A producing well was successfully completed and I received a Division Order this April. The title examiner placed a title requirement on my interest and suspended royalty payments until curative documentation is provided. Specifically, Grantee agreed to pay $5K to Grantor, his heirs, successors or assigns, payable out of one-half of the oil produced from the royalty interest conveyed. This consideration dates back to 1920's and I don't think any well was ever drilled until now so the issue has surfaced. I suggested the $5K be escrowed, in whatever manner necessary, until the heirs, if any, come forth. The title examiner indicated it is the owner's responsibility to cure the title so I said I'd look into hiring an attorney. The examiner then said he'd look into tracking down the successors, and just recently, said he has located them and is working out details with his attorney.
I know the $5K is available and have been more than willing to assign it to the rightful heirs with alacrity. However, I'm still not sure how much longer this process will drag on.
Is an interest of 6% owed to royalty owner during the curative period once Division Order is issued? Is a certain grace period allowed? I think I read somewhere on this forum that it's 12% for a cured title and 6% for an uncured title of withheld royalties.
Thanks for any input.