Non-Executive Rights and the Executive party

As the owner of a non-executive interest on leased lands, it is appropriate to contact the individual(s) who hold the executive rights to get information about activity?

If so, what is the appropriate way to go about initiating contact? I have contact information from the lease agreement and public record.

Yes, it is appropriate to contact the person holding the executive rights.

Yes, it is appropriate. Hopefully, you get along with him and have a "gentleman's agreement" to share information, because I don't think that he has to tell you much other than showing you the lease he signed.

Thanks for the responses. I wrote a letter to the Exec a couple of months ago and haven't heard back, so either my correspondence didn't reach the recipient (it was a P.O. Box listed on the lease) or they have no interest in discussing the matter. Oh well, I tried.

Try the telephone. If you still get no response, then go to whatever state agency regulates the oil-and-gas industry where the minerals are located. They are likely to have a Web site with ALOT of information about any drilling activity regarding your Non-Executive Mineral Interest (NEMI). You will need a legal description of some sort for where the minerals are located. You might not get all your questions answered there, but you will get most of them answered.

By the way, you DID get a bonus payment when the lease was signed, right? A NEMI is entitled to bonus consideration whenever an Oil and Gas Lease is signed by the owner of the executive rights UNLESS that stake of the mineral rights was severed at some point in the chain of title in addition to the executive rights. I learned this the hard way as a "green" landman, a former broker told me otherwise, and we gave $1,500 to the wrong person.

Anyway, I just ask because last year I identified and located about forty (40) heirs to an undivided one-half (1/2) NEMI for a client who needed to distribute some royalties in suspense. One of the royalty owners said, "Hey, it's great that you found me to pay me the royalties, but what about my bonus?" That's right, the Lessee had leased only the OTHER 1/2 mineral owner (and owner of all surface estate and executive rights) and paid THEM bonus, but failed to pay any bonus to the NEMI owners! And it was ALOT of money at stake. If you did NOT get paid any bonus, then you need to look at the deed where the executive rights were severed from your NEMI and see if the future bonus payments were conveyed also.