Sorry, I'm not using the correct language I'm sure. Any info on those of you that have current wells and are getting rolalty checks. How long have you been getting them? I understand it can be months until they start paying but once they start what is the average monthly check amount?? Thanks and God Bless! kathy
Kathy to put it shortly, long time, maybe 30- 40 years of primary production, longer if they drill more wells a decade or decades from now. Then there is field unitization and secondary recovery, I think CO2 injection will be promising for 20 more years after. Remember, nobody wants to buy to lose money. If it does lose money they will take the tax write off but they would still rather make money. Odds are good that your minerals will make alot more money in the next 60-70 years than they are offering.
Kathy, I don't know exactly how many acres you have and your well is so new nobody can say what it will be producing in a year. I think it likely you could get more than $1,000 per acre per year possibly more. I certainly wouldn't sell without collecting the first several months checks in a lump sum. I would suggest you keep it for a year and then ask yourself if you would like to sell it or wait for the next new well to be drilled.
RW, thank you for your advice. I appreciate it! It's 960 gross acres, but that's not the net. It's confusing because my sister and brother and I all get the same amount on the current lease which is up after 2013. So I think it is 3.79 net or 3.39 net. So maybe we each have 3. something? Thanks much. K
r w kennedy said:
Kathy to put it shortly, long time, maybe 30- 40 years of primary production, longer if they drill more wells a decade or decades from now. Then there is field unitization and secondary recovery, I think CO2 injection will be promising for 20 more years after. Remember, nobody wants to buy to lose money. If it does lose money they will take the tax write off but they would still rather make money. Odds are good that your minerals will make alot more money in the next 60-70 years than they are offering.
Kathy, I don't know exactly how many acres you have and your well is so new nobody can say what it will be producing in a year. I think it likely you could get more than $1,000 per acre per year possibly more. I certainly wouldn't see with collecting the first several months checks in a lump sum. I would suggest you keep it for a year and then ask yourself if you would like to sell it or wait for the next new well to be drilled.
Kathy, if you have a well, your lease does not expire, it goes on for as long as oil and gas are produced and after production stops, it last for a continuing operations clause period of usually 90, 120, 180 days or a year after the producing well/s are abandoned, assuming you signed the lessees lease form.
That makes sense. I guess I wasn't thinking that through. So whatever we leased it for in 2010 goes forward until production stops and then after 180 days or more. Thanks RW. K
r w kennedy said:
Kathy, if you have a well, your lease does not expire, it goes on for as long as oil and gas are produced and after production stops, it last for a continuing operations clause period of usually 90, 120, 180 days or a year after the producing well/s are abandoned, assuming you signed the lessees lease form.
Wells there can produce from a few months (actually I have seen some dry holes there) to wells there that are still producing after 50 plus years, depends on many factors and there are not a lot of wells making $1000 per acre per year at least not after the first year. r w can tell you how long it can take to start getting a check as it can take anywhere from like 4 months to, I believe he didn't get paid on some for years. If you do sell make it that day as the affective date and not from first run.
Thanks Mineral Joe, I appreciate your info. When you say make effective that day. You mean the day a person verbally says yes to making a sale? Kathy
Mineral Joe said:
Wells there can produce from a few months (actually I have seen some dry holes there) to wells there that are still producing after 50 plus years, depends on many factors and there are not a lot of wells making $1000 per acre per year at least not after the first year. r w can tell you how long it can take to start getting a check as it can take anywhere from like 4 months to, I believe he didn't get paid on some for years. If you do sell make it that day as the affective date and not from first run.
Kathy already has 3 months production from her well as of December and it produces a fair amount of gas and won't require a pump right away. Not much chance of a dry well. I already gave Kathy the speech on getting paid, down to the date of first sales, that the operator has to pay within 150 days of or he owes interest if you have marketable title. Kathy has told me she has deeds in her name so it shouldn't be a problem. You are right that I should have said for the first year Joe. Wells do decline. New wells drilled in your spacing can make a positive difference also. Thanks for catching that Joe. Just for fun, if Kathy remembers, maybe she can tell us how much she made per acre for a year, if she doesn't sell.
I had only seen where the interest was in ND but now see there was a lot more posted somewhere. Non Bakken wells many times will be dry holes and Bakken wells around the outer edge have been basically dry. The effective date is the day of transference of rights to them, it can be made as early as first run or the day they give you cash or next year even.
