Frustration with leasing and royalty process
Frustration with the leasing and royalty process is a common issue for mineral owners. There are a number of factors that can contribute to this frustration, including:
Leasing vs Development expectations (more wells, royalties)
Mineral owners often have different expectations than operators when it comes to the timing of lease and royalty payments. Mineral owners may expect to see more wells drilled and more royalties paid, while operators may be more focused on the long-term development of the property. This can lead to frustration on both sides.
Inconsistent and declining royalties
Royalty payments can be inconsistent, and decline over time. This can be due to a number of factors, such as the price of oil and gas, the production rate of the wells, and the costs of operation. This can be frustrating for mineral owners, who may be counting on royalty payments to supplement their income.
No updates from operator
Operators may not always provide regular updates to mineral owners. This can be frustrating for mineral owners, who may want to know what is happening with their property.
Paperwork and taxes
The paperwork and taxes associated with mineral ownership can be complex and time-consuming. This can be a burden for mineral owners, who may not have the time or expertise to deal with it.
Mineral Ownership issues
Mineral ownership can be a complex issue, and there may be disputes over who owns the minerals. This can lead to frustration for mineral owners, who may not be able to get the royalties they are entitled to.