I have mineral rights on a producing oil well that is now fracking. I was the only one out of 125 people who never signed a lease. I spoke with an attorney who said that I’m not entitled to royalties, but am now like an owner/operator. Any suggestions on where I should go from here? I have 1,300 acres of mineral rights.
Do you have a property description or survey number?
If they are a co-tenant of your minerals, they can technically unitize your acreage without having you leased. The only way you’d be entitled to the royalties as an unleased mineral owner is if the drill bit trespassed on your property. If the drill bit did go through your minerals, you’d be a non-consent party and just pay your share of the drilling costs.
It’s Arhopulos Caldwell 1H in Brazos County, Texas. I believe paying my part of the drilling cost would be the best thing to do rather than get royalties. What do you think?
Does the drill bit go under your property or is your property just unitized? Sounds like you are going nonconsent, which as a mineral owner is the ideal situation if someone drills on you without a lease. Problem is if they infill drill that unit on other tracts you won’t be entitled to the royalties.
How can I find out? I have documents that describe my mineral rights location, I just don’t know how to read it correctly without months of research.
What is the property description?
Property Name: Operator: County and State: CALDWELL1H Arhopulos - Caldwell 1H Lonestar Operating, LLC Brazos County, Texas Property Description: 1,360.46 acres, +/-, out of the Samuel Davidson Survey, A-13, and the James Hope Survey, A-22, in Brazos County, Texas, more particularly described as reflected in official public records of Brazos County, Texas. TX RRC. LSE # 04224 - API # 42-041-32450.
So if you own an interest in the whole unit you should be going nonconsent, meaning the oil company receives a certain amount to recoup the well costs then after payout you participate as a working interest owner.
I’m just still confused. I understand that I should go nonconsent, I just don’t understand what I’m entitled to for payment.
You should get a cut of your portion of the royalties after payout, should the well be economic. If it is not economic you won’t receive any.
It’s a producing well of oil, gas, and water. They have also started fracking. How can I find out what my percent is? Lonestar hasