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Oil/Gas/No royalty payment after 1 year


Hi Mark,

I and 2 family members have an oil/gas lease with XTO Energy in N.D. (157N 96W Sec22).  There is now a well, which we have kept track of, on the NDIC website.  It has been producing since Dec 2012.  My brother called XTO recently and was told they can not begin payments until THEY get paid.  What does that mean? Who is paying them?  Also, we are aware of the N.D. century code that states producer must pay interest on anything after 150 days and is in "breach" of the lease if not paid on time.  Are you familiar with this law?  How exactly is this interest calculated?

Hopefully my questions have been concise.  Any help you can give me would be greatly appreciated.


I don't know the particulars of the joint operating agreement for your well, but that is a big deal.  If you are right, the interest is small potatoes.  This could justify cancellation of your lease, which would be a very expensive problem for a company which has already drilled a producing well.

As for the interest, it is my understanding that interest is calculated at 18%, unless there is a dispute over the title, in which case there is no interest obligation.

Best regards.


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Mark Bonner


Interests include oil and gas leases, mineral deeds, royalty payments, interest on late royalty payments, post-production costs.


I have been an attorney for over 20 years.

Norman & Edem, PLLC 127 N.W. 10th St. Oklahoma City, OK 73103 405-272-0200 (Tel.)

Oklahoma Bar Journal; Oklahoma Association for Justice Advocate

Highest Honors, OU College of Law, 1992 Earl Sneed Award for Oil & Gas

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