Around 1985 I received a document from Neerburg Oil (I believe it was) with a small check asking for my signature for them to develop/drill on 5 different parcels in Eddy County New Mexico that I inherited from my Aunt. I was in my early 20's, a surf bum and looked at it and without a thought laughed at the percentage royalty rate signed it, sent it off and never gave it another thought.
I kept the original paperwork for at least 20 years and then somehow it disappeared.
A couple of weeks ago I received a letter from Mewbourne Oil in Tyler Texas asking me if I was the named person and if I was to contact them because I had royalties due to me and they were going to be turned over to the state if unclaimed.
I called them verified who I am and they said that that they would send the division orders
and that they had a bit over $20,000 they would send me once the received the completed division orders.
Here is my dilemma: There is a line in the division orders instruction sheet that states:
Quote:
"If you find your interest correctly set out on the enclosed division order we request you do the following"
Since I do not have the original paperwork I signed and it seems the original development company sold their interest to Newbourne my questions are thus:
Could anyone have changed my percentage which they are saying is: 0.00231480 legally without my knowledge during the transfer?
If I sign the division orders is that binding and change my rate if it is incorrect?
Is there any way to get a hold of my original paperwork online?
And lastly if I call Newbourne should they be able to fax me the documents I originally signed and are they required to do so if requested?
I know I know....newbies
Mewbourne Oil is a reputable company and if you call someone in division orders they will email, fax or snail mail you a copy of the lease you signed. You'll still need the net acres and gross acres it is spaced at to figure your decimal. They will also give you those figures but it comes down to trust which is what your having a difficult time doing now. You can get the gross from the state of NM, the net is a different story, if you don't know for certain you'll have to trust them or run title as I don't believe NM keeps tract like CO.
5 different tracts unless unitized will more than likely have different royalty decimals if they have producing wells on them if they are as your net and the gross are probably not identical in each unit, depends on how the spacing or units are set up. I find honest mistakes all the time and yes decimals can from what seems to be out of the blue, change, someone does it but why is not always discovered.
You answered what I needed to know Tim. I'm much more at ease now.
The decimal percentage is the same on all of them. The only difference I can see is 4 of them are on 40 acre parcels and on is on an 80 acre parcel.
Thank You! ~ Thomas
Thomas,
Just call Mewbourne Oil and talk with them in division orders about your concerns and questions and they will probably address all of your issues. It sounds like they are all spaced the same but you can jump on the NM oil & gas web site and look up everything about the wells, all the production, the well spacing and look at the gis mapping of all the wells and where they lay. If I can help you any more just ask. Here is a link:
http://ocdimage.emnrd.state.nm.us/imaging/WellFileCriteria.aspx
I did that Tim and was able to obtain a copy of the original lease from the county clerk from Eddy County the day I called. Mewbourne sent me all the links to each well showing all the data on the wells history,production rates ect. It worked out fine. Thanks again for your help.
Thomas
That's great Thomas, it's like an early Christmas present that will hopefully keep on giving. Talking with the operator is always a great place to start, most operators are helpful and the people are honest.