I recently came across several wells in Ward County, Block 33, Section 52 that I think should be leased in the family trust but are not.
I contacted the operating company. They responded with a description of one of the tracts in the lease unit, Palmer 52.
Here is my exchange with them.
Will there be any lease coming up?
Your tracts are held by production (HBP) if the wells are producing.Meaning your leases do not expire .
Do not have any lease now.
The interest is a NPRI – non participating royalty interest.This interest is not entitled to negotiate leases or receive lease bonus.Yes, this interest is HBP or leased.
Why would my interest not be leased?
Shouldn’t there be a lease?
RRC Public GIS says that the wells are not drilled.
By its very nature, Non Participating Royalty Interests do not have the rights to lease as that right is held by the party that retained the executory rights. The NPRI only receives revenue if there is a producing well.
Palmer 52 332H was spud in December 2021 and does not appear to be completed yet. You posted another thread and said you have hired a landman. His title run for Section 52 will trace back to through all the deeds from the creation of the NPRI to your family trust. This will give you both the total NPRI (such as 1/64) and also the fractional ownership of the family trust of the NPRI after any subdivisions over the years (such as your trust owns 1/2 or 1/10 of the NPRI).