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Issue

Royalty payment and deduction disputes

Royalty disputes usually come down to three things: the owner's interest, the decimal the payor uses, and what comes off before the check is cut. The interest sits in the county records. The decimal sits in the division order and the pay deck. The deductions sit in the check stubs and in the words of the lease. A landman lines the three up on one page.

What the record can show

  • The owner's mineral or royalty fraction, traced from the instrument that created it.
  • The royalty in each lease, and any addendum that changes how it is figured or what may be charged against it.
  • The unit and tract acreage that turn a lease royalty into a decimal.
  • Whether the payor's decimal matches the arithmetic from the record, and where the two part ways.
  • What the check stubs show for volumes, prices, taxes and deductions, month by month.

Documents that matter

  • The leases and every amendment, ratification or addendum.
  • The deeds that created or conveyed the interest, including NPRI and ORRI grants.
  • Division orders, transfer orders and, once produced, the division order title opinion.
  • Check stubs, also called owner statements, for the months in question.
  • Unit designations and plats for pooled wells.

How a landman's work helps

  • Rebuilding the decimal from the instruments and setting it beside the pay deck.
  • Laying each deduction on the stubs beside the words of the royalty clause, so the difference is visible on one page.
  • Finding interests held in suspense, and the reason of record: a title gap, an unsigned division order, an estate never probated.
  • Tables and exhibits a jury can read without a landman in the room.

What to send

  • The well name or API number, and the county and state.
  • The lease or leases, and the deed or chain into the owner.
  • A few check stubs and the division order.
  • Who the payor and operator are, for a conflicts check.

Own minerals and just got an offer to lease or sell, with no dispute yet? Our sister site landman.review reads the offer and the record behind it.

We are landmen, not attorneys. This page describes the land record in general terms. It is not legal advice, and every matter turns on its own instruments.

Ask a landman about royalty payments and deductions

Tell us the county and a line or two about the matter. A landman on our team reads it and answers by email.

Who reads it

A landman on our team. We read every request and answer by email.

What happens next

We check conflicts, then come back with who fits: a landman on our team, or a landman we know who works that county or that kind of dispute. How it works.

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