Hello, I have .00892800 Working interest, .00781200 NRI, and a .00260400 ORRI interests of all wells within a lease in Sec 13 1S 4W of Stephens county Oklahoma covering about 130 acres. Most of the active wells were pooled into a unit in the late 70s / early 80s called the WILDHORSE UNIT. During my transfer I have found that one of my operators, who controls most of this unit, have been paying my predecessor on wells in Secs 11, 12, and 24. These sections all contain wells from this unit. However, during my title search there is no proof of any interests in these sections at all. Furthermore, This operator has producing wells in my lease, but is not paying on them. Has anyone ever experienced this? Is this a normal occurrence with a Unit? Also there are other operators that have producing wells that I am not currently getting any royalties from. How do I approach this and what would be the smartest way to handle this. As always thank y’all for your expertise.
What is the difference between these three types of interest?
This is a great question. I had posted this in a previous thread and I didn’t get a straight answer. I am pretty much finished with the title search. The next step will be handing all of this info to my estate attorney. There is also an oil & gas division of this firm, so I’m sure they will be able to figure it out and explain. As of right now these are the numbers that I have been able to collect from the deeds and operators.
The Wildhorse Unit appears to be a large waterflood. As to your predecessor receiving royalties in adjoining sections, I suspect the Division Order or check listed all the sections in question under the unitization order. Therefore, your predecessor was receiving revenue from any well from any land that was included in the very large unit.
As to the wells you are not getting paid on, you could email the owner relations email address and state you own an interest in the unit, is the well producing, and should you be getting paid for the production.
Tim, thanks for responding. So, if I’m understanding correctly, When wells are unitized you will receive a portion of all producing wells in that unit? I have tried to research this but have come up empty handed. It just seems weird to me that I would be getting paid on production from other sections, while I’m receiving nothing from the wells that are within the lands in the original lease.
As for the other wells, I have compiled a list of the active and producing ones and will contact the operators to get into pay status.