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post #1 of 14 (permalink) Old 12-19-2013, 05:27 PM Thread Starter
M70
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No royalty payment.

Looking to educate myself prior to taking on the battle with xto.
For the first time in as long as I can remember we did not receive a royalty check on a old lease. Was TW Phillips, then Phillips Production and now XTO.
When we did not receive a check in late November we contacted XTO via Email and were told that "The wells were not producing enough to be economical and there is no royalty check for Nov. or Dec." They were looking into ways to reduce the "lifting Cost" and were not sure when another check would be issued.
I just came from the wells and two of the four are off and two are producing. I can understand not receiving royalties for the two wells that are off but why no payment for the two producing wells? 1/8 is the royalty along with free gas to the house.
I have never seen original lease so I cant comment on the language in it. Where would I find a copy of the lease? I would estimate the TW Phillips lease was entered into in the early 1950's.
Thank you in advance, any info, links or experience would help educate me in this matter.
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post #2 of 14 (permalink) Old 12-19-2013, 08:31 PM
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Re: No royalty payment.

if your royalties checks were small I wouldn't say a word cause soon the lease will be null and void and you will be free to lease to another company if they shut them off because the lease will no longer "be held by production"

take a kid hunting and fishing it will keep them out of trouble
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post #3 of 14 (permalink) Old 12-19-2013, 09:32 PM Thread Starter
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Re: No royalty payment.

Lately aprox 300 to 400 per month. Not getting rich but enough to pay the taxes.
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post #4 of 14 (permalink) Old 12-20-2013, 12:24 AM
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Re: No royalty payment.

Some companies have a minimum for royalty check issuance.

If your production is under that for the month then that month will roll on to the next month's payment.

demokraten saugen
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post #5 of 14 (permalink) Old 12-23-2013, 02:20 AM
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Re: No royalty payment.

If those wells are from the fifties and still throwing gas your lucky.
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post #6 of 14 (permalink) Old 12-23-2013, 08:45 AM
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Re: No royalty payment.

First thing you should do is read your lease.....
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post #7 of 14 (permalink) Old 12-23-2013, 11:01 AM Thread Starter
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Re: No royalty payment.

To clarify, the lease was entered into in the early fifties, but they plugged the original well and punched four new ones about 6 years ago. All on the original leased ground.
I would love to read the lease. Where would one find it? Court house? What office? Would a attorney be needed? I will be getting into this after the holidays. Thank you
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post #8 of 14 (permalink) Old 12-23-2013, 01:59 PM
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Re: No royalty payment.

Should be recorded in the Recorder of Deeds Office of the county the property is located in.
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post #9 of 14 (permalink) Old 12-23-2013, 07:22 PM Thread Starter
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Re: No royalty payment.

Thank you, I'll check it out.
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post #10 of 14 (permalink) Old 12-24-2013, 01:43 PM
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Re: No royalty payment.

M70 - I would telephone XTO directly, and ask them for a copy of your lease. I do not know much about that type of lease, but it sounds offhand to be a rather long lease if it's original terms and conditions still apply after 60 years or so, and after being assigned to several successor companies. In addition to making sure that you are receiving the contracted royalty payment, you'd want to determine if the lease, as originally written, is still applicable.
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