I inherited several mineral interests over 12 years ago and currently have existing leases in Anderson, Trinity, Walker, Madison and Houston counties. I have 3 siblings all own 1/5 interest and I own 2/5 interests. These ownership rights have been on file in all these county clerk’s offices for years.
I recently encountered a problem with a division order from a company located in Tyler, TX on mineral interest I own in Houston County, which had my interest ownership as 1/5. I initially contacted them in early August directly pointing out my 2/5 ownership requesting they revise the division order. On September 6, I mailed them certified copies of family documents filed in the Houston County clerk’s office to prove my claim. Obviously their title work was flawed. I have never had this issue with any other energy company.
They assured me they would investigate and make the appropriate changes but it would take them a few weeks. Subsequent calls and voice mails have been ignored and the changes have never been made. My siblings received bonus payouts in early July and subsequently have received royalty checks. I have not received any bonus or royalty payments.
Who should I contact at the Texas Railroad Commission to file a complaint about this matter or would someone have a suggestion on best handling this issue. Thanks!
Mr. Kennedy is correct, Mr. Waller; it is the responsibility of the Railroad Commission to regulate oil and gas operations in Texas, not to resolve leasehold and/or mineral rights matters. They will have nothing to do with this matter. Most but not all division orders will stipulate all the interest in a well or unit and in the aggregate it will total 100.00%. You might be able to discover the discrepency by reviewing the division order to see where your other 1/5th has been misplaced. If the operator is not acting as fast as you think it should in responding to your concerns, cloud title by writing a letter to them, and to the crude oil purchaser or the gas gatherer and ask that all the interest be put in suspense until such time as your title questions are resolved. You can ask the operator to provide you a division order title opinion and they should be willing to comply. That will by golly get everyone's attention, quickly. If it doesn't, unfortunately, you will have to seek legal advice. We can't seem to breathe without lawyers these days, it often seems.
Mike, excellent suggestion, I will pursue this course. Many thanks for your input.
Ike
Mike said:
Mr. Kennedy is correct, Mr. Waller; it is the responsibility of the Railroad Commission to regulate oil and gas operations in Texas, not to resolve leasehold and/or mineral rights matters. They will have nothing to do with this matter. Most but not all division orders will stipulate all the interest in a well or unit and in the aggregate it will total 100.00%. You might be able to discover the discrepency by reviewing the division order to see where your other 1/5th has been misplaced. If the operator is not acting as fast as you think it should in responding to your concerns, cloud title by writing a letter to them, and to the crude oil purchaser or the gas gatherer and ask that all the interest be put in suspense until such time as your title questions are resolved. You can ask the operator to provide you a division order title opinion and they should be willing to comply. That will by golly get everyone's attention, quickly. If it doesn't, unfortunately, you will have to seek legal advice. We can't seem to breathe without lawyers these days, it often seems.
There are also statutory prompt pay statutes you can use as leverage to get them to straighten out the situation. An attorney can incorporate these in his demand.
There are also statutory prompt pay statutes you can use as leverage to get them to straighten out the situation. An attorney can incorporate these in his demand.