I own mineral rights in Ward County, Texas. They were part of the sale to Shell from Chesapeake earlier this year. I received timely royalty checks from Chesapeake ever since the well was on line. Since Shell took ownership they have had to shut in one well at least twice. This month I received no royalty check at all and when I called Shell to inquire about the reason they said my royalty payments have been put in suspense with a code of "act" as the reason. No one has returned my call as to what I need to do to get paid for this month's oil and gas share. My wells are in Finley 1H and 2H. I am not sure what to do to resolve this problem. Any help is greatly appreciated.
Typically the word "suspense" is used when there are royalties due, but the company is holding on to them pending the resolution of some sort of issue (heirship, title, need of correction deed, etc.). However, you have also said that the well has been shit-in. I'm not entirely sure from this why your checks have stopped. You should ask them to provide you with more detailed reasoning in writing.
Thank you. They are preparing something in writing.
Austin Brister said:
Typically the word "suspense" is used when there are royalties due, but the company is holding on to them pending the resolution of some sort of issue (heirship, title, need of correction deed, etc.). However, you have also said that the well has been shit-in. I'm not entirely sure from this why your checks have stopped. You should ask them to provide you with more detailed reasoning in writing.
Shell now owns the wells that I originally leased to Chesapeake. They want tens of thousands of dollars returned because the original title opinion was not correct, according to Shell. But they have suspended all future royalty payments. The original title work proved I owned the mineral rights with 2 other people. The original title work was done by Chesapeake. Now that Shell took ownership they are saying 8 more people have ownership too and Shell says they are out of pocket because they have to pay the other 8 people their share of the royalties that Chesapeake already paid us. So now all royalty checks will be split 11 ways even though we have signed DO that say differently. The well is no longer shut-in. If a legal opinion was followed by Chesapeake how does Shell change that now? How do I believe these new eight people are legitimately entitled to anything?