Fort Worth, TX asked in Energy, Oil and Gas for Oklahoma

Q: Is it legal for an individual to sell a portion of their non-participating royalty interest then distribute the revenue?

Sam has bought Texas and Oklahoma mineral acreage/interest for the past 40 years. Some has become producing and he sells some of his interest to others by executing deeds for them. He does not instruct these "investors" to request division orders directly from the operators by submitting a copy of their recorded deed. Instead, he calculates their owner decimal interest based on his owner decimal interest and sends out revenue reports and checks as he wishes. He is not the operator of these wells and this is non-participating royalty interest.

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1 Lawyer Answer
Richard Winblad
Richard Winblad
  • Edmond, OK
  • Licensed in Oklahoma

A: Buyers should contact the operators directly with the documentation, request Division Orders and provide W-9s.

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