I inherited some mineral rights in WY in the Salt Creek unit. I’ve been sent these required election AFE’s ( what’s that mean?). I know very little about this and they are asking me to approve plugging and abandoning, tubing repair, and to incomplete some formation. What are the consequences of me saying yes or no?
Find out if you are a working interest (WI) partner or a plain mineral owner. If you are a partner, then the AFE (Authorization for Expenditure) is explaining what it is estimated to cost to do the work that is required. You will have to pay your fair share. If you are a WI partner, then ask the operator what your share will be. Is this for just one well or for many wells?
Hi Ms Barnes-
It says Working Interest Owner.
I have had this since 2013. I am just exploring what it all is now. For the longest time, all I got was “bills” and never paid them anything. Then, about three years ago, we started receiving small checks.
1.Am I correct in assuming that when you don’t answer these Partner elections, they go with the majority of the respondents?
-
Then apparently enough money was made and they “paid my bills” and then I started receiving profits above that?
-
These are three separate wells a. 28ARWC2SW36-AFE no. Plug-23200341-0200 plug and abandon b. 30WC2NW02-AFE No. EWO-23201739-0200 Tubing repair c. 01TPSE34-AFE No. CWO-23200230-0200 recomplete to the Dakota formation.
-
I don’t even know what we own. (we-me and my ex each own half)
1). They will go with the majority (most of the time) 2-4- Go read your JOA (Joint operating agreement) or contact the operator for your specific information. Always wise to know what you own and what rights and responsibilities come with it.
WI operators are responsible for paying their fair share of the costs. That includes plug and abandon. Repairing the tubing and re-completing the other two wells may end up with more royalties, so that is good news.
This topic was automatically closed after 90 days. New replies are no longer allowed.