I leased my property in Oct, 2012 and they want to renew it. In looking over what I got paid then I found they paid for acres which would be for royalty. When it was split up among heirs each land owner was given right to lease their property and receive all from that amount plus what amounted to 1/7 of royalty payments. I got paid for 8.2375 acres instead of about 18 acres. Can they be made to pay for that before I sign new lease? Thanks Jim
James, I think it would be better to concentrate on this go around, meaning lease cycle. You can't force an oil company to do anything short of a lawsuit. If the amount you feel you were shorted was less than $20,000, it probably wouldn't pay [out of your pocket] for a lawsuit and it's not certain you would win. Be glad you have another opportunity to negotiate and make the most of it. If they shorted you I might use it to be difficult and browbeat them, put them off balance for negotiations this time.
Jim, I agree with what RW said, and I would contact other oil companies active in the area to see what their interest might be. Nothing gets a better bid than competition. I don't know where your land is, but the standard in west Texas is a bonus for a 3 year lease that will pay 25% royalty if they dig a commercially feasible well. Just because they had a lease and didn't dig one, is the reason i would think twice of giving them the second opportunity. I do not understand your numbers to comment on what did happen, but work on this time around and you will be happier.