Mineral Owner Tips & Considerations in Texas - Is Going Unleased Viable?

Good article, thanks for sharing.

Question: if the wells drilled on the UMO's tract begin to operate at a loss, is the UMO obligated to pay his percentage of the minerals of negative operating cost or can he also treat those negative operating cost as recoverable from production only, well by well. The facts are 19 wells were drilled on a 475 acre tract in which UMO has an approximately 2.34% mineral interest and has come in to all 19 wells after each has paid out but several of the initial wells drilled are now in low production and are operating at a loss. Perhaps these wells will be re-worked or stimulated in some way but now the salt water disposal costs alone dwarf the revenue.

Many thanks for any perspective on this. My goal is to be fair to the operator but prepare for the future in case the economics are upside down for an unreasonably long time for reasons with which I disagree. UMO