Oil and Gas Lessee Fails To Pay Owed Royalties

Oil & Gas ExpertThis case involves a lessee who allegedly failed to pay oil and gas royalties owed to the owner of the mineral rights. According to the landowner, he and the lessee had negotiated a royalty rate of 14%. The lessee claimed that the rate was agreed at only 10%. An expert in oil and gas royalties was sought to review documents and determine the scope of the claims.

Question(s) For Expert Witness

  • 1. Please describe your experience reviewing oil and gas royalties.
  • 2. What materials would you need to evaluate potential claims?

Expert Witness Response E-169784

I am a mineral royalty owner and receive royalties from production in multiple states. I am a partial owner in my deceased father’s multi-state mineral royalty company. I was a mineral manager and negotiated leases on behalf of trusts and estates at a bank for 9+ years. I understand the provisions of an oil and gas lease and know how to read royalty statements from purchasers (gross, net volume, value, price per barrel/mcf). I would need to review oil and gas leases, check stubs (if available), title opinions, division orders, well lists, production/sales reports, state regulatory websites showing well history.


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