How are disputes related to royalty interests resolved?

In Georgia, disputes related to royalty interests are typically resolved through mediation or arbitration. In mediation, the parties meet with a neutral third-party mediator in order to attempt to reach a mutually-agreed upon resolution. The mediator is not an authority and does not have the power to make a binding decision, but they can help the parties come to an agreement. If mediation fails, the parties may pursue arbitration. In arbitration, the parties present their arguments to an arbitrator, who is an authority figure appointed by the court. The arbitrator will consider both parties’ evidence and issue a binding decision. If either mediation or arbitration fails, the dispute may be brought before the court. The court may hear expert testimony, review documents, and consider various other pieces of evidence in order to determine a fair resolution. The court’s decision is binding and cannot be overturned unless there is clear evidence of an improper proceeding or a lack of evidence to support the decision. In some cases, oil and gas disputes may also involve regulatory agencies, such as the Georgia Environmental Protection Division. If the dispute involves environmental concerns, the regulatory agency could consider whether the parties are in compliance with environmental laws and regulations. If a violation is found, the agency may require the parties to take corrective action in order to resolve the dispute.

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