Hi,
I’m an owner and have just received completed copies of the Operating Agreement, as well as my first Joint Interest Billing Invoice. I don’t believe I have received Division Orders, however, my understanding is that at least one well is operating. The folks at Colgate can be hard to reach. Is this a sign that I might start receiving royalties before too long?
Any insight or suggestions would be much appreciated.
Thanks!
Robert Sullivan
it can take up to four-six months after completion for Division Orders to come out.
If you are receiving the operating agreement and JIB invoice, then your minerals are not under lease. You come into pay at the time each well pays out (net revenues exceed all drilling and operating costs). As the King David wells are permitted under MIPA (mineral interest pooling act), you may only be included in a well which is drilled under your tract and not in all of the unit. You (or your predecessor in title) should have received other correspondence and notices from Colgate several years ago about options to lease or not and to be included the unit or or only in the tract. A lot of that information is on the RRC website, either attached to the MIPA order or to the permits.
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