Legal Question in Civil Litigation in Montana

oil and gas lease

I signed, notarized, and agreed to lease land for an oil company to drill on. The lease clearly states I get 1/8 royalties on the oil and gas. They drilled a succesful well. They researched the records after drilling was complete, and discovered the county gets 1/2 of our royalties, and a party that retained royalties long ago gets a share. My question is. Is the oil company required to stand by the lease They, and I agreed to, and pay me the 1/8th out of their 88 percent they agreed to keep?


Asked on 10/24/06, 3:02 pm

1 Answer from Attorneys
Roger Evans Mathis & Donheiser

Re: oil and gas lease

They are required to adhere to the agreement they made with you, but I would check it carefully to ensure that you have an entitlement to one-eighth of the entire amount realized. I expect your entitlement may be less than that (for example, 1/8 of the amount received by the driller/ operator) so read the agreement thoroughly. If you do not believe it is being honored fully, consult with legal counsel to secure your rights.

Read more
Answered on 10/24/06, 3:08 pm


Related Questions & Answers

More General Civil Litigation questions and answers in Montana