I inherited mineral rights in Reagan some years ago. There are three wells on the lease and a nice check came in some years ago after drilling and fracking. These monthly check from Pioneer Natuaral Resources (was Parlsley) help a great deal in my retierment. It is roughly about the same amount depending, of course, on the cost of a barrel of oil. My most recent check was almost four times the average amount. Looking closely at the statement revealed that many many months of production were from pervious months, even from the middle of last year. Is this a normal practice? Or perhaps have I been systamicaly ripped off? Uncertain of how to proceed.
It is quite common to have adjustments to your statements from prior months for quite a few different reasons. Compare the checks’ list of wells. Do you have some new wells?
Reagan County has such dense fields, it could easily be new wells or pooled units that have been redefined and this is a catch-up payment on updated data.
Operators by law have to review and reconcile production with royalty and working interest payments. A lot of operators do this quarterly although some do it less frequently. These back reconciles catch any issues with production reporting, permitted deductions and taxes. They can at times also include re-allocations across wells in pooled units or at different depths.
If there are significant differences across wells/well groupings or when the info includes more than a year’s worth of data I tend to check in with the operator for any additional information they can share about the look-back but since your check resulted in a positive, you may just want to wait and see what happens in the coming month or two and address if things continue to look odd.
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