A few years ago, I inherited some royalty interests in Gaines County and I wish to gain all the knowledge I can about these holdings. I’ve found many useful research places on line and find lots of info but don’t know what it all means. So here goes my first question -
I have gone to Texas File and found all of the leases I have been paid on. Then I go to Texas Drilling and look for wells on that property. So if I find four producing wells, does that mean I should be paid on all those wells. I look at my check stubs and see only one unit listed. Could they be combining the well payments? Or is it possible to be paid on just one well?
Sorry for the dumb questions but I’m trying to learn!
Suzanne those are good questions. It is possible that the wells have been pooled or unitized into one payment. It is also possible that the other wells have leased or allocated areas outside of your leased area. Or it is also possible that the other wells are operated by another operator who doesn’t have your contact information. It’s rare, but you could have been missed, too. It often takes a little time to understand how things got to be where they are.
In many cases in Texas the wells are paid on the entire “lease” so all wells are combined on one payment. Other states pay by well and list them individually unless they are in a pooled unit. The easiest way to find out it to contact your operator and ask them how they are paying. Send a certified return receipt letter to the Division Order analyst. They are “supposed” to reply in 90 days. Not a dumb question at all!
Make sure that the operator has all of your contact information and that they have you in “pay status”. They may require some probate or title information. Also make sure that you have filed all your contact information and probate or title information in the county where the minerals are located. Each county has a particular form for that.