Representing Landowners All Over Ohio
In an era of unprecedented profits within the oil and gas industry, the American royalty owner is 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 compensation claim.
Are You Being Treated Fairly?
Producers have a responsibility to behave as “reasonably prudent operators.” Unfortunately, often the Producers fail to obey many expressed and implied covenants in their leases, operating agreements, and unit agreements, which may ultimately result in gross underpayments made to the royalty owner.
When producers fail to act as a “reasonably prudent operator,” the following catastrophic consequences may occur:
- royalties worth thousands or millions of dollars go unpaid;
- mineral estates are depleted, wasted, or destroyed;
- surface estates are damaged or polluted beyond remediation