MRP 265: Listener Questions - November 2024 – The Mineral Rights Podcast

In this episode, we answer listener questions from Candido, @kidcurry4107, and Kent about royalty deed scams and how to make sure a seller owns what they say they own, forced pooling and becoming a non-consenting mineral owner, how to download offset well data and perform due diligence on an investment, and how to determine interest on late payments.

Some of the listener questions in this episode are addressed in my Mineral Management Basics online course, from how to read a legal description, how to perform a title search, and how to identify nearby oil and gas activity, and how to determine if you should be getting paid on a well.

Thanks again to everyone who left a review or who submitted a listener question! If you have a question about your minerals or royalties, you can send it to feedback@mineralrightspodcast.com and who knows we might just answer it on the air!

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Listener Question #1

Hello, and thank you for your article on the following page: MRP 219: How To Avoid Mineral Rights And Royalty Scams.
I was hoping you could talk about another Gregg County, Texas royalty deed scam. According to my landman, my great aunt was scammed in 1931, when she purchased the royalty deed to a plot of land that had already been sold. Of course, I did not learn of the scam until I presented what I thought to be a valid deed that my mother, who has since passed away, inherited.
Through [my landman’s] research, a runsheet, which I paid for, uncovered unlawful activities of the signatory on the deeds, involving numerous people in various states around the US.
Please talk about this in another podcast and alert me when you plan to do so. Thank you.

Truly,
Candido

Listener Question #2

Hey Matt.We have a lease offer (wyo) that was ‘here is this and if you don’t take it we will force pool you.’ I was wondering what the difference is between force pooled and working interest?

. . . Thanks Matt. I listened to that one also. Loved it by the way! So the other question I was wondering if you could answer is if we elect to participate as a working or non, are we on the hook for any liabilities? Also would we get our full 1/6th out of each of the wells after costs?

@kidcurry4107 (from YouTube)

Listener Question #3

Hi Matt,
Thanks for all the podcasts and the Mineral Management Basics course. They have been helpful on many fronts as I’ve recently started acquiring several Non-operated Working Interests in North Dakota wellbores via AFE participation options. I’ve noticed that most of the listings posted on EnergyNet.com have detailed excel sheets on offset production wells in the area of the subject well. I’ve attached a recent example for your review. How can I find this information directly? I’ve subscribed to the North Dakota Mineral Resources subscription based Scout system, and I can’t seem to find out how to download this full extent of detailed information. Any thoughts or direction would be greatly appreciated!
On a second note, I also listened to the podcast about failure to deliver timely distributions from an Operator to its mineral interest owners. I believe there is a 150 day requirement in North Dakota. One of my first acquisitions has fallen into this category. The AFE was not even sent out for the initial D&C until 6 months after it had already been in production. I acquired the wellbore with this full disclosure and knowledge but also expected the DOTO (Division Order Title Opinion) to be completed within a reasonable time period. We are now 15 months past the first product for the two wellbores, and its my understanding that they will be completing the DOTO sometime in June next month. I’m going to request that the operator pay the penalty interest on the failed distributions. My question is how it is calculated? Is it for the full amount of revenue that has been earned yet since inception of the well? When and how is the 18% penalty interest calculated and accrued? Any thoughts on this front would also be appreciated.
Thanks in advance and I’m hoping to finish up the courses next week. I got half way through them and then got distracted with these other issues.
Kent

Resources Mentioned in this Episode:

Mineral Rights Education

Books

Never Split the Difference by former FBI Hostage Negotiator Chris Voss is THE book on negotiation.

How to Avoid Scams

How to Make Sure You are Getting Paid Correctly

Investing in Minerals and Royalties?

Mineral Rights Research

How to Negotiate a Lease / Pooling

Non-Operated Working Interests (WI)

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