Lease on 2 tracts, each a different percent ownership

Oil and Gas Leasing Help
1

My sister and I have inherited (from 2 different relatives) a lease on 2 adjacent tracts in West Virginia. We have plat maps showing the 5 wells, with 3 on one tract and 2 on the other. The 3 wells are on the tract where we own 1/2 gas, and the 2 are on the tract where we own 1/4 gas. In looking at old records (from 1989) they have always paid all 5 wells on a 1/4 royalty although we are taxed by the county, as I stated above, at 2 different percentages. We just received transfer orders for the wells (the second relative just died) and I have been looking into this. I don’t have all the deeds (am in the process of getting those I have citations for) and am an out of state owner so can’t easily go to courthouse and look things up.
The county has put production (to determine tax assessment) all on the property where we own the 1/4 interest and no production on the other one, and I guess that is how it is reported.
Any thoughts on how to proceed? Thanks in advance for any help.
Nancy Mosley

2

Hi Nancy Mosley, Sounds like you are going in the right direction. I would call the Operator of the wells, asking their Land dept. to give you specifics on what their lease records show as to royalty percentages paid from the root source… the leases themselves. This way you will be starting from solid ground. Then proceed to correct whatever you need to with the taxing authorities.

3

Thanks for your advice. The lease I have just states the 1/8 royalty for the leased property - both tracts mentioned and then the acreage total mentioned. I have tried contacting the land dept. and haven’t heard back. It is time to follow through. The state tax dept. explained how the county gets the information and I can understand how they interpreted the information even though they made a mistake. Thanks again for your help.

Reagan Thompson said:

Hi Nancy Mosley,
Sounds like you are going in the right direction. I would call the Operator of the wells, asking their Land dept. to give you specifics on what their lease records show as to royalty percentages paid from the root source… the leases themselves. This way you will be starting from solid ground. Then proceed to correct whatever you need to with the taxing authorities.