I thank everyone who has helped with very awesome conversation and advice, being it is March and the first barrel was purchased in September 2012. We should be getting word from Continental or Diamond resources soon. I hope! Should I bug them and call again. No one ever calls me back. God Bless! Kathy
Kathryn, by state law they have 150 days after first sales to pay or they owe interest, assuming you have good title. Operators are late all the time paying. They need not send you a division order nor do you need to return one to get paid by state law. When you decide to jog their elbow is up to you. You could sit church mouse quiet and let the interest pile up, 1.5% a month, 18% a year on past due payments or you can alert them. The thing is that the law says they must pay interest, not that they must pay on demand. The operator will pay in his own good time. A few months of interest is nothing to an operator, a years worth of interest would start looking like a disaster. You can alert them, they will still pay on their timetable. I hope this is clear and that it turns out whater way you wish.
Hmm? I see RW. So the longer I wait and the longer they wait may be to my advantage. Rw, do they sometimes take more than a year to contact and pay?? thanks Kathy
r w kennedy said:
Kathryn, by state law they have 150 days after first sales to pay or they owe interest, assuming you have good title. Operators are late all the time paying. They need not send you a division order nor do you need to return one to get paid by state law. When you decide to jog their elbow is up to you. You could sit church mouse quiet and let the interest pile up, 1.5% a month, 18% a year on past due payments or you can alert them. The thing is that the law says they must pay interest, not that they must pay on demand. The operator will pay in his own good time. A few months of interest is nothing to an operator, a years worth of interest would start looking like a disaster. You can alert them, they will still pay on their timetable. I hope this is clear and that it turns out whater way you wish.
Kathryn, sometimes they do take that long. Although there is a law on the books that the operator must pay interest on late payments if you have good title, I think they usually don't pay interest until you tell them you know the law and ask for it. If you were going to put the money in bank CD's that probably wouldn't pay 2% a year makes 1.5% a month look like a good deal. Just use what you know to get the best deal possible for yourself. You can try to rush them, which will probably have little effect, tell them you know about the interest which may make them unhappy, but have little other effect, or you could sit back and see just how much interest they want to pay you. I have seen cases where the operator pitched a fit after 1.5 years of not paying, saying there was a title problem, which they never identified what the problem was and the mineral owner did nothing to clean up their title, and the operator started paying. There either was no title problem or the operator caused the title problem because the operator can't fix your title, you have to do that. If the operator could fix your title, they could also just transfer it from you into their own name. I'm glad they don't have that power. Like I said, the operator could throw a fit if too much interest built up, but if pressed they would pay because the law is on your side, if your title is marketable. I hope this helps.
RW, thanks again. Well, being we all three updated our title in 2010, with court office that should be still good, right? Do I call Divide county and ask them if they see the title was updated in 2010? I know we got confirmation of that. God Bless! Kathy
r w kennedy said:
Kathryn, sometimes they do take that long. Although there is a law on the books that the operator must pay interest on late payments if you have good title, I think they usually don't pay interest until you tell them you know the law and ask for it. If you were going to put the money in bank CD's that probably wouldn't pay 2% a year makes 1.5% a month look like a good deal. Just use what you know to get the best deal possible for yourself. You can try to rush them, which will probably have little effect, tell them you know about the interest which may make them unhappy, but have little other effect, or you could sit back and see just how much interest they want to pay you. I have seen cases where the operator pitched a fit after 1.5 years of not paying, saying there was a title problem, which they never identified what the problem was and the mineral owner did nothing to clean up their title, and the operator started paying. There either was no title problem or the operator caused the title problem because the operator can't fix your title, you have to do that. If the operator could fix your title, they could also just transfer it from you into their own name. I'm glad they don't have that power. Like I said, the operator could throw a fit if too much interest built up, but if pressed they would pay because the law is on your side, if your title is marketable. I hope this helps.