So I recently received a Division Order to confirm my mineral interest on an old vertical well that is still producing since being drilled in 1986. Just wondering why I am just now getting this, and why haven’t I been receiving royalty payments since my mother passed leaving all her owned rights to me in 1986. Reasons why this might have happened would be welcomed. I just got this but have not talked to the producing oil co yet, I’m mailing back the signed DO, 1099, and automatic payment request form this week.
Typo in the above post…my mother passed in 2013……
Did you file your mother’s probate or other required documents in the county deed records to establish your title in 2013 and then notify the operator of the well of the change of ownership with copies of the recorded deeds? That is the only way the operator would have known and updated the records to pay you. If the well has been in continuous production, then your monther’s royalties may be held in suspense or escheated to the state, most likley Montana or her residence. You should search for these funds in order to retrieve them. If the well has not been in continuous production, then the old lease may have expired and you would want to execute a new lease. Are you certain the DOI (royalty decimal) on the division order is correct? You need to know how many net mineral acres you own, the acres for the well and the royalty rate in the old lease.
Thanks much for the insight….checking the Montana BGOC, it appears that this well has been in continuous production. We did get other interests transferred where my mother was receiving royalties, but this one got missed apparently. I’ll need to check, but I believe the decimal interest number is correct, so how do we go about retrieving funds held that may be in escrow/reserve?
Looks like I should hire a land attorney to help me out with this…..13 years of royalties could be interesting?.
So, would it be advisable to return the signed DO paperwork in any case?
If the funds are held by the operator, then they should be automatically sent to you. Enclose a letter stating that you have owned the minerals since 2013 and ask for all suspense royalties. Update the date on the DO to 2013. If there was a different operator in the past, consider sending a letter or email and asking about any royalties held in suspense for your mother and/or father and enclose a copy of your deed. Search for your parents’ names on the funds held by state treasuries and then start the process of proving your rights. No need to hire an attorney to start this.