attorney who’s practice is focused on resolving these types of matters efficiently.

2 Likes
3

The next development in this saga is that I got US Energy to send me a Division Order for one of the leases. Nothing on the other two leases yet. However, I have received a notice of Intent to File Tax Foreclosure in Reeves County on the first lease which was in my grandmother’s name. I want to go ahead and pay the delinquent taxes in Reeves and Ward County to avoid further interest and penalties. Can I just pay them under my name? Do I need to qualify the payment? I guess the counties only want the money and don’t care who pays? The counties still have this lease in my grandmother’s name.

R

2 Likes
4

You should pay the taxes promptly. Send a copy of the tax statement with the payment so it is properly allocated. The CAD/Tax collector does not care who is paying the amounts due. You can send a letter with the payment notifying them of the change, but a change will not occur until the operator provides updates to the CAD.

1 Like