My name is Sharon Rutan, my 3 brothers and I leased our mineral shares in the SE/4 of Section 136, Block 13, H&GN RR Company, Reeves County, Texas, way back on January 30, 2018, to Wheat Resources. Wheat Resources (they have been helpful) informed me that they transferred our shares to Primex and Raisa Energy. I have been in contact with both Primex and Raisa Energy but have been unable to get any straight answers as to why we haven’t received division orders, royalties or anything else for that matter from either one of them.
I was told that the fracking started in March, 2018 and started producing in June, 2018.
I have exchanged a few emails and phone calls with enquires, but have been passed back and forth with no real answers.
We’ve received many lease and purchase offers since signing the original lease.
It’s been 2 years, Is this normal? Please help, I feel like a hot potato!
Thank You all so much.
Lease from Rutan to Wheat Resources was assigned to Raisa II, LLC, doing business as Raisa II Texas, LLC, in April 2018 - Recorded Volume 1574, Page 312. No part of assignment went to Primexx. Send a certified letter to Raisa citing the assignment and asking for an explanation of the failure to pay royalties under the lease and ask for an accounting of the royalties due. You can copy Primexx. Emails and phone calls are often not sufficient to force a response. Primexx spud the well in October 2017, before your minerals were leased. It may be that your interest was treated as an unleased mineral owner and that the lease was too late for the lessor (Wheat or Raisa) to particpate in the well. This means that the all the associated revenues are being applied to the drilling costs until payout. That could put you in the position that as your minerals are now under lease, after payout, you will only get the royalties going forward from that time and Raisa will come in as a WI. That would be unfortunate and, depending on your net mineral acres and associated royalties, you may need to consult an attorney.
You may be in a minimum pay status of less than $100. Email Primexx at ap@primexx.com and ask for a status of your account. If you have no account, then you were no included in the well or wells. They have three wells in Sec 136 Blk 13
If no reply, then send a certified letter with a copy of your lease to the land dept at Primexx Operating Corp. Two Energy Square, 4849 Greenville Ave, Ste 1600, Dallas, TX 75206
If your account is less than $100 (the threshold most companies use for issuing a check), you have the right to write a letter requiring them to lower your threshold to $25 (allowed per Texas statutes). But also bear in mind that by law, every oil company must print and mail a check at least once a year, regardless of the amount–I’ve seen checks issued for $0.02 (ridiculous, yes).
There’s a chance their records show you with a bad address. If the post office returns any piece of mail as undeliverable, most companies slap the owner in “suspense for bad address” and walk away. A high percentage of these returned mail items are because of post office error! A worker tosses the envelope in the wrong bin during sorting, the next worker finds it in the wrong bin and automatically stamps it “undeliverable” and sends it for return-to-sender.
Every royalty owner not receiving royalties should always contact the oil company once every year, just to make certain the oil company has the correct address on file and make sure their account is in pay status. Or use that as an automatic way to find out if your lease has been sold to another company.