My current producer purchased the properties in which I am invested effective August, 2017. This new producer/owner delayed paying on actuals for more than one year, paying estimates only. They actually did not report the MCF’s even to the State for the first year. There is more, but this is enough to demonstrate the issue. I Recently heard that a “tolling letter” can be sent to the producer to put them on notice that they will continue to be accountible for all corrections to erroneous adjustments, beyond the date of the Statute of Limitations. Have any of you ever heard of a tolling letter, and if so what should it contain? Does is necessitate initiating legal action at the same time?
When there is a dispute between parties and the statute of limitations is or will start, the parties may agree to toll the statute of limitations Effectively this delays the statute of limitations at that point. Then the parties can continue to discuss the issues without a lawsuit having to be filed. Otherwise a lawsuit needs to be filed. It all depends on the facts and circumstances. I do not think that this is something that only one party can do, but that is a legal and litigation question requiring expertise. If you are facing a time limit in the state where the minerals are located, then you should consult an attorney for advice and assistance.
Thank you. Your explanation is very much appreciated.