In an era of unprecedented profits within the oil and gas industry, the American royalty owner is still very much at risk of being unfairly compensated by the Operators and Producers who routinely fail to pay fair royalties.
Sometimes Producers make underpayments to royalty owners simply because of the complexities involved in today’s oil and gas leases and related agreements. However, often Producers blatantly fail to pay fair royalties. In either case, the royalty owner has a legal claim for compensation.