NARO currently has chapters in the following states:

• Appalachia
• Arkansas
• California
• Colorado
• Louisiana
• North Dakota
• Ohio
• Oklahoma
• Pennsylvania
• Rocky Mountain (Utah, New Mexico, Montana, Wyoming)
• Texas

A Mineral Owner is an individual who owns the minerals underground and is entitled to receive monthly or annual royalty income from operators producing crude oil and natural gas, not to be confused with the “Surface” property.

A mineral interest is a property interest that is created when the minerals, such as hydrocarbons, are separated from the surface by a mineral deed or an oil and gas lease. While the surface owner can also own the minerals, it is common that in past sales of the surface, the seller reserved the mineral rights and kept them. However, since these owners do not have expertise of exploring minerals themselves, they can lease their mineral ownership rights to oil operators (oil companies).

A mineral interest is a property interest that is created when the minerals, such as hydrocarbons, are separated from the surface by a mineral deed or an oil and gas lease. While the surface owner can also own the minerals, it is common that in past sales of the surface, the seller reserved the mineral rights and kept them. However, since these owners do not have expertise of exploring minerals themselves, they can lease their mineral ownership rights to oil operators (oil companies).

An Oil and Gas Lease is an agreement between two parties (the mineral owner and an oil and gas operator) to allow oil and gas exploration. The lease allows the crew and drilling equipment to access the property and minerals which the Lessor owns. Most oil and gas leases are for a specific period of time, e.g. three years, but if a well gets drilled before the lease expires, the lease usually lasts for as long as the well is producing.

A Division Order is a document which lays out the proportional ownership in produced hydrocarbons, including crude oil, natural gas, and NGL’s (mineral property). Sometimes the Division Order is referred to as a division of interest. More often than not, a single well or lease will have multiple owners.

The division order is sent from the operating company to the mineral owner. The company will request the mineral owner sign the Division Order and return it. In Texas a signed Division Order is required before the company can issue royalty payment. If you have a Division Order, even an old one, it will be useful in knowing what you own. If you are sent a Division Order to be signed KEEP A COPY of what you send them for your records.

A mineral deed is like a surface deed, and is the way mineral properties are sold. It shows who sold and bought the minerals and on what terms.  A mineral deed is different from a mineral lease, in which a lessee has to engage in development  activities and production of oil and gas has to start  during the lease period. Deeds are written many different ways.

Mineral deeds are public documents available in the courthouse in the county where the minerals are located. —Check online to see if your courthouse  in that county has online documents. If they don’t, call the court clerk for information on how you can get a copy of your paperwork.

Mineral leases are agreements between mineral owners and others that provide authorization to look for and remove minerals from specified sections of land.
A copy of the lease may have been filed in the courthouse in the county where the minerals are located. Check online to see if that county has online documents. If they don’t, call the court clerk for information on how you can get a copy of your lease. However, in many cases a full copy of the lease is not filed with the courthouse. Only a summary or “Memorandum” of the lease was filed. In that case, you will need to contact the operator who currently owns the lease to obtain a copy.

It is very common that leases are sold from company to company. Unless your lease restricted the ability of the lessee to sell it, it can usually be sold without your permission. The new owner of your lease should notify you they are your new operator, and will send you paperwork to get you in their accounting system to be paid. If you think your lease was sold or your operator was acquired look at the National Association of Division Order Analysts (NADOA) book of mergers and acquisitions for owner relations contact information.

Selling your minerals is a personal decision. While we generally advocate for mineral owners to hold on to their property to enjoy the benefits of future royalty payments, we understand there may be times where you need to sell some or all of your interests.

Whatever your decision, be sure to find out if any oil and gas activity is occurring near or on your interests. Many mineral owners who accept unsolicited purchase offers don’t realize that the reason that the buyer is contacting you is because a well is about to be drilled.

Even if you are planning on selling you interests, an investment in a NARO membership and the information you will learn, could return a higher purchase price.

An oil and gas lease is a private business contract. If you feel the company you have contracted with has violated the terms of this agreement, your recourse is through the legal channels. The state regulating agency, the local police, related associations (like NADOA, AAPL, OGCC etc) cannot generally help, and you will need to consult an oil and gas attorney.

This can be very frustrating. If you are having trouble getting a reply, send your request in writing, via certified mail. Also look for the “Owner Relations” page (or similar) on the operator’s website for email and other contact information. Many operators try to funnel owner contacts through email only.

State regulatory agencies serve their citizens via:

• Stewardship of natural resources and the environment;
• Setting standards for personal and community safety;
• Support of development and economic vitality for the benefit of their citizens; and
• Regulating when, where and how wells can be drilled and oil and gas purchased.

State regulatory agencies usually do not:

• Fight private legal battles or contact operators on behalf of mineral owners
• Keep deeds, leases or other such documents (Those can be found in the courthouse where your document was filed.)
• Get involved in issues with your royalty payment.