I am looking to purchase royalty interests across the Permian. I was wondering what the proper procedure was for suspending the Grantor's royalty payments, and moving into pay status with the operator. Is it as simple as sending them a copy of the recorded deed and following up?
Thanks
Add as much info as you can, such as known wells, lease name and numbers, and old Owner numbers if you have them. Make it clear they are not authorized to put anything into suspense. Send them the copy that has the volume and page recording number on it. Make it clear it is any wells covered by the deed, not just ones listed in your letter. On rare occasion, I have seen leases that actually gave the operator a right of first refusal on the minerals, or required the operator to consent to sales and assignments. Reviewing the lease is always a good idea.