Does anyone know how or when an NPRI owner is notified that their mineral interests have been leased? I have a 1/4 Non-Participating Royalty Interest (no surface ownership) in acreage in the Permian Basin. Having no negotiation rights, how would I know if there has been any leasing activity? What (if any) is the obligation of the Executive Owner of the minerals to inform me of the execution of a lease, terms of the lease, the drilling status, any seismic tests ..... or is it common for the NPRI owner to be totally unaware that a lease has even been signed? It seems that the mere existence of a lease should be communicated to the NPRI as a common courtesy or even a fiduciary responsibility to our "common interests" .... or should I expect that notification of any leasing activity would only take place if or when a Division Order is needed?
The executive over your NPRI owes you utmost fair dealing but that only happens once a lease has been granted. In Re Bass, the NPRI owner sued Bass because they refused to lease *or shoot seismic or some exploration activity* and the court held that the quasi fiduciary standard applied only at the point if leasing.
To answer your question, there us no obligation on the part if the executive to inform you of any lease offer, any lease granted, etc., unless the transaction creating the NPRI requires them, to do so.
Many NPRI owners find out when they are asked to ratify a lease for pooling the NPRI.
I've always wondered if you had NPRI in an area that is seeing some leasing activity, to contact the other additional NPRI or mineral interest owners and at least attempt to be on the same page when leasing knocks on the door of the executive rights holder, so everyone gets a good deal. Of course you are dealing with people so there are always uncertainties.
This answers some questions I have had about NPRI my family owns in WV, and just recently found out we are NRPI owners, very frustrating. I have found from watching the permits issued that a District, probably next to ours has been permitted. Can someone tell me if it would be advisable to contact the leasing Company or the parties on the Farm Name? I have been in contact over the years with these people. They have never given me much information and have never returned my calls.
which is Doddridge leases and deeds (some of them). If you know the other people, the people with the leasing rights, you can search that for their name. Or for the name of the company you found. If you found a recent lease describing your property, then you know that much. Might be very time consuming depending on how many entries for the company etc.
Thanks again, Nancy, I will look that up using the info I have, the permits I found were for West Union Dist, our tax statements and deed says Central Dist. I have the API for the production on an existing well, we received royalty on that 2 times a yr since 1996.
which is Doddridge leases and deeds (some of them). If you know the other people, the people with the leasing rights, you can search that for their name. Or for the name of the company you found. If you found a recent lease describing your property, then you know that much. Might be very time consuming depending on how many entries for the company etc.