So hopefully I can explain this to where it is easy. In Feb of 2015 my uncle donated 10 acres to me and my husband so we could build a house. This donation included mineral rights. I am dumb to all this so I assumed things that weren’t necessarily true. I assumed that oil & gas companies keep up to date records and that any payments owed to me would start coming to me.
Here we are 4 years later and I had started digging since I knew for sure my uncle was getting payments. I find out that when I acquired the land that Buesa was the production company and Indigo took over in 2017. Indigo already had funds holding and just needed my tax info and I received a check this month for production for all of 2017 and 2018. I was directed to contact Buesa about 2015 and 2016.
I contact Buesa and they inform me that because they weren’t informed of the transfer of title for our 10 acres that they in fact paid my uncle per the original O&G lease. She further informs me that is my fault for not informing them of the transfer in 2015 and it is now between me and my uncle to settle.
Do O&G companies really not do periodic title searches and is this in fact what I will have to do if I want to be paid what is owed?
You are responsible for contacting the companies to get royalties. You have to file the correct paperwork in the county where the minerals are owned in a timely manner. Companies do not normally do a title search after the original one is done when the well is drilled. They move onto the next well. She is most likely correct. You will have to take it up with your uncle and persuade him to return the royalties to you. When a new company takes over, they often do a new title search.
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Thank you for that. I actually got a local attorney on the phone and he advised me that even if I wanted to sue my uncle for the money I would have to get that right from Buesa. If that sum is anything like 2017 and 2018 it is a good chunk but is it worth it…
You are responsible. It’s up to you to get the paperwork filed in the county where you own the property and then send that recorded document to the oil operator. Just have to say … Your uncle GAVE you the 10 acres. What a sweet uncle to give you such a wonderful gift. What a Blessing you have already received.
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Why would you want to “SUE” your Uncle that gave them to you in the first Place? Be glad you got anything in the first place!
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Who knows, He might have wanted to give you other things in the future, but I’ll bet he will rethink that!
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