MRP 273: Listener Questions - January 2025 – The Mineral Rights Podcast

In this month’s episode, we answer a diverse set of questions submitted by Anna, Robbie, @dnk4559 (via YouTube), Edith, Karen, Tracy, and Brad. The discussion covers important topics, including property tax protests in Texas, surface rights conflicts in Oklahoma, inheritance issues with division orders, how to calculate your decimal interest, royalty payment calculations in Louisiana, and working interest complications.

Many of the 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!

If this has been helpful, please take a moment and leave us an honest rating & review on Apple Podcasts. This feedback really helps keep us going and helps make sure that we are putting out content that is tailored to your needs.

Listener Question #1

Matt, how would you protest the taxes charged on my minerals, that are nearly as much as the revenue I’ve received? Do they know something I don’t?

Thanks,

Anna

Listener Question #2

This is all good and fine, but if you inherit mineral rights, etc., on land you don’t own in Oklahoma, you can’t get the minerals without negotiating with the surface rights owner. My neighbor has never let a mineral rights owner drill a well on his property for over 15 years.

Robbie (Left as a Comment to the YouTube Video for how to Use the OK Corporation Commission Website)

Listener Question #3

What are the rights of the division order signee? Our father passed over two years ago. All required documents have been sent to the operator but over nine months have passed and all requests to have division orders sent to my siblings and I have been ignored. Probate was completed some time ago. All docs have been filed in the county where the wells are located. In chambers county, TX.

@dnk4559 (via YouTube)

Listener Question #4

Hello Mr. Sands,

I am a fairly new Louisiana mineral rights owner (landowner) with questions about the way my royalties are being paid. I followed your podcast and the calculations you presented are specific enough that I think I can do them, but I cannot find the Drilling Spacing Unit for my property. Can I get your help in determining that number?

Secondly, one of the lessees prepared my 1099 showing the revenue amount before they deducted taxes and other expenses (which they did not identify what those expenses entailed) so I am left to pay taxes on approximately $10k more money than I actually received. My question is: How can I determine if this is correct reported amount or not (revenue before deductions or revenue after deductions)? Which amount should I be reported to IRS for tax purposes? Who is the authority on that kind of decision?

I hope the information I am sending is clear enough for you to understand my questions. If you feel that further information is needed, please do not hesitate to contact me.

Edith

Listener Question #5

I own 40 acres in the Haynesville Shale, and I am receiving royalty payments from Tellurian (for a bit longer) and SWN. My most pressing need is to get my hands on the formulas used in computing revenue statements.

Karen

Listener Question #6

Hello, thank you for the podcast, I have learned a lot.

I have a question about taxes on condensate in Texas. I have a 5% working interest in a well and they withhold taxes out of my interest on both the gas and condensate. The amount withheld on the gas roughly matches what is on my statements and the Texas Comptroller’s site but the Comptroller’s site shows the tax rate on the condensate as 0 and the tax due as 0. The purchaser is listed as the primary tax payer on the condensate, not the operator. Is the condensate tax due and paid reported somewhere else or being paid by the purchaser and perhaps I shouldn’t be charged for that if my operator isn’t paying it. Just curious if this is a question you could answer and maybe help myself and others.

Thanks,

Tracy

Listener Question #7

Thank you Matt, I do have a question in case you have time for it. We are no longer receiving payments for a year or so for a .08% working interest on a lease that must have been earned by my father, a geologist, now deceased, exchanging his expertise for the interest owned by an old friend, the producer who is also deceased. We dropped the ball when we didn’t notice the stop; which could have been due to our failure to notify of mailing address change, or possibly the payer was unsure of correct current owner due to effects of estate administration. Since this began, the producer sold this lease to another producer whose behavior is the same, that we still receive our monthly share of expenses, but no income. I believe we could been given the run- around when asking the payers. We have been given several reasons which don’t add up, especially being ongoing for many months. Production records show nothing has changed, and producing similarly to past years. While not a lot of income, it has been more than the $100 minimum needed to accumulate prior to issuing check as suggesting one time when I called. Other reasons given “getting things rapped up from selling, and the tax season for the CPA who does their books, says it will happen after that, that was last April. I will much appreciate any ideas. Thank you.

Brad

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 Make Sure You are Getting Paid Correctly

Mineral Rights Research

Non-Operated Working Interests (WI)

Property Taxes

Natural Gas Production Tax (Texas Comptroller)
Crude Oil Production Tax (Texas Comptroller)
Texas Comptroller lease tax search: CONG – Login
MRP 128: Investing in Minerals and Royalties with Jarrett Kitch
MRP 146: How Mineral Rights and Royalties are Taxed in 2022

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