Oil and Gas Lessee Fails To Pay Owed Royalties

Case Overview

This case involves a lessee who allegedly failed to pay oil and gas royalties owed to the owner of the mineral rights. According to the landowner, he and the lessee had negotiated a royalty rate of 14%. The lessee claimed that the rate was agreed at only 10%. An expert in oil and gas royalties was sought to review documents and determine the scope of the claims.

Questions to the Energy expert and their responses

Please describe your experience reviewing oil and gas royalties.

I am a mineral royalty owner and receive royalties from production in multiple states. I am a partial owner in my deceased father's multi-state mineral royalty company. I was a mineral manager and negotiated leases on behalf of trusts and estates at a bank for 9+ years. I understand the provisions of an oil and gas lease and know how to read royalty statements from purchasers (gross, net volume, value, price per barrel/mcf).

What materials would you need to evaluate potential claims?

I would need to review oil and gas leases, check stubs (if available), title opinions, division orders, well lists, production/sales reports, state regulatory websites showing well history.

About the expert

This expert has 30 years of experience in the energy industry. He gained his BBA in petroleum land management at the University of Oklahoma. He has worked extensively as a landman and oil and gas consultant in Oklahoma, Texas, Colorado, and Montana. Currently he is a managing member and consultant at a royalties company in Montana.