An oil company has told someone that while calculating interests the DECIMAL point was put in the wrong place so overpayment followed. How often does something like this happen and what are the normal outcomes ?
Tks;
John
If they overpay you and the well is still producing, they will ask you to pay it back or if the money is spent they will hold your royalty until the books balance. There is a statute of limitations on unpaid royalty and that being the case I believe there is a statute of limitations on over payments, but I don't believe that would stop them from trying to get all of the overpayment back. I believe that you would probably have to get a lawyer and sue in that eventuality. In the situation you have right now, you should probably visit with an O&G lawyer.
Dear Mr. Morgan
The normal outcome is that the royalty must be repaid. However, there are a lot of "if's" involved in the correct answer.
Best
Buddy Cotten