We have a lease with XTO Energy which has been making regular royalty payments since late 2011. The most recent month's payment wasn't made and when contacted XTO said the company they sold the crude oil to hadn't paid them yet, so they were not paying the royalty owners until they got paid. Is this kosher / legal?
Mr. Gaffin, if you look at it from the perspective of a lessor, you are in business with them and the only thing you can do is sue them for violation of the contract. This will be costly, and in the end they will almost certainly still have your lease unless payment of royalty was a condition of your lease which contains language that your lease terminates if royalty is not paid in a prescribed timely manner. Not a great deal worth doing until it reaches a large enough sum, probably many tens of thousands of dollars. I hope they pay you within a couple of months.