Mineral Rights Royalties are a payment to people who own land enriched by the presence of valuable minerals like gas and oil for the right to extract those minerals for refining and eventually sale. Gas and Oil companies will offer riches for the very chance to do so. Because the oil and gas are on your property, you can enter into a contract which allows the company to set up a drilling operation, extract, transport, refine and sell the oil and gas they obtain. The companies would then pay the landowner a percentage of the value of the extracted materials.
There has been a growing frustration among landowners in contracts with oil companies because they notice that their royalty checks are not the dollar amount that was expected. When this happens the Gas and Oil companies will attempt to show you how the money was spent with complex calculations and deductions, or by delaying and even withholding payments. Some of these practices are merely unethical, others are illegal. If you’re not getting the royalty payments that you are expecting you should consult with an attorney right away to review your contract and make sure your rights and money are protected.
There is a common perception that disputing with a large oil company would not be worth the trouble because they have comparatively infinite legal and financial resources at their disposal to fight your case. Unfortunately, this perception is causing rightful owners of mineral royalties to take less than they should be getting, and even getting nothing in some cases! Don’t let that happen to you. By consulting an attorney experienced in mineral royalties you can protect your rights and even recover lost earnings.
If you are in a contract with an oil company, ask 3 Questions:
- Are you a landowner that suspects the oil company that is extracting minerals from your property is underpaying or cheating you out of your full payments?
- Have royalty payments stopped coming in, or have there been long delays or lapses in payment that resumed at a later time?
- Are you invested in exploration/extraction activities and have lost money?
If you answered yes to any of these questions then you may be entitled to file a claim for lost revenue or damages.
If you are a business involved in an oil or gas royalty dispute or any type of business litigation, contact the team of Carabin Shaw at 800-862-1260 day or night, 7 days a week for your free consultation.