I received a letter from them saying they have acquired the assets from Titanium. They further state that they will only pay when the amount is $100 or more. Nothing about paying at least once a year. The only well that I have listed from Titanium as having royalty interest is Henson. Since I inherited this from my Uncle, I have no other information. My question is can they arbitrarily decide how much to pay and when? A further question is how do I get more information on the Henson well? I have no record that Titanium paid any royalty on this well for the last 5 years, so I suspect it was be no longer producing, so why would Ventana be interested in it? Thank you, John Mann
The standard amount on most Division Orders is $100. However, the amount can be changed by sending a replacement Division Order and requesting $25 or $50 and an annual payment. What Section, Township and Range in Grady? There are many Henson wells in OK. You could look up the well on the OTC tax site but you would need to narrow it down. Depending upon the status of the well, the new company may want to work it over and recomplete or are holding it for deeper reservoir potential. https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
Regarding the annual payment - unless there is some other agreement in force, operators must distribute royalties at least as often as required by the Oklahoma Production Revenue Standards Act (52 OS 570) as set out in Section 570.10(3):
a. Proceeds from production may be remitted to the persons entitled to such proceeds annually for the twelve (12) months accumulation of proceeds totaling at least Ten Dollars ($10.00) but less than One Hundred Dollars ($100.00). Amounts less than Ten Dollars ($10.00) may be held but shall be remitted when production ceases or by the payor upon relinquishment of payment responsibility.
b. Proceeds totaling less than One Hundred Dollars ($100.00) but more than Twenty-five Dollars ($25.00) shall be remitted monthly if requested by the person entitled to the proceeds. Amounts less than Ten Dollars ($10.00) shall be remitted annually if requested by the person entitled to the proceeds.
c. Before proceeds greater than Twenty-five Dollars ($25.00) may be accumulated, payor shall provide notice to the person owning interest as defined in Section 570.2 of this title, entitled to such proceeds that there is an option to be paid monthly for proceeds greater than Twenty-five Dollars ($25.00). Such notice to the person shall also provide directions for requesting monthly payment, and constitutes notice to all heirs, successors, representatives, and assigns of the person.
I think the amount --if any–is too small to to do much about! I wanted to alert others to a potential problem if they have the same letter. Thanks for the advice. The only information I have on the well is that it is named Henson.
Thank you for the information. Since I have had no activity for the last several years, I can’t do much about it. I did want to alert other royalty owners that the payments can be much less than the $100 and must be paid at least annually.
I did search as you suggested and found three Henson wells in Grady county, one was plugged, the operator listed was Concho, the well was shut down in 1989, so maybe it is this one–I wait and see. The other two are active, but Titanium was not listed as the operator. Thanks for the advice. John
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