Oil & Gas Division Orders and Royalty Disputes
Young & Husain, P.L.L.C. understands the complexity of disputes that arise over oil and gas royalty distribution. Our law firm represents landowners in disputes over the terms, calculation, and payment (in kind or cash) of oil and gas royalties pursuant to an oil and gas lease or a division order. If you are a royalty owner who wishes to recover past-due or unpaid royalties, or if you are involved in a gas or oil dispute over your royalty interests, contact us today toll free at 877-521-8900.
When problems with a division order or other royalty payment problems occur, our oil dispute lawyer can help. The industry has the potential to generate huge profits for all involved. Individuals and businesses involved in the process are often careless, if not deceptive, with other people's money.
Oil & Gas Lease and Division Order Conflicts and Pricing Issues
Royalty disputes can arise when the royalty provisions of the oil or gas lease and the division order are in conflict. For example:
A lease may require the use of proceeds to calculate the royalty payment while the division order requires the use of market value to calculate the royalty payment.
A gas or oil lease may express the royalty interest as a certain percentage or fraction of production (e.g., 1/3 of production) while the division order expresses the royalty interest as a different percentage or fraction (e.g., 1/5 of production).
The valuation price in the oil or gas lease are in conflict (e.g., the lease pricing is based upon interstate regulated prices while the division order is based upon intrastate regulated prices).
Oil and gas royalty owners should be able to expect accurate and timely payment of royalties. While some oil payment disputes are the result of oversights, honest mistakes, and royalty clause conflicts, many times failures to pay royalties are the result of the deliberate and deceptive actions. For example, where a division order calls for payment at a "posted price" (the price the buyer is willing to pay) at the time the oil is captured, the buyer could harm the royalty owners by deceptively setting the posted price below market value.
Resolving royalty conflicts and division order disputes often requires thorough analysis of the facts, careful review of the language of the division order and the oil or gas lease, and the application of complex laws, division order statutes, case law, and other rules which govern oil and gas royalties. Our lawyer will work diligently to protect your right to receive fair compensation for your oil or gas royalty, including reviewing the applicable documents, statutes, and case law to determine whether the division order is valid/enforceable, to be used to clarify the royalty clause, or to replace the royalty clause.
When problems with a division order or other royalty payment problems occur, our oil dispute lawyer can help. The industry has the potential to generate huge profits for all involved. Individuals and businesses involved in the process are often careless, if not deceptive, with other people's money.
Oil & Gas Lease and Division Order Conflicts and Pricing Issues
Royalty disputes can arise when the royalty provisions of the oil or gas lease and the division order are in conflict. For example:
A lease may require the use of proceeds to calculate the royalty payment while the division order requires the use of market value to calculate the royalty payment.
A gas or oil lease may express the royalty interest as a certain percentage or fraction of production (e.g., 1/3 of production) while the division order expresses the royalty interest as a different percentage or fraction (e.g., 1/5 of production).
The valuation price in the oil or gas lease are in conflict (e.g., the lease pricing is based upon interstate regulated prices while the division order is based upon intrastate regulated prices).
Oil and gas royalty owners should be able to expect accurate and timely payment of royalties. While some oil payment disputes are the result of oversights, honest mistakes, and royalty clause conflicts, many times failures to pay royalties are the result of the deliberate and deceptive actions. For example, where a division order calls for payment at a "posted price" (the price the buyer is willing to pay) at the time the oil is captured, the buyer could harm the royalty owners by deceptively setting the posted price below market value.
Resolving royalty conflicts and division order disputes often requires thorough analysis of the facts, careful review of the language of the division order and the oil or gas lease, and the application of complex laws, division order statutes, case law, and other rules which govern oil and gas royalties. Our lawyer will work diligently to protect your right to receive fair compensation for your oil or gas royalty, including reviewing the applicable documents, statutes, and case law to determine whether the division order is valid/enforceable, to be used to clarify the royalty clause, or to replace the royalty clause.