We’ve noticed a possible incorrect decimal interest on some older vertical wells we inherited. Payments appear to be based on a 1/8 royalty, and our lease is for 3/16. These are legacy wells, so we weren’t planning to push hard on correcting past payments.
However, we’re now seeing new horizontal wells being permitted in the same section and want to make sure the correct royalty rate is applied going forward.
My question is would it be better to:
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Raise the issue with the operator now (and risk going into suspense while they review), or
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Wait for the division orders on the new horizontals—assuming a fresh title opinion will be done—and address any discrepancy at that point if needed?
Curious if others have dealt with something similar. Thank you.