Hey, Guys -
Just one quick comment, as you seem to have Kathy's questions well in hand.
There are hundreds upon hundreds of wells in Louisiana and East Texas that have been producing for in the neighborhood of 100 years. Not very much anymore, only a barrel or two a day, but they are still producing.
Charles
Thanks Charles! I'm glad to have your comments. God Bless! Kathy
Charles Emery Tooke III said:
Hey, Guys -
Just one quick comment, as you seem to have Kathy's questions well in hand.
There are hundreds upon hundreds of wells in Louisiana and East Texas that have been producing for in the neighborhood of 100 years. Not very much anymore, only a barrel or two a day, but they are still producing.
Charles
Mineral Joe, thank you. Kathy
Mineral Joe said:
I had only seen where the interest was in ND but now see there was a lot more posted somewhere. Non Bakken wells many times will be dry holes and Bakken wells around the outer edge have been basically dry. The effective date is the day of transference of rights to them, it can be made as early as first run or the day they give you cash or next year even.
In my heart I know I'm on a mission. Even though my Dad and his family are passed, I feel a calling to keep going and finding out more about my mineral rights in ND. Yes, I'd love to start getting paid, my siblings too, but I'm taking action and I know by taking action I will see results in my favor! I really do appreciate the input and knowledge I'm given on this forum. God Bless! Kathy
I have 60 acres that I am not getting paid for and it is coming up on a year. All wells and areas are different and the Hugoton wells up here by me are probably around 100 years and going but most long living wells are just dead money making like $1 per acre per year, I could find more loose change in my couch that that and it's tough getting them to let it go or develop the field.
I tried calling Continental a few days ago. I never heard back. Anyone else have experience with them? Since the section we have a part of has a well on section 35, I want to narrow down the red tape or paper work and be persistant to get some answers as far as my siblings and myself getting lined up for payment. K
Kathy, you are about due for a division order and either payment or they owe you interest since you have a deed in your name. I have never found nor has anyone ever shown me a law that says the operator must pay a lessor, saying they owe interest is not the same as saying they must pay. The only remedy is to sue if they simply refuse to pay. Some say to put language that the lease terminates if royalty is not paid for any reason, I think 99.999% of people will not have such language in their lease, because the operator would resist such language.
Kathy, I would say to make an inquiry as to when the operator thinks they will be paying. The operators always claim they are short staffed. The reason they are short staffed is because they haven't hired enough people. They are short handed because they don't care.
Kathryn Ann Rossi said:
I tried calling Continental a few days ago. I never heard back. Anyone else have experience with them? Since the section we have a part of has a well on section 35, I want to narrow down the red tape or paper work and be persistant to get some answers as far as my siblings and myself getting lined up for payment. K
Joe, are these the acres with the title problem?
Mineral Joe said:
I have 60 acres that I am not getting paid for and it is coming up on a year. All wells and areas are different and the Hugoton wells up here by me are probably around 100 years and going but most long living wells are just dead money making like $1 per acre per year, I could find more loose change in my couch that that and it's tough getting them to let it go or develop the field.
It entirely depends on the well and the formation. I have some old wells that are on top of oil bearing formations that got tilted vertically, and they have been producing for years...since the 1950s...on the other hand I have a newer well that is on its last legs after a couple of years. So there are many variables. The big new horizontal wells decline very rapidly...big checks at first then a rapid decline to a low level that will sustain maybe 10 years depending on the well. The average monthly check depends on the number of acres you have your royalty rate, and the well production.
Kathryn....how many acres do you have..what section and township? Do you know the well name?
Thanks Bob for your comments. It's 161N range 97. partial sections in 26,27, 34 and 35. My sister and brother have the same # acres. My Dad and his siblings had 11.25 mineral acres they inherited. One uncles's widow sold his rights. So we have my Dad's and some of my aunt's, plus another uncle I'm trying find out info on his will, and if he had one. So right now we each have 3.79 plus .54 of my aunts in I believe sec 34.
RW checked it out for me. There is an active well on 35 plus a confidential permit on 34. What does confidential mean in the oil field talk?
Thanks. Kathy
Bob Titley said:
Kathryn....how many acres do you have..what section and township? Do you know the well name?