Legal Question in Real Estate Law in California
Oil, Mineral, and Royaties Revnues of owned Property
Dear Sir: I have inherited Mineral and Royalty rights my parents property, even though the proprty was sold, I retain the rights. In the 19040's these check came from a large oil companies, beginning with S, and Ch. these checks are no companing from a distrubtion company. Question? This property is from oil in the Los Angeles Tar Pits area, and is drilled on La Cienga, I have been told by several people at cocktails parties, that these oil companies just pay a token, few cents a day, to keep the owners quite, but that we should be reciving thousands per year? How do I begin to check up on
S co, and Ch and thier oil drilling procedures?
Thank you Patricia
1 Answer from Attorneys
Re: Oil, Mineral, and Royaties Revnues of owned Property
In addition to owning these mineral rights, you are undoubtedly a party to (or a successor in interest on) various production agreements and royalty agreements. It is these agreements which determine how much you are entitled to receive. Do you have copies?
The fact that the checks are coming from another payer is not necessarily evil; the major companies may have assigned their rights, may be using subsidiaries, etc. .... but you probably still have the creditworthiness of the original payer to rely on.
Most royalties from producing properties are based at least in part on volume of production. Sometimes, profitability of the production is a factor. In any case, production per well is a matter of public record and it should be relatively easy to audit the accuracy of the payments you're receiving. Keep in mind that these particular fields have been in production a long time and may be close to exhaustion.
You need to consult an attorney experienced in oil and gas leasing but with no conflict of interest due to representing any of the payers.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
