How are disputes related to royalty interests resolved?

Royalty interests are legally established contractual arrangements between an oil and gas lessee and a mineral owner, granting the lessee rights to extract oil and gas resources in exchange for payment of a royalty to the mineral owner. In Tennessee, disputes related to royalty interests are resolved by following the terms of the parties’ contractual agreement. If the parties cannot agree on the dispute, either party may pursue legal action to resolve it. The burden of proof in claims involving royalty interests rests with the party bringing the claim. The party must provide evidence to support their assumptions and demonstrate that the terms of the agreement were violated. For example, if a mineral owner claims that the lessee is not paying the contractually agreed upon royalty, the mineral owner must provide evidence of the agreement’s terms and demonstrate that the lessee has failed to meet its obligations. It is important to note that all royalty interests in Tennessee are subject to the jurisdiction of the Tennessee Oil and Gas Board, which is authorized to investigate and resolve any disputes related to royalty interests between parties. The Board has the authority to interpret the agreement, make determinations, and issue orders. If necessary, it can also refer the dispute to the courts for resolution.

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How are disputes related to royalty interests resolved?

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