Royalty Payment Not From Lessee ~ Operator. Rather, Refinery

Texas Mineral Rights Brazoria County, TX
1

Greetings,

I am a small mineral interest holder in my GGF Brazoria County Ranch. A portion of it sits on the Allen Dome Field.

End of October 2015, well Rosalee 5150 was completed successfully.

It was flowing approx. 100 BBL/Day. No further data will become available for another month or two. I know how to use TX RRC to verify production.

I have searched all pertinent filings etc. at TX RRC for my files.

I was told by another Allen heir that TTE [Lessee-Operator] plans to have the refinery pay the mineral royalties.

I have almost 50 years history of OK mineral royalty payments and have NEVER received royalty checks from other than the Lessee-Operator.

Is this PROPER?

If not, suggestions on how to proceed would be appreciated.

My concerns having a NON-SIGNATORY to the Lease have my SSN and other personal data. I do NOT care who they are and what their PRIVACY policy states. Not secure enough.

Thanks for reading.

2

I sure would like to help… but you have a lot more knowledge than I have! Never heard of such a thing. Thanks for posting. I’ll keep monitoring the site for updates. Our family has some minerals in the Iowa Colony. Leased years ago… lapsed… and nothing happening now.

3

There is no requirement the operator pay you. I have seen many cases, especially with gas, where the gathering company pays the royalty owners. It really depends on the agreement between the operator and the downstream company as to who pays you. Sometimes the operator of record is really in name only, as they subcontract out most of their duties.

4

This could be a good thing, because you have NO contract with the refinery then you have NO arbitration clause with the refinery. If there is ever a dispute over payment you can just go to court.