MRP 284: Listener Questions - May 2025 – The Mineral Rights Podcast

In this month’s episode, we tackle a diverse set of listener questions submitted by Jim, Greg, Shelly, Sean, Denny, and Christie. Questions range from hedging strategies against oil price fluctuations, to taxation of royalties held in suspense, resolving payment discrepancies, tracking down mineral ownership documentation, and managing working interests.

As before, many of the questions in this episode are covered in more depth in my Mineral Management Basics online course, including how to read a legal description, perform a title search, identify nearby oil and gas activity, and determine whether 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!

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,

I enjoyed Episode 222 with Jared Machen back in November, 2023. I am finally getting around to asking a question that has been on my mind since then. Perhaps he could address it in a follow-up conversation.

Royalty income can be a significant portion of a small mineral owner’s income. While we can‘t do anything about production declines, are there any investment/financial actions that could be considered to reduce the impact of future crude price decreases?

I realize Jared could not give specific investment advice in a podcast, but what general ideas might he provide?

I’d be interested in a range of thoughts specifically for a DIY investor. For instance, from owning ETF’s or mutual funds that are negatively correlated to crude pricing all the way up to buying puts on future mini-contracts on crude oil. How do the relative cost and accuracy of the hedging choices compare to each other?

The calm crude price environment of the past few years won’t last forever, and having some price protection in place may be a good idea.

Thanks Matt for the podcast and your service with NARO.

Take care,

Jim

Listener Question #2

Good information.

Question: Is royalty income taxable to me if I have not signed the division order and the payments have not been paid? (Held in some sort of escrow) Are royalty payments taxed to me only after they are remitted or am I taxed whether or not they have actually been received by me. Texas interest if that matters.

Thank you,

Greg

Listener Question #3

I’m a mineral owner with wells with continuous production, in the Oklahoma Rover Oilfield, they are held, by my grandfather’s 1940 lease. Upon requesting unpaid royalties, I received partial payment for 2021; and 2022, 2023, and 2024 report production to the OTC, but I was not paid. Also, the months I received payment for, my check stub barrels to not match barrels reported to the OTC.

Thanks,

Shelly

Listener Question #4

Hello Matt,

I also retired from Shell (2010 ~ downstream & upstream) and a mineral owner Haynesville dealing with three different operators. I have an operator doing a prior period adjustment PPA reaching back to 2021. Questioned them and said it was about measurement but no explanation other than a reconciliation PPA document that also includes “plant charges” going back to 2021.

Not sure if calibration requirements apply from Title 30 CFR but I think we are getting hosed.

Please tell me about what you do and if you think you can help? I’m open to discussing consulting agreement.

Thanks,

Sean

Listener Question #5

My family has mineral rights that go back several generations on my Grandmother’s side. My Mother is the most recent owner, but I can’t find a copy of the assignment from my grandmother to my Mother OR IF it is registered, where? I have been calling county clerks offices etc. I am now talking to the last oil company that leased from both my Grandmother and Mother, but again I don’t have any copies of deeds or where anything is recorded.

I also need a copy of the assignment so she can sell it to me before she passes away, which is her wishes.

Blessings,

Deni

Listener Question #6

It appears that myself and sister have 50/50 ownership in quite a large area of working interest. This was a surprise to us. My great grandmother worked for and became good friends with the owner of a small oil & gas company. In 1989 & 1990 he gave her several areas in Eddy, New Mexico. We need help! We hired a mineral manger who hasn’t done a thing in 4 months other than regurgitate all the info we found for them. My sister and I successfully found 50 well 38 of which are producing. Plus, we filed all the docs through the county to have them transfers into our name. But it backed such a task and laborious that we decided to hire the mineral manager. Now we’re locked in and all they keep saying is it takes time. Don’t de so pushy with the operators or they will send you to the state then you won’t see any money for 5 years minimum.

It appears that the oil and gas industry is ran a bit like the Wild West. The operators keep saying that we don’t have interest in wells. Then we dig up the proof then they say you’re ok your in the que. it’s a beating to say the least.

I was recently laid off. Days before I had elected to participate in a ton of already producing wells. I have thousands tied up I. This and they want me to pay before they will pay us on wells that have been in pastas for years. Well past 300%. Keep in mind my grandmother owned here since 89 and was never paid in anything. There is a ton in suspense. It’s so frustrating. So many operators and they all play the same games. Why? I have been ready and listening to your podcast. So incredibly helpful. Thank you for that. The industry is so incredibly convoluted and it’s so much to learn, but I’m trying.

Thank you

Christie

Resources Mentioned in this Episode:

Mineral Rights Education

Mineral Management Basics Online Course
National Association of Royalty Owners (For a limited time, use coupon code “MRPODCAST” for $25 off an Introductory Membership. Good only for first-time members).
1-on-1 Coaching with Matt

How Mineral Rights are Valued

Buying Mineral Rights

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

Check out the free form letter I’ve created for you to contact your operator about late or missing royalty payments.

Mineral Rights Research

Negative Royalties / Prior Period Adjustments (PPA’s)

Division Orders

Thanks for Listening!

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