This is probably too specific of a question to get an answer here, but does anyone know what the effect is of depositing a royalty check if you haven’t signed a division order (and you have reason to believe the decimal interest is reasonably accurate). I assume you are then bound to the decimal interest that is on the check stub? What if the oil company later finds you own more or less decimal interest in the unit than what was on the check stub, can either party then change it if you have deposited the checks? This is in ND. Thanks.
Deposit the check. Payment for royalties due and owning a royalty owner have nothing to do with the ownership interest of the owner.
Huh?
James H. McConnell, CPL said:
Deposit the check. Payment for royalties due and owning a royalty owner have nothing to do with the ownership interest of the owner.
A check doesn’t change the ownership one way or the other. The ownership interest in any well or unit is a mathematical formula based on the size of the unit, the ownership interest in the tract and the royalty amount reserved in a lease. Just because a check stub has some numbers on it; it doesn’t effect what the owners decimal interest is in a well. Always cash the checks. If you have to sue one of these companies, you will at least have some money to do it. What usually happens is a company uses your money to hire their lawyers to keep you from getting your money.
r w kennedy said:
Huh?
James H. McConnell, CPL said:Deposit the check. Payment for royalties due and owning a royalty owner have nothing to do with the ownership interest of the owner.