I inherited leased mineral interests in Oklahoma. Last October a small independent Texas operator drilled a well. The well started producing the first week in November.
Six months have gone by and I have not received divison orders, royalty checks, or any information on the well's production. On the OCC website, the only information on the well is the drilling permit. There is not a spud report or completion report on the web site for the well.
There are no numbers or names on the well's tank batteries. So I have no idea who is purchasing the oil.
Several months ago in the local paper there were notices of a federal tax lein against the operator and of a law suit filed against the operator by an equpiment company for debt. So i know the operator has financial problems.
Two weeks ago I sent a certified letter to the operator requesting information and payment for the well's production. I did not receive any response to my letter.
Yesterday the operator was killed in an accident. I'm very sorry for his family.
Any suggestions on what I should do now?
i would investigate the possibility of filing a claim for your losses against the operators estate
In general the producer's estate (family) will have to post a letter in a local paper which is a notice to creditors about the passing and advising of the need to file against the estate for any debts. It is done precisely for the purpose you are needing; to be able to file claim to money owed from the estate before the estate is divided up among family/friends etc.
The problem in your case however, is that you don't know what the debt is since the producer didn't file the appropriate paperwork. It will be documented somewhere, if nothing else by the purchaser of the hydrocarbons from the well. I doubt it is going to be a walk in the park.
However, in the meantime, you are part of a drill unit will a producing well - and that is a good thing. The trustee may have to sell the well/mineral rights to address creditors etc. Due to the nature of this situation, I would get with an attorney to discuss this with them. Not sure what kind of attorney, but I'd start with a gas/oil attorney.
Good luck it will be a tough situation to figure out but take solace in the fact you do have a productive well. I might also check at the courthouse to be sure that your lease is properly file with the County Recorder and make sure there is accurate contact information on file so people can get a hold of you. Again, good luck.
Wilson
It dawns on me that I am likely off base with my response since the debt to you (royalties) would be owed by the drilling company. Depending upon the corporate structure, the debt may pass through to his estate. And next So although the owner has passed, are there people still at the company. So maybe you can investigate the company more to determine if there were partners or if someone is taking this person's role/responsibility. Hopefully it will continue in operation or be sold and continue in a production capacity. But your claim may be against the company and the producer's personal estate. I'd see a lawyer.
It sounds as though the producer already has litigation in the works, your lawyer may want to review whatever is public regarding that case as well