We own minerals in Canadian County, and the well on our property has been in production for eight months. We have not received a payment yet. We’ve called Paloma numerous times and we keep getting different answers as to why they haven’t sent our check and they owe us a substantial amount of money.
Has anyone else had trouble getting their royalty checks from Paloma Resources out of Houston Texas?
They have to pay you 180 days after first sales by statute. If they do not, they owe you 12% interest if your title is clear. First sales, not first production. They may slip by a month if the first sales date is after their check cut date. I don’t worry about that. Also, if the well is a multi section well, it may take a bit longer since there are hundreds of owners in each section. I usually wait until about eight months after production and then send a letter by certified return receipt mail requesting my Division Order, payment and the interest payment. Keep copies of every document. The demand letter usually gets things moving. I have heard that Paloma is running behind, so you are not the only ones.
Thank You, M Barnes, thank you for your response. We appreciate it.
A good place to check on first sales is the OK tax site. Look up your well by name (lease name) and hit the blue PUN number. The Active Date is very close to first sales, so that gives you a hint of when the time clock starts running with regard to payment. In my comment above, I look up the active date and then set a tickler notice on my calendar to send the interest and payment demand letter about eight months later if I do not have payment yet.
https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php