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Midland, TX asked in Contracts and Energy, Oil and Gas for Oklahoma

Q: What rights do I have as a royalty interest owner in Oklahoma if I haven't been paid my royalties in years?

I'm a royalty interest owner in an oil & gas well in Oklahoma. In 2011, the operator sued the working interest owners and all proceeds from purchasers were put in suspense. (It was set-up for the operator to receive all proceeds & to distribute to everyone). The well has been producing from 2011 to present. Am I entitled to interest or to sue operator?

1 Lawyer Answer
Jim Ed "Jed" Franklin
Jim Ed "Jed" Franklin
Answered
  • Energy, Oil & Gas Law Lawyer
  • Denver, CO

A: You can sue anyone for anything. Winning is another matter. There are not enough facts to fully and faithfully answer your question. However, it does sound like you are entitled to the unpaid royalties, probably with interest. I would start with the current operator and ask them what is going on. It is unusual for a dispute among companies to affect the royalty owners. Normally, a title dispute is what suspends payment to royalty owners. Finally, you want to make an inquiry soon because money that is uncollected for a period of time goes to the state treasury.

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