I inherited part of my family’s mineral rights located in the Powder River Basin in Wyoming. I have received several calls and letters from different companies wanting to buy my interest. After talking to one company, I found out that in one of the sections they are producing, however when I go to Wyoming Data site, it shows the API is confidential, and when I go to the production link, it shows that they have gotten over 234k barrels and also 174k of gas. The company rep., who wants to buy the minerals, made a statement - I wonder why you have not gotten a royalty check. I called the oil/gas company who leased my rights,who is next to impossible to get ahold of anyone, and when they did return my call, they were very vague and said that there were a couple off approved wells but they have not started drilling yet. I did receive copies of the permits to drill from the company. I am a little confused since I am not in the industry and I have been researching the topics, but Can someone explain to me what a confidential well is and why am I getting all the interest on these rights? They have been in the family since 1920’s approximately and there over 300 acres. Thanks for any help I can get on these subjects! GDB
In my experience, if I get more than one offer to buy my minerals, then a bunch of folks are optimistic that they will make money on my property. Personally, I would rather make that money. In some states, the wells are held confidential for a certain number of months-may be about 24 which varies from state to state. You need to contact the operator to get into pay status as they may need some information from you. It may take six months from first sales to get your first check. The original lease company may know nothing as they were only a contract company. Your hint was in the statement about getting your royalties. With that many acres, you need to be very careful as you have quite a bit of power and many companies might want that big chunk of minerals.
This is the Wyoming GIS site. You may also want to look up the timing of the first production on the state production link.
http://wsgs.maps.arcgis.com/apps/webappviewer/index.html?id=3f7ab99343c34bd3ac5ae6ac8c04d95a/
Slow down and get very informed before doing anything. You want to get into pay status first and then find out if the operator is going to do any more drilling.
Thank you for your input. I will do some more digging before I jump! When I put the section, township and range # in the states website, it comes up with the original lease holder with one API and then another drilling company, with several API numbers in the same section. I appreciate your help tremendously!
Ms. Barnes, I would like to clarify, can the original company who leased the land, contract to another company without letting the family know?
Unless the lease has a consent to assign clause or requires that you be notified, then the lessee can freely sell or assign all or part of the lease to other companies. You can research in the county deed records, either on-line or in person. If you want more informed answers to your situation from members of this group, post the legal description of the land, your lessee and well names or other information.
Yes, it happens all the time. (unless you have a provision in your lease which requires notice)