Shut in Royalty

Texas Mineral Rights Tarrant County, TX
1

I was recently told by Vantage that the well in Fort Worth, Wedgwood on the corner of 820 and Granbury Road is shut in and those owners of minerals rights should be expecting a royalty check on or about December 24, 2011. From everything I have read online, shut in royalties seem modest pay outs at best, some stating that they are getting $1 per acre or $45 per day of shut in, but I want to ask if anyone understands the actual calcualtions based off my actual contract. "If for a period of ninety consecutive days such well(s) are shut in or production there from is not being sold by the Lessee, then Lessee shall pay an annual shut in royalty of $100,000 per well (to be allocated pro-rata based on the net mineral acres of Lessor in the unit for such well(s) on or before the end of said 90 day period and thereafter on or before each anniversay date while the well(s) are shut in or production there from is being sold by the Lessee."

I have been told that the well was commenced on Aug 17, 2011 and the rig pulled on Sept. 24.


I own .728 mineral acres, does anyone know how to calculate and which date to possibly go by Aug 17 or Sept 24 to get an idea of the size of check that I should expect in December?

2

Dear Chi-hye,

I have about the save acreage and I received a $10 shut in bonus. Now I was told that this was a payment to me so that the company has time to build and transport the gas to market and my check gives up to a year to do it, however my good friend who did the deal in the neighborhood said we should receive our first check by March.

So we wait and see. This is the only shut in check I have received from any of my homes that are leased.

Chris

3

Does your shut in clause have the same $ stipulation as mine? It seems like it should be a lot more if they break it down to $100,000 per mineral acre, annually. Thanks for the reply, when I get my bouns check in December, maybe I can let you know if hit the jackpot, lol!

4

I see that the pipeline to move gas from this well to market is nearly installed now. Curious to see how long it will be before we start seeing real royalty checks.