When you lease your mineral rights to an energy company, you expect to receive fair royalty payments based on the terms of your agreement. Unfortunately, many landowners in Pennsylvania and West Virginia discover that their payments are lower than expected, inconsistent, or missing altogether. Royalty disputes are one of the most common legal issues facing mineral rights holders in the region.
At Kostrub Law Firm, PLLC, we represent landowners who believe they are not receiving the royalty payments they are owed. Our attorneys review lease agreements, production records, and payment statements to identify errors and fight for what is rightfully yours.
Royalty payments are the income a landowner receives when an energy company produces oil or gas from their property. The amount is typically calculated as a percentage of the revenue generated from production, as stated in the lease agreement.
Several factors affect royalty payments, including:
Each of these factors creates an opportunity for error or dispute. Even a small miscalculation in one area can result in significant losses over time.
Our attorneys have handled royalty disputes involving a wide range of issues. Some of the most frequent causes include:
If you have noticed any of these issues with your royalty payments, it is worth having an attorney review your records.
At Kostrub Law Firm, we take a direct approach to royalty disputes. Our process starts with a review of your lease agreement to determine what you are owed. We then compare your lease terms against the actual payments you have received.
If we find discrepancies, we work to resolve them. This may involve contacting the energy company directly, filing a formal demand, or pursuing legal action if the company refuses to correct the problem. Our attorneys have experience dealing with both large operators and smaller producers across the Appalachian Basin.
We also help clients review their division orders to make sure the ownership percentages listed are correct. A mistake in a division order can affect every royalty check you receive going forward.
Pennsylvania law provides protections for mineral rights holders. Under the state’s Guaranteed Minimum Royalty Act, lessors are entitled to receive at least one-eighth of the value of production, free of certain costs. Courts have also issued rulings in recent years that limit what deductions energy companies can take from royalty payments.
Our attorneys stay current with changes in the law and court decisions that affect royalty rights in the state. We use that knowledge to build the strongest case possible for our clients.
If you believe your royalty payments are incorrect or you have not been paid at all, do not wait. Contact Kostrub Law Firm, PLLC at (304) 982-1586 or visit kostrublaw.com to schedule a consultation. We serve landowners in Pittsburgh, Cecil, and surrounding areas in Pennsylvania and West Virginia.
Review your lease agreement and compare the royalty rate to the amounts on your payment statements. If the numbers do not add up, or if deductions seem too high, an attorney can review your records and identify errors.
It depends on your lease language. Some leases allow deductions for post-production costs like transportation and processing, while others require the company to pay royalties on the full value at the wellhead. Our attorneys can interpret your lease and advise you.
In Pennsylvania, the statute of limitations for contract claims is generally four years. However, the timeline can vary depending on the facts of the case. Contact our office to discuss your situation.
Energy companies have legal teams that work in their favor. Having your own attorney levels the playing field and ensures your rights are protected. Our firm has handled royalty disputes since 2006.
If several landowners are experiencing the same payment issues, there may be options for group action. Our attorneys can evaluate the situation and advise on the best path forward.
