Royalty rights

Adriana, you need to figure out a dollar value for this. If they are going to rework the well, I would assume that they think there is a good chance that the production was worth the rework or they would walk away. I think it made money because, why would they want to lease you and have to pay you royalty from their own pocket if the well lost money? If it was a loser I would say heres your part and you owe this much going forward with the rework, I wouldn't want to offer you a lease.

If recording conversations is legal in your locality, I would try to get them to say they never received your lease. I think they are holding your lease in reserve so whichever way it bounces, they are covered. If you knew the lease was the better deal you could offer to send them another one, put them on the spot and make them pick a side. Letting anyone you are in a business dispute with have it any way they want it is not a good plan. Pin them down and take their options away. Consult a lawyer as to whether you can record a retraction of the "missing" lease if that looks desirable, since you have received no consideration and they claim to not have the lease, the old, dog ate my homework excuse. Just in case the lease "just happens" to turn up later. I think you are going to come in third in a race of two if you let them spin it any way they want. First step, what's it worth?

Pete,

Texas does not have equitable pooling. To have equitable pooling would go against the Rule of Capture, which has long been established in Texas jurisprudence. You might want to read my blog posts on pooling in Texas.

http://www.mineralrightsforum.com/profiles/blogs/pooling-in-texas-part-3

http://www.mineralrightsforum.com/profiles/blogs/rule-of-capture-regarding-oil

http://www.mineralrightsforum.com/profiles/blogs/the-basics-of-pooling-and

Pete Wrench said:

Wait a minute, Andrew, you're saying that she's not legally entitled to her royalties without a lease? So oil-and-gas companies can go around, lease drill-site tracts, put whatever unleased mineral tracts they want into their units, and then tell those mineral owners to sign whatever lease they want them to sign or their royalties evaporate? That does not sound right to me, seems like she should be legally entitled to her royalties since she is the OWNER of those royalties.

However, like you said, if the Lease she signed says that royalties are due from the date of signing or some other date in the future, she probably just signed away whatever royalties she had coming to her.

Andrew said:

Adriana,

If your tract was not the drillsite of the well, they are not legally obligated to lease you or pay anything, even if you are inside of the unit boundaries...., because you are not legally entitled to it without a contract stating otherwise.

Thank you Buddy, I had given up.