Texas Railroad Commission decides whether or not to prorate Today: watch online

Law & Legal
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http://www.adminmonitor.com/tx/rrc/open_meeting/20200421/

Check your force majeure clauses to determine how a decision from a governing body affects your operator’s obligations to drill and/or produce.

Also check your “production is paying quantities” clauses.

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Thanks for this update, @PaulaKothmann! If I am a mineral rights owner, do these clauses relate to me as well? Or is it only for lease owners? (Or do I as a mineral rights owner automatically own a lease?)

Just inherited mineral rights in permian basin, and trying to understand which of the helpful info here pertains to me, and what doesn’t.

TLDR: If I am a mineral rights owner should I be checking these clauses as well? Or does this not pertain to me?

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if there is a producing unit where you own minerals, then you are held under a lease. If there is no activity in your area and you are not getting paid, there is a chance that you are not under lease.

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Thanks for the clarification. Yes, there are payments, so I guess that means a lease (or multiple, for each producer?) exist.

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Congrats!

The Commission has not yet voted on proration. They want to gather more info and work with other oil-producing states/countries. Next meeting is May 5 I believe.

Often minerals have a lease ongoing when you inherit them, that you want to make sure that you have a copy and study it carefully. It may have been assigned to a new operator but the terms would be the same unless they had been amended. Many minerals may have old leases that were not properly released. You want to get that cleaned up so that when prices rise your title is clear so that you can negotiate a new lease. NARO offers a lot of workshops and conferences.

I would also look for an oil and gas attorney from that area bc they see your neighbors’ leases.

You can find out if you have production by going to the Texas Railroad Commission in TX or its equivalent in other states. You may find some info on that county’s mineral roll as well.

Good luck!

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Thank you so much, I appreciate the information!

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