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Revenue 2018-03-01T22:42:45+00:00

Mineral Owner Services

Making sure that royalties are paid correctly is the most important service I provide.  To do this, the Division Order Title Opinion is checked for accuracy and lease terms are reviewed to verify compliance. Further, your check stubs are compared with the Railroad Commission’s data for accuracy.  If discrepancies are found, your operator will be contacted to try and correct the issue or issues. A list of services offered is as follows:

Mineral & Royalty Ownership

  • Check to see that asset ownership is correct.
  • Determine the type of asset, is it a royalty or mineral interest?
  • Correct any errors found in the property description.
  • Verify that all the acreage is properly unitized.
  • Verify that your unit royalty percentage is correct.

If my research finds a title or ownership issue, I will work with the operator to correct it. I was recently involved in the recovery of $1.4 million in suspended royalties and unpaid bonus considerations in the Permian Basin.  In the same project, I found that what was believed to be a royalty interest was, in fact, a mineral interest. As a result, three new family members are now in pay status in two new horizontal units.

Title Opinion Errors

  • Review the percentage and type of interest set out in the Division Order Title Opinion.

Title opinions are usually correct. However, mistakes are not uncommon. I recently determined that a title opinion had been paying the wrong people for over 50 years. In another instance, it was found that the pay-deck the operator was using was not paying royalty owners according to the title opinion or the record title. Again, there are the three 14,000’ wells on a client’s NPR interest, which was not mentioned in the title opinion.

Royalty Monitoring

  • Monthly reports reviewing royalty payments are provided, tying the operator sales to Railroad Commission sales figures.
  • Railroad Commission maps are reviewed to see if new or old wells are affecting your acreage.

I found that three 14,000’ wells were drilled on a new client’s acreage. Unfortunately, the oversite was not found for ten years, that’s quite a bit of lost revenues and has been difficult to resolve.

Curative

Correcting Issues

If my research finds a title or ownership issue, I will work with the operator to correct it. I was recently involved in the recovery of $1.4 million in suspended royalties and unpaid bonus considerations in the Permian Basin.  In the same project, I found that what was considered to be a royalty interest was, in fact, a mineral interest. As a result, three new family members are now in pay status in two new horizontal units.

Units

  • Advise as to whether joining in a unit is advantageous.
  • Is all your interest listed in the unit?
  • Are you being paid correctly?

I recently found three units where my client’s non-participating royalty was not listed in the title opinion and not in pay status.  This was not found in a timely fashion and was difficult to resolve. It is easier to resolve a problem early in the process.

Lease Issues

  • Is there a legal issue that needs resolving?

I work with seasoned oil and gas attorneys who can provided legal advice.

Monitoring

Monthly reports reviewing royalty payments are provided, tying the operator sales to Railroad Commission sales figures. Railroad Commission maps are reviewed to see if new or old wells are affecting fiduciary acreage. I earlier mentioned finding the three 14,000’ wells drilled on a new clients acreage. Unfortunately, the oversite was not found for ten years, that’s quite a bit of lost revenues.

Title Opinion Errors

Title opinions are usually correct. However, mistakes are not uncommon. I recently determined that a title opinion had been paying the wrong people for over 50 years. In another instance, we found the pay-deck the operator was using was not paying royalty owners according to the title opinion or the record title. Again, there are the three 14,000’ wells on clients NPR interest, which was not mentioned in the title opinion.

Change

Trusts needs change over time. Oil and gas holdings may serve the first and second generation. However, the interest of succeeding generations may need another financial vehicle. Management of oil and gas properties takes constant review. Oil and gas resources deplete over time, and a more stable revenue stream may be better for the trustors.

Time to Sell

  • Trusts and individuals needs change over time.

Oil and gas holdings may serve the first and second generation. However, the interest of succeeding generations may need another financial vehicle. Management of oil and gas properties takes constant review. Oil and gas resources deplete over time, and a more stable revenue stream may be better for the trustors.

Marketing

  • Mineral and royalty interests are packaged in understandable formats.

The easier it is for the large marketing companies to present the product, the easier it is to sell. The better the presentation, the easier it is to wring maximum value out of the asset.