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 David Allen Lilly on April 12, 2016 at 12:27am

I am suspicious of any royalty owner association that seems to totally punt on the issues most near and dear to the hearts of royalty owners.

It's all about the royalties, fair and simple.

When you read the statements you are certain that the vast majority of us don't have a clue if we are being treated fairly.

If NARO doesn't help in this area they are of very little use to me.

IF I desired to form a royalty owners group I would have started there.

Permalink Reply by David Allen Lilly on April 12, 2016 at 12:21am

Sent April 11th 2016, at 7:50 am to NARO:

Hello,

I am a landowner in eastern Guernsey county Ohio awaiting an anticipated June 2016 completion date for 12.5 acres of our property which is included in one of the units.
My goal right now is to learn how to read my royalty statements so I can balance them against my lease terms and production numbers reported to the state.
Very specifically, do these classes teach understanding royalty statements, and do they also teach one the navigation for addressing any shortages with your producer ?
Thank You,
David Lilly
===========================
As yet no response. I wont continue to beat this decidedly dead horse, I hope that our urgings would provoke NARO into a more proactive role in educating and remediation regarding royalties.
Permalink Reply by bo boboski on April 12, 2016 at 10:17am

It costs $$$ to rent space to have all these meetings,pay for speakers. So where does this money come from? Is there a fee to attend? Is this just a way for a certain few to make a living going around having meetings? Are they interested in helping landowners who are getting ripped off?, or is it just a profitable business venture?

Permalink Reply by Barry D on April 12, 2016 at 3:46pm

bo,

A truly landowner organized and operated entity would benefit landowners.

But, there are costs as you have pointed out. It can't be a free ride and I realize that for some that means taking a leap of faith to support such a group financially.

Hey, nothing ventured, nothing gained.

Permalink Reply by Becky on April 12, 2016 at 11:03pm

At the Chapter level, NARO is an all volunteer organization.  The funds for the meetings come from corporate and local business sponsorships. The speakers have all donated their time and talents to share their knowledge of the subject content.  NARO does have a support staff at the National level to assist the individual Chapters, including a lobbyist. NARO publishes a monthly magazine and furnishes printed materials to the Chapters.  NARO also conducts the Certified Mineral Management Course (CMM) at two levels; one for the private mineral owner and the other for professional level managers. 

Go to the NARO website, pick up the phone, dial the phone number on the website and ask all of these questions you all are posing.  The staff at NARO would be more than happy to discuss these issues with you.

Permalink Reply by David Allen Lilly on April 13, 2016 at 12:25am

Why is there not a single word of help on your entire website regarding assisting landowners in receiving their fair royalty ?

Permalink Reply by Jackie Root-CMM on April 19, 2016 at 2:51pm

First I am happy to see that several people commenting are familiar with NARO and some of the chapters like NARO PA. I am President of the PA Chapter and will only speak to our activities.  Our chapter retains the services of Versant Strategies in Harrisburg to lobby on our behalf regarding mineral owner issues in the legislature, with their help we have gained recognition as a stakeholder in the oil and gas discussion and continually work to help legislators understand our issues. On March 15 four of our members provided very compelling testimony on the need to pass HB 1391 that would ensure that PA mineral owners receive at least the  minimum of 12.5% royalty guaranteed by the Oil and Gas Act of 1979. Another priority issue is the establishment of Royalty Accounting Standards, clear reporting requirements and establishment of basic royalty owner rights to clarify production and payment data. A reference was made to my testimony in Washington on April 13; NARO received a request from the Agriculture Committee to speak to the effect of the downturn in the oil and gas industry on the rural economy, I was asked to represent NARO and royalty owners across the country. In addition to this we hold several types of meetings for members and non-members. We just held our 6th Annual Convention in State College, attendees through seminars and networking come away with the tools they need to manage their minerals. Town Hall and Coffee Shop meetings are more local, they also provide education and networking, are free to members, town halls are $20 for non members, coffee shop meetings are free to non members but you have to be invited. NARO doesn't  provide legal representation, won't audit your royalty checks or calibrate your meter but, we will continue to fight to preserve your depletion allowance in Washington, NARO PA will fight for your rights with your help at the state level, we will help you find answers and locate resources to help you resolve issues, we will organize seminars and informal gatherings where you can build your own network of resources to help manage your minerals. The NARO office in Tulsa, OK has a paid staff but our state efforts are all volunteer. NARO PA has a 20 member board that actively participates in this effort because together we are helping each other navigate this complicated world of mineral ownership. So the bottom line is, the information you glean from the website is not there to make you an expert, rather to make you want to join and get the full benefit. Jackie Root

Permalink Reply by Becky on April 20, 2016 at 1:43am

I just read your testimony in the NARO ROAR.  Nicely done! 

Permalink Reply by Jackie Root-CMM on April 20, 2016 at 1:56am

Thank you.

Permalink Reply by rmc on April 20, 2016 at 3:47am
Thanks Jackie quick question was there any meetings in southwest pa in the last 12 months ? Within say fifty miles of Pittsburgh Pa ?
Permalink Reply by Jackie Root-CMM on April 20, 2016 at 4:00am

We had one in Washington PA a year ago, it is time to have another for the new members that joined and potential members. There are 3 directors in the Southwest region to set that up. Send me a private message, we can connect and see what is possible. Jackie

Permalink Reply by searcherone on April 20, 2016 at 6:15am

Thanks Jackie for the great overview of NARO PA. 

  Although I do not live in PA I am grateful that NARO has raised the issue of the 12 !/2 % that landowners are entitled to by law.   It is the same in Ohio and I hope to see the stakeholders in OH working on the very same issue.    Royalty owners are stakeholders and need to stand for their rights.  Thanks again.

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