I own rights in a new well. Mewbourne oil company just sent out checks for the gas portion of the well and said upland exploration is responsible for the oil. Is this common and is anyone else experiencing this?
It is in our case. For each well’s monthly production, we receive a royalty payment for gas from our lessee & a 2nd royalty payment for oil from a separate company with whom the lessee has contracted to market the oil.
This was confusing to me at first because we have no contractual relationship with the oil seller. In typical producer/lessee fashion, the lessee failed to inform us till I asked the question, who in h** are these people?!?
All turned out legit &, in our case, the lessee pays the oil seller out of their end.
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This happens where a smaller companies may prefer for the oil purchaser to pay oil royalties as being more efficient, while the operator pays for gas. I do not know your circumstances, but this happens. You need to still keep track of everything.
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Not common, but does happen depending on the operator agreements. Most likely Mewbourne owns the pipeline.
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I have this happen on most of my properties. The operator sells the gas. And cuts me a check about two months after production. The Oil is paid by the company that picks it up. I get that check the month after they pick it up.
This is the first time for me. Mewbourne has paid me for the gas but upland has not paid for oil. I called upland and they seemed suprised, have not heard back from them.