I gave my children a portion of my interest in a recorded deed but it doesn’t seem that they are getting same money per share . Did I do something wrong?
You have to provide additional information for an answer. Compare your division orders to make sure they indicate your intentions, then review your deed for clear language. Non-professionals many times create deeds that do not reflect their intentions.
The mineral owner is responsible for contacting the operator if there is a change in title. Did you or your children contact the Division order department of the operator and inform them of the new deeds. If not, then do so and supply copies of the deeds. The companies do not generally check the county deeds for updates once they finish the Division order.
1 Like
If you did a DIY deed, there is likely a problem. You need to have an experienced attorney review the deed if it was DIY, together with your mineral interest prior to the purported transfer.
1 Like
the mineral rights are calculated based on net mineral acreage/drilling spacing unit acreage, then multiplied by monthly volume and average oil price during the month. then multiply that by your royalty %.
oil wells decline over time. also, the price of oil is pretty low right now. those things affect how much $ your mineral interest gets, in a monthly check.
they can verify their mineral interest with the county land office. they can talk to the landman.
but oil well volume and price fluctuate fairly radically. sometimes they have to close a well for a short period of time to frack a nearby well.
it is incorrect to think of a monthly oil $ of money as a set amount. it is a calculation amount and several of the variables fluctuate.
if the wells decline so much that they do not pay for the ongoing labor, then they well may be closed. the oil producer may file that the well is now a stripper well because of low production. you should watch if this happens because if this is the only well holding your lease, then your heirs may want to sign a lease with a new oil lessee and receive a new bonus based on net mineral acreage. or maybe they want to terminate this lease.
a lower payment does not mean something is wrong. it is likely due to declining production and lower oil price in the US market.