Since I stumbled onto this forum, I have been diligently trying to educate myself in the murky world of Oil and Gas. To that end I am sure I have just scratched the surface and am once again in need of help.
The issue of royalty revolves around a couple of Wells in Colorado in which we are claiming "past due" royalty money. We don't have executive rights to our minerals so an operator came along and drilled into our minerals, didn't notify us and after 2+ years of production, has agreed to pay us according to a determination of heirship. Normally it seems that folks who receive royalties do so according to the division of interest on a Division Order.
In our case, we will receive our royalty as follows: "Everything will be distributed according to the determination of heirship, even on all new wells".
Each heir, according to ones relationship to the deceased, will receive a split of the royalty money withheld by the operator. The royalty money will be distributed on a percentage basis, such as 4.1667% or some other % number up or down.
My question is how does one line up the numbers to make sense of the payment process? Where is the % applied to the whole? Is ones % split taken against the total royalty withheld or what? BTW...This involves in excess of 373 thousand barrels of oil sold to date.
This is assuming the royalties will be paid after taxes and other costs, according to the lease which we have not seen. Any help will be greatly appreciated. All this makes my head hurt!
Bob
Robert,
If you will friend me I will send you the name of a Minerals Management Company there in Colorado that is familiar with your type of problem. I'm not allowed to give out this type of info on the regular Forum. Seems as though you do have a serious problem that needs to be addressed. Possibly a lot of money involved.
Clint Liles
Clint I haven't a clue as to the process of establishing you as a "friend", I would if I knew how. We do have an Attorney, or will as soon as he gets paid up front. None of this oil stuff is cheap! "Yike". I was hoping someone that has been through this process could share their insight to help clarify it for me before I get to a $200/hr person. I just don't know if we are still attached to the net acre thing, or some other algorithm. None of the calculators have this as an option. Anyway, thanks for the come back Clint.
Bob
Clint Liles said:
Robert,
If you will friend me I will send you the name of a Minerals Management Company there in Colorado that is familiar with your type of problem. I'm not allowed to give out this type of info on the regular Forum. Seems as though you do have a serious problem that needs to be addressed. Possibly a lot of money involved.
Clint Liles
Mr. Tofson, go to Clints page and click on the send him a message symbol, you will be informed that you must be friends to send the message and be given the option to friend Clint. Clint will reciprocate and you can message back and forth. Look for the inbox that is always at the top right of the page under your name. I see I have a message now. Hope this helps.
OK, did that. Pretty simple. Thanks RWK.
Bob
r w kennedy said:
Mr. Tofson, go to Clints page and click on the send him a message symbol, you will be informed that you must be friends to send the message and be given the option to friend Clint. Clint will reciprocate and you can message back and forth. Look for the inbox that is always at the top right of the page under your name. I see I have a message now. Hope this helps.
RW,
Thanks for directing Mr. Tofson. I just sent Mr. Tofson some info he can use. Sounds like he needs some "professional' help.
Clint
I love a good meeting of the minds and I know site navigation can be baffling, happens to me frequently. Glad I could help even in such a small thing.
Yup, well said...<[:-)
r w kennedy said:
I love a good meeting of the minds and I know site navigation can be baffling, happens to me frequently. Glad I could help even in such a small thing.
Thanks for helping everyone navigate the message system RWK.
Mr. Tofson, I'm real interested to hear the advice you get. I believe there are probably many more people like yourself who just cash the checks........