I received written notification from Shell that there has been an ongoing decimal point error in my royalty payments from mineral rights that were sold to Shell from Chesapeake. Shell is blaming Chesapeake for the error and is asking me to repay over $50,000. Until then they have put further royalties in suspense. The amount that needs to be repaid goes back to July 2012. Is there anything I can do to make Shell take responsibility for this error. The mineral rights are in Ward County, Texas.
If Shell is blaming Chesapeake for the error, why don't they ask Chesapeake to pay them the $50,000.00. It isn't your fault. I think I would tell them that you had a right to rely on the accuracy of the division order that you signed, and the right to spend what they sent you. They should have to incur some of the responsibility for hiring incompetent personal, and suffer the loss, not you. Then again, you can always hire a lawyer. You get what you pay for, but that is what I would tell them.
Thank you Dave. Are you a mineral rights lawyer? We have a lawyer but she this is not her specialty.
No, on my Mama's death bed she made me make a promise to her. She said, "Son, before you ever become a mineral rights lawyer, I want you to learn how to play a piano in a cat house."
I respected Mama's wishes.
Here is some more un-legal advice. The unilateral suspension of the royalties would seem to be unconstitutional. They are attempting, or will deprive you of a property right without due process of law. It was their own negligence in dealing with a company who had hired incompetent rental division personal, and now they want you to reimburse them for that negligence, and also suspend future royalty payments without due process, or a legal hearing. There was another question on this site where a land secretary called a royalty owner requesting that money be paid back. I think it also involved Chesapeake. Maybe it is some kind of a scam where the land secretaries and division order analysts are trying to pick up some extra Christmas shopping money, or in your case, buy a new car.
Dave Quincy said:
No, on my Mama's death bed she made me make a promise to her. She said, "Son, before you ever become a mineral rights lawyer, I want you to learn how to play a piano in a cat house."
I respected Mama's wishes.
Read your lease. I have seen some that give them the right to seek reimbursement.
Nothing in the lease about reimbursement. It does say lessee can suspend royalties if there is a title dispute. But the decimal point error was made after the title opinion.
Wade Caldwell said:
Read your lease. I have seen some that give them the right to seek reimbursement.