Selling Royalties

Anyone have an opinion on selling a portion of my royalties to a group so that they can fight for fairer treatment? It seems everyone is complaining about unfair deductions and low royalties.

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Permalink Reply by Barry D on July 4, 2015 at 2:25pm

Bert,

There are plenty of competent O&G attorneys that will represent your interests more effectively than a partner.

And, in the end, in the case of problems with royalty payments, you and your "partner" will be hiring an attorney to deal with the issue anyway. So why bring in the partner? Just deal with the issues yourself with an O&G attorney you trust

Permalink Reply by David Allen Lilly on July 5, 2015 at 5:28am

I didn't say that Bert.

I said a lot of things that you didn't respond to, why would you respond to something I didn't say ?

Permalink Reply by Bert Ault on July 5, 2015 at 1:16am

Anyone have a report of being satisfied with your royalties?

Permalink Reply by David Allen Lilly on July 5, 2015 at 5:32am

The thing about this site is that once folks start getting royalties they are rarely heard from again.

Complicating matters is the various lease terms that are not provided in regards to low royalty payments.

All I can tell you is what I intend to do, which is hold onto every bit of my royalties for as long as I live and then pass them to my children when I die. Once we start getting royalties I will have a competent CPA look over the payments versus lease terms and the market and decide if I am getting what my lease calls for.

If not I will retain legal counsel and go from there.

Mike MurphyPermalink Reply by Mike Murphy on July 5, 2015 at 2:31pm

those companies trying to buy your royalties wont become your partner .....they are buying so they can flip them to someone else and make a profit ....then somebody else will own the royalties and they wont give a rats butt about you and your royalties ......any attempt to recover more royalties will take an attorney and they wouldn't be paying for you to be represented by their lawyers you will have to have your own ........selling your royalties is just that they pay you and then they do whatever they want to with them and you do whatever you do with your part so if they fight and get more that more would be for the royalties they own and they are not going to run and tell you what they got .........so don't hope for a partner because in this business they don't want partners

Permalink Reply by Barry D on July 6, 2015 at 3:08pm

David,

Good point; it appears that most people that are being cheated had bad leases.

If someone with a good lease is being cheated I have to ask why. Why aren't you doing something about it to make the company live by the terms of the lease.

Permalink Reply by Bert Ault on July 6, 2015 at 1:05am
It seems we are stuck between a rock and a hard place. If we don't sell say 50% we will only get 50% or less of the fair value anyway. I saw one on here recently that had 61% deductions. I don't think lawyers will be any fairer than the oil companies.
Permalink Reply by Barry D on July 6, 2015 at 3:06pm

Bert,

Do you believe the mineral buyers are going to allow themselves to be cheated?

No, they lawyer up.

What proof is there that a royalties owners group ia any mote effective than your own personal lawyer or accountant/representative.

For example - Keith has a post for a new Sponsor.

Permalink Reply by George on July 6, 2015 at 1:06am
Bert, ask yourself why would someone want to buy your mineral rights if they were worthless?
Permalink Reply by Bert Ault on July 6, 2015 at 1:14am
I know they are valuable, but who watches the oil companies to see we are getting our fair return from our minerals? They have hidden landowner percentages from the others in the unit and sell to themselves at low prices and then make deductions whatever they feel like. This is what I see on here everyday.
Permalink Reply by william Allen. Ladd on July 6, 2015 at 1:25am

to sell your oil and gas rights or royalities is like selling a  classic car to a teenager. The kid wants to see how fast it will go. One day a week later he totals it. No more car. If you had kept that car a few year longer, its value is very likely to go much higher if you kept it housed and in good condition.

Bill L

Permalink Reply by Bert Ault on July 6, 2015 at 1:36am
I agree Bill but the car seems to be in someone else's garage. How do we get it back?

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