I received a division order for a location not covered by a lease. The operator told me I am a non-participating royalty owner. Do I have any right to demand a lease or may I demand participation in the well? The royalty is in Terry County, TX; sec 56, Blk D14 D&P RR Co GB
Dear Mr. Toole,
In a nutshell, Non Participating means that you do not participate in the making (signing) of a lease, do not participate in bonus or rentals. You have a non-possessory interest in the mineral estate.
The pooling transaction in Texas is a cross conveyance of the minerals. However, the mineral owner cannot pool (or convey) your interest. So your decision is to either be pooled or not. There are many posts on this board to help you determine which one is in your best interest.