Well, that's what I figured, but it did sound like he might not have signed an OGML and then after the well was completed and paid out he wanted his APO royalty payments for an unleased tract. I have seen that scenario play out plenty of time in residential areas.
I’ve seen this so many times… when the mad rush to the courthouse ends and the “protection leases” are taken based on assumptions of title (ie: company will take leases from all the family members as a precaution if probate for grandfather Bill isn’t filed yet) but once the wells are drilled, the title opinions may show that those family members don’t own the minerals or as much of the minerals as they were paid for in their lease. If they don’t own the minerals, then there is a worthless lease but that person got some free bonus money and possibly delay rentals out of the deal… but the confusion creates anger when their neighbors or family start receiving royalties and they don’t. They don’t understand why and when we try to explain that they don’t own the minerals afterall, I’m often threatened with lawsuits because we took a lease from them. There are only so many ways to explain that a lease doesn’t guarantee your title, it only guarantees the operator’s right to drill should you actually own them.
I hope this is the case and there really aren’t corrupt and non-responsive oil companies you’re dealing with. I hate to hear things like that. We care about our owners and sincerely try to help them at all costs.
Wow, somebody threatened to sue you for giving them money that they didn't deserve. That's freaking rich!
What gets me is that the operator does not dispute the lease. They have never asked for any additional information (quiet title, etc.). They claim there is no production, when in fact, there is certainly production. I may send another round of certified letters soon. I've heard that this operator has improved their customer services lately. I won't hold my breath, but may as well roll the dice again!