Unitize Leases but paying by the Tract - Pecos 5400 Devonian Unit

Texas Mineral Rights Pecos County, TX
1

Long story short:

My grandffather drilled and operated a well in Pecos County and Hunt Oil and the operators of various leases unitized their leases into the Pecos Valley 5400 Devonian Unit.

For many years we have been paying JIB (working interest) on the unit and receiving revenue from the unit. Hunt Oil is the operator. There have been several other companies that have been issueing the revenue checks, but most lately it was Samson and currently Enduro.

Enduro paid on the unit production for a month or two and then sent a letter that they were going to pay by the track which has reduced our revenue by about 50%.

We are still paying the WI on the entire Unit.

I have the Joint Operating Agreement from the 50's or 60's and it appears to me that once you are in a unit you share in the unit costs and revenue.

Has anyone heard of this before? Does anyone have a name for an attorney in Pecos County, Midland or Ector County?

Thanks Mike

2

We have worked with Tom Scott from Bullock Scott in Midland. I don't know if they are currently taking new clients but here is their contact information. They have been VERY GOOD to deal with and they are very knowledgeable.

Firm Address

Bullock Scott, P.C.
400 West Illinois Street, Suite 120,
Midland, TX 79701
U.S.A.

Phone 432-683-5501