My mother bought an ORRI in 2001 and recorded it at the county clerk’s office where the well was located. However, due to a health issue, she forgot to send the recorded assignment to the operating oil company, at the time Anadarko. Anadarko sold its wells in this field to Enervest in 2007. I caught the fact she was not receiving her ORRI revenue when I went through her statement as she has dozens of ORRI in wells operated by Enervest. I provided the recorded assignment to Enervest, and the division order analyst stated the interest would be reflected on her next revenue statement. They are not going to net back the individual that was overpaid but rather put the burden on me to contact that person to try and get made whole. Other than suing the overpaid party, does anyone know either case law or some precedent that would place the burden on the current operator to make my mom whole while netting back the overpaid party? Any thoughts would be appreciated, even if it includes brutal honesty regarding my mother’s negligence for not turning the recorded copy of the assignment of ORRI to the operator of record at that time.
Mr. Jaehne,
I think Enervest is making appropriate moves. I am aware of no law, case or otherwise, that puts the accounting burden on the operator sans notice of transfer.
By the way, was a transfer order obtained by your mother at the time of the ORRI assignment?
If this is Anadarko then Enervest, is the property in northern Newton County?
Lee County, Texas. I surmise that her failure to notify the operating oil company reflects her own negligence and therefore she has to live with the results.