Inconsistent Royalty Payments – Texas

My wife is a RI owner for oil production in Camp County, Texas. When she inherited these rights, BASA Resources was the payor, and paid like clockwork at the end of each month via ACH. 84 Energy took over stating the same end-of-month schedule. However, it’s anybody’s guess as to when she gets paid – from 1 to 2 days to up to 2 weeks later (again, by ACH). I’ve been an interest owner myself for many years, and never experienced such “uncertainty” from my payors. Is this common?

I have had the same issue with 84 Energy with two wells in Houston County, Tx. These wells were also previously operated by BASA and paid like clockwork. They were sold to 84 Energy last year. In addition to irregular payments, it seems as though they are inconsistent on paying on both wells each month. Also, production figures have dropped. I have tried numerous times to talk to “a live person” regarding this. Each time it goes to a voice mail that’s never returned. I’ve also sent emails that have not been returned. Something is definitely no right about this Company. My fear is that they are “skimming” some of the income for themselves. If anyone has an idea as how to get answers from this Company, I would appreciate it. I’m ready to report them to the Texas Railroad Commission. Is that a good place to start? Thanks for any advice.

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The RRC will only look at specific complaints about the well violations and regulated matters. The RRC will not be involved or look into what is a civil dispute between a mineral owner lessor and the oil company lessee regarding compliance with the oil and gas lease.

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The Texas RR COMMISSION provides access to all production records from day 1 of the wells existence. You will need the property number. I feel your pain. Wildfire Energy in Houston hasn’t made payment to us in over 10 years. It’s sad that Texas allows these wealthy companies to steal from the regular people.

Sorry to hear about that. Not surprising but troubling it’s across the board. 84 Energy got off to a bad start, indicating things to come. When my wife deposited the first check after 84 took over, it got kicked back by 84’s bank, and the same thing happened to her brothers. Due to this and the past due payments, I’ve spoken on my wife’s behalf to Erin Wolfinger of their CPA firm many times. She was cooperative, but it seemed it was always something – “they’re reorganizing their system”; “we no longer process payments, 84 Energy has taken that in-house”, those sorts of things. My wife was told last month that “moving forward, things should be back on track.” Yet, she didn’t receive her payment for July (covering May production) until this past Monday (8/11/25). To your suspicion of “skimming”, BP pulled that with my parents long before my sister and I inherited our family’s rights in Louisiana. Long story short, my parents each got a check for $15,000 for withheld royalties going back several years, and BP never provided an explanation. Sadly, it’s “buyer beware”, and until these companies become more transparent (which they won’t), I’ll remain suspicious. To these companies, an informed mineral owner is a dangerous mineral owner.

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Totally agree. I haven’t checked this month, but 84 Energy has not been reporting production on the RR Commission site for several months – interestingly, for production months they have since paid royalties to my wife on. I noticed they’re not alone. But most seem to be, including BASA who sold hers to 84 Energy. I have a close relative in the O&G business in LA and he said the LA DNR sides with the production companies over the owners, and the RR Commission is even worse.

In cases like this in Texas, you should send a demand letter for payments of royalties to the operator and a request for interest. It has to be sent by certified mail return receipt. List your name, owner number, well names, etc.

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Those regulatory commissions do not regulate royalty payments, so it is not a favortism issue. This is a civil and contractual issue.