Oil and Gas Lessee Fails To Pay Owed Royalties

This 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.