After waiting a year and some months, we have received the DO's from Statoil....which had taken over Brigham Oil, the original drilling company. These were received and returned within the first week of May and we have not received any response to numerous inquires as to when we might expect royalty payments. Our property, in McKenzie County, ND but I don't know if that has anything to do with the delay.
Is there any reason this company is so slow in getting royalties paid and why they refuse to respond to any inquires? Are there any legal requirements for them to communicate with mineral owners?
Thanks
I have not found any legal requirements that an operator in North Dakota must communicate with a lessor. As far as I know, the only thing you can do to make them answer questions is to sue them. If your well/s were on the Ft. Berthold indian reservation land, by federal law you would have the right to look at the books in the company office any time during normal business hours.
i have a working interest in 3 wells that have been drilled in McKenzie County (and 3 more that are drilling). first production came online in 10/12, and have seen nothing from Statoil except JIB's. i'd love to hear any opinions on how i can get them off dead center besides a lawsuit. thanks.
Thanks RW. Obviously, Statoil bit off more than they can chew when they acquired Brigham Oil. There is no incentive to ramp up to get everything handled in an efficient manner. Total frustration.
We are, after all, partners in this process and it would be great to have open lines of communication with them.
We have mineral rights just south of this piece with Triangle Oil and they are paying us and they always respond to any inquires we submit.
Brigham was behind before they were acquired by Statoil, at least that is my understanding of the situation.
Amazingly enough, I just received two phone calls from Statoil...on voicemail...advising that there are some title requirements to be completed (before royalty payments are sent).
I definitely got that impression from speaking with Brigham Oil in the past. References to backlog and the new Statoil system that had to be implemented.
Patrick, I understand that a lawsuit can be an expensive process and not entered into lightly but sometimes it's necessary. Just because you file a complaint and serve the other party with a summons, does not mean there is going to be a protracted legal battle. You have to remember what they are in this for, to make a profit and if you have a suit they can not win, where would be the profit for the operator in dragging things out and paying hundreds of dollars per hour legal fees? It may not get everyone paid but I think they could expedite getting you paid. Have you contacted the other non-operating interests, if there are any?
Patrick said:
i have a working interest in 3 wells that have been drilled in McKenzie County (and 3 more that are drilling). first production came online in 10/12, and have seen nothing from Statoil except JIB's. i'd love to hear any opinions on how i can get them off dead center besides a lawsuit. thanks.
There may be title requirements, but operators have also been known to say there is a problem with title when there was not because they really don't want to pay the 18% per annum interest, especially when it has gone on this long.
Timothy J. Moses said:
Amazingly enough, I just received two phone calls from Statoil...on voicemail...advising that there are some title requirements to be completed (before royalty payments are sent).
I definitely got that impression from speaking with Brigham Oil in the past. References to backlog and the new Statoil system that had to be implemented.
thanks for the reply, Mr. Kennedy. i was told about a year ago that ND law does not require WI owners to be paid within the statutory requirement of 180 days (i believe) for RI owners. good idea to contact other non op owners. thanks again.
Amen to that. Yeah, wait for a year and then tell me there are title requirements that are holding up payments.
If my brother got hot under the collar he might want to take his oil in kind. I don't know if you signed an agreement saying you could not do that.
Patrick said:
thanks for the reply, Mr. Kennedy. i was told about a year ago that ND law does not require WI owners to be paid within the statutory requirement of 180 days (i believe) for RI owners. good idea to contact other non op owners. thanks again.