IMPORTANT ANNOUNCEMENT - CREATION OF A PERMIAN BAISN GROUP
The site owners have agreed to create a Permian Basin Group so we can post items of general interest to the Permian as a whole rather than using the Reeves County Group as the de facto general bulletin board, or posting the same article in multiple counties. If you have questions particular to an area or county, continue to use that county group. However, if you are interested in following all the deals, news, and developments in the Permian as a whole, I would strongly recommend you sign up. The link for the group is below, and don’t forget to click on the blue square on the top right of the Permian Basin category (in the Topic threads, the link for Watching is at the bottom of the thread) to Watch the group, so you will get notifications. I will start filling in articles that I have accumulated over the past few days. Please look at it!
Permian Basin News of General Interest:
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Chris Wilson here, we have had a lease offer on 750 acres, got to start somewhere $400 a acre Bonus, 20% out of the hole. This is on Relinquishment land, split with State. C’mon lets see what is happening in Crane County. I have seen some $12,000 to $15,000 in Western Ward Country. Thank you in Advance Friends.
Chris
Mr, Caldwell,
My family owns minerals in Crane Abstract 1128 I would like for you to tell me what documents I need to prove to the oil Company that my 1/6 share is not being paid. I believe while we have many wells on this piece of land the new horizontal wells, aren’t paying me 65H and 66H.
And also Abstract 1127 5 wells. My other family received about $5000 last year, but I received $500. Thank you upfront, at 68 I wish I had gone to land man school long ago. I appreciate your knowledge and help.
Chris-
Please contact me as I cannot answer this through the forum.
Hi Chris.
A question: what type of interest do you have? Is it a royalty? A working interest? An override?
It’s also helpful to have a copy of your lease to refer to. Is it a Producer 88? Is your interest a royalty? If so, is it a “free and clear” royalty or is the oil company charging fees for transportation, compression of natural gas, etc.? This all has a bearing on how much you get paid.
The type of interest determines how and when you get paid. It sounds like you might have part of a working interest.
Have the wells been reworked lately? If you’re a working interest owner you are bearing part of the cost of the work.
To verify well production you need the API numbers for all the wells you are supposed to be paid on. With those numbers in hand you can go on the Texas RRC website and look up the production on those wells.
The API numbers do not change over time.
With that data in hand, I would then call the land department of the oil company and have them explain why you are not being paid. I have found that oil companies are often very helpful in resolving these types of issues. It could also be some of the lease issues I mentioned above are eating up your income.
Sometimes it can be as simple as “We made a mistake”. Errors sometimes happen, either on the land side or the accounting side.
You can also look up the permits issued for a well. Sometimes wells are started, or “spudded”, but not completed. Or a permit for the well has been issued but the well has not yet been drilled.
I hope that this information helps you somewhat.
Dear Chad,
My grandfather left this to his 5 kids and second wife. Current Trust papers say that is Overriding royalty. The Crane Abstract 1127 says it’s 1/6 undivided interested mineral interest
.20833333. And overriding royalty. IT’s now to the Grandkids of which I’m the youngest at 68.
Abstract 1128 Crane, Is a Royalty Interest and Overriding Royalty .003125 RI
Thank you for your information, I have been riding these over the past 40 years trying to get the splits all equal for my cousins. They think since I live in Texas, I know it all. Right.
We had to switch banks and mineral managers recently and I read along the way it’s up to the owners of Minerals to get them right and get paid for them, think this was from the 2012 State legislature. Thanks again.
Chris Wilson