Suggestions for establishing landowner royalty groups to protect against industry shortages and theft

Any thoughts on how to organize a landowner royalty union ?

Starting at the top, I would think that a web site would be necessary, part of it open to everyone to share information and network and part of it closed to the public for sharing more sensitive information.

The second layer might be teaching folks how to read and check royalty statements against the numbers reported to the state and then helping folks go through a process of giving your producer a reasonable and fair opportunity to redress a shortage.

And then a third part would be the legal arm, helping each other get in touch with the right representation to act on your behalf in and court proceeding.

I would think that the site we are using would be eager to get in on the act.

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Permalink Reply by searcherone on April 10, 2016 at 4:43am

And I think this organization already exists and is at work doing the very thing you are advocating for in this post.    It is NARO, the National Association of Royalty Owners.    It is already a national group with chapters representing nine individual states and two chapters representing eleven other states..

http://www.naro-us.org/Appalachia

This is a link which contains the current newsletter of the Appalachia newsletter which chapter covers WV and OH.   The people in this group know how to work in the system, apply the pressure and teach royalty and landowners how to read those statements and how to proceed.

Just sayin' the structure is already in place, but landowners need to join, support and make the organization work.

Permalink Reply by Becky on April 10, 2016 at 5:20am

Searcherone is correct!  NARO Appalachia has been very busy meeting with people, hosting seminars, speaking with legislators, teaching, etc.  We are much more effective when we all work together. 

Permalink Reply by David Allen Lilly on April 10, 2016 at 6:55am

Please show me where either of these two items is addressed in NARO:

1) How to read, understand and verify your royalty statements.

2) How to enter into a dialogue with your producer to rectify any royalty shortage.

Permalink Reply by David Allen Lilly on April 10, 2016 at 6:59am

NARO is what ?

It is certainly not about helping landowners deal with the two most important items, understanding your royalty statements and getting your fair share of the royalty.

I am not interested in going to meetings and hearing someone talk and talk and talk, I want an organization of consequence and action.

Again, if I am wrong please point it out to me, I couldn't find anything other than people getting together to talk.

Permalink Reply by searcherone on April 10, 2016 at 8:43am

David, I do believe you are wrong that it is only talk, talk, talk.

NARO is connection.  My personal story in two meetings is that people with common interests are in the same room together, they make contacts, they get together, they plan what they are going to do and they are doing it.    I don't think you will see on this site all the organizing and lobbying they are doing.  This is a group I believe that has the contacts to make change happen.  

Just hearing a retired petroleum engineer speak at one of these meetings made me understand how just  getting a lawyer or an accountant to fight the battle isn't enough.   Getting your accurate fair share of royalties begins at the well held and a petroleum engineer knows how to decipher the how much and what is coming from the wellhead.

This is in my opinion an organization of action and consequence.  One does have to become active and make contacts with the people in the group.    NARO has contacts, sees a big picture, but will not be seeking headlines for attention..   In PA NARO is presently standing for the fact that the law says a landowner is entitled to one eighth royalty without deductions.   I have urged NARO Appalachia to do the same in Ohio and I only have shallow wells.    Ohio, WV, and PA are newcomers to the business of big time royalties and many of these other states have been fighting the battles a long time and have had laws on the books protecting landowners.   OH, WV, and PA are way behind  on this.  That is why NARO can be effective they are already organized and connected  to each other.   

I now you want a simple quick answer and problem solved, unfortunately it is going to take a lot of hammering by a lot of people and I think NARO is the group to hammer with.

Permalink Reply by rmc on April 10, 2016 at 10:39am
Maybe I did something wrong but I went on their website to have a look etc. the news on the website hadn't been updated since like 2014.
Permalink Reply by searcherone on April 10, 2016 at 12:36pm

There is a Spring 2016 newsletter there.

http://www.naro-us.org/Appalachia

When I tried to go from the link I previously posted I couldn't get there, but just key in the address and it will get you there.   Let me know if it doesn't.

Permalink Reply by rmc on April 11, 2016 at 1:59am
Thanks searcherone I read everything I could find on the website.
Basically what I got is come to one of our workshops or annual meetings. I would be interested in updates on the royality law being pursed in Pa. But couldn't find mention of it.
Permalink Reply by Becky on April 11, 2016 at 2:07am

The NARO PA Chapter puts out regular information on legislative updates to their members. 

Permalink Reply by Becky on April 11, 2016 at 2:13am

Additionally, the National NARO office publishes a monthly magazine for members where you will get pertinent information from all of the Chapters on what is happening in each of their respective regions. 

Permalink Reply by David Allen Lilly on April 12, 2016 at 12:17am

Becky, newsletters are great, but, what specifically is happening to educate and protect landowners and their royalties and what specifically is NARO doing to help royalty owners accomplish full payment of their royalties versus lease terms and market pricing ?

I will keep asking the question although by now I am pretty sure  know the answer.

Permalink Reply by David Allen Lilly on April 11, 2016 at 12:38am

Searcherone,

Fair enough, but where on the NARO website is one taught how to read and understand one's royalty statement's ?

Wouldn't this be a very important aspect of any royalty owners concern's ?

And, if one should believe he has not been fully paid where on NARO is the tutorial assistance leading a royalty owner through the processes of notifying the producer and presenting his case in a manner that is most to his endeavor ?

Wouldn't these two aspects of any royalty owner be at least a top 5 concern to be addressed ?

What happens at the well head is fine, but, how do you proceed from there, do you have to attend further meetings and seminars to get to the nuts and bolts ?

Does any of this make any sense ?

I am all for networking but my main concern is that I understand my royalty statements balanced against my lease terms, and then if there is a shortage (which I am constantly assured of) how do you deal with that unfortunate and very difficult scenario ?

I am quite sure that most folks cash the checks for fear of the unknown's regarding their royalty term's, and this is my direction to be explored.

So, I ask again, has your group provided ANY assistance to a royalty owner in accomplishing what I am sure are the two biggest concerns ?

I am afraid newsletters and coffee don't cut it.

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