I understand that in Texas operators may be able to hold proceeds until the amount due reaches $100. Is there any requirement that they must pay annually even if the amount is less than $100. Is there any recourse in TX for getting paid on smaller amounts?
The TX Natural Resources Code states there is a statutory requirement that accumulated oil and gas royalty payments that do not reach $100 be paid at least once within a 12-month period, IF the amount due has reached a minimum of $10.
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You can also change the Division Order minimum from $100 to $25 by filling out a new one.
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Do you make your own DO and if so, how? Or do you ask the company to send a new one and change the amount once you get it? These are inherited minerals so I don’t have the original DO.
You can use the NADOA template and fill in the correct information. Or you can ask the operator to send a new one and check it against the NADOA form. You do not want them to change any terms on the lease. I use the NADOA form if the operator form is trying to make it longer than a page and change anything that they should not change.
You have to double check the decimal amount to make sure that it is correct and matches your net mineral acres, royalty, etc.
0_NADOA_Division Order Model Blank Form 2017v 2.pdf (78.2 KB)
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