Have a question I’ve been puzzled with. How do you know if the decimal ownership interest is accurate and that you are receiving the correct monthly dollar amount? Is there a way to confirm this? Is there a service you can pay to assist with this? Or perhaps you simply trust it’s accuracy. Thank you for your response.
Here is a link to a calculator that will give you a pretty good idea of your percentage:
However, you also need to know the fine print of your lease. Depending on its terms, the oil company could be deducting various costs attached to the well and mineral transportation from your payments.
The Company will have a legal document known as a “Division Order Title Opinion” typically prepared by third-party attorneys who specialize in preparing these. This can be quite a complicated process to create, depending on how widely dispersed the mineral ownership is under the well. Not something a layperson could typically interpret. If you believe you are not being given the percentage you are due, you would probably need to have a knowledgeable attorney review the DOTO.
Sometimes there are unresolved ownership questions due to unlocatable heirs, etc. When that happens the royalties that would be due to those owners are held in escrow until someone shows up to claim them. After a number of years, those funds are eventually turned over to the State as unclaimed property.
Some operators are nice and will provide you with the chain of title as it relates to your interest. Others won’t unless they get a request letter from an attorney.
Separately, you can research the chain of title yourself, or hire a “landman” to do it. They charge $350-600/day for someone who is competent and experienced enough to know what they’re doing independently. Depending on the complexity of the title, you may or may not need a more experienced landman on the upper-end of that price range. Once you have separately established the chain of title, you can compare it with the net revenue decimal interest and/or the operator’s title report.