Royalties not paid

#1

I have royalty interests in several properties in San Juan County, New Mexico. The properties were purchased this year by Southland Royalty Co. I received one check from them in June, but have not received any royalties since. I have been calling their royalty relations people on a weekly basis, but all they will tell me is that I was overpaid for months in the past, and they are making up the over-payment out of current revenues. I have asked for an accounting showing which months I was overpaid etc, but they say they are working on that project. They will not give me the name and phone number of a supervisor or land contact. Any ideas?

#2

If the amount of money is more than a few hundred dollars, get a qualified lawyer in San Juan County to send them a demand letter demanding an accounting. If you have your lease documents, a quick review on your part may reveal specific remedies up to and including lease termination for failure to timely pay royalties. I don’t practice in New Mexico, but it’s worth googling their minerals or natural resources code to see if specific protections have been put in place by the state legislature to protect mineral owners. Texas, Oklahoma, and several other states impose deadlines for the companies to pay or provide accounting and penalties for breaking those deadlines.

#3

Good ideas. Thanks.

closed #4