I own a small portion of non-executive mineral rights on some land in Glasscock County. I recently received a ratification letter for a lease with an effective date of 04/01/2013. I have received these type of letters in the past, but the bonus amount involved was usually for a fairly small amount. However, the amount per net mineral acre for this current lease got my curiosity up. I used the abstract number for the section of mineral rights I have an interest in and have been poking around on the Texas RRC website. I discovered a drilling permit that was issued in 2006. The last activity on this section that I was aware of was back in 2001. I'm assuming bonus money was paid for the 2006 drilling, but I was never contacted. Who could I contact to see what the lease conditions were on this activity?
I would contact the executive and find out why you were not paid your non-executive share. From my way of thinking, the buck starts with them with the fiduciary duty to treat you equally as they treat themselves.
Buddy Cotten
Thanks for the response. So any money that I might be owed would have to come from the executive owner on the lease and not the operator? My assumption was that the operator on the lease is responsible for researching the mineral owners on any prospective lease they are entering into. Anyone going through Glasscock county records for this section of land should have seen my share percentage.
Not necessarily, but the onus of utmost fair dealing is upon the executive. This can be removed by lease terms, but it is rare to see such a provision. As I said, the buck starts with them, but it does not necessarily end with them. Tolling statutes for limitation may have already tolled on your claim. But there are exceptions.
Best
Buddy Cotten