I inherited NPRI mineral interests in Upton Cnty Texas area and recently received docs for “ratification of designation of pooled units” for 2 units consisting of 5 horizontal wells. I have already received the first 2 months of payments even though I haven’t signed the pooling docs, so obviously some default calc is being used. Being told by landman that it won’t make a difference either way, using the acreage ratio or linier calc, so my question is, why sign? is there risk in not signing them, should i negotiate new royalty rates, or what?
A ratification is a significant legal document that can impact your future royalty income. You may have already ratified as a matter of law by accepting royalty checks. Very important that you have an oil and gas attorney review both the document that created your NPRI and the proposed ratification agreement. Ratification agreements usually can’t be used to renegotiate royalty, but there are exceptions to everything.