More questions:
What about stalling by the Analyst/Operator?
What are the steps that the Division Order Analyst takes to get me into pay status? The Operator will have an attorney run a Division Order title opinion that takes all owners back to state patent grant. This can take months for hundreds of owners. If you recently inherited, then you need to contact the DO for what documents they need such as probate, death certificates, affidavits of heirship, etc.
Are current royalty recipients listed somewhere? The operator has a pay deck which gives every owner and their percentage. The data is not particularly public. If you are a legitimate owner, you will get a statement of your royalty receipts, but only yours.
3.Is current cu ft of gas production on a well listed somewhere? Yes, most states have the gross production for oil and gas listed.
Does the Operator recoup costs first before royalty payments? The sales of products are made and royalty owners are paid. The operator gets about 75-80% of the royalties. The drilling costs are spent by working interest owners before royalties. Any post production costs can be shared between mineral owners and working interest owners depending upon lease language.
Do mineral owners receive payments for CO2, sulfur, condensate, crude oil?…….or, for that matter any minerals pulled? Mineral owners receive payment for the products listed in their lease language. Yes, many minerals can be extracted out of the production stream. Who owns which ones is determined by lease language and state statute.
Most operators do not deliberately stall. They are usually short staffed, dealing with multiple wells which may have hundreds to thousands of minerals owners, so getting each division order correct is quite time-consuming. They are supposed to be finished according to state statute or they have to pay interest for late payments.
Thanks M Barnes…Every newbie should read these opinions.
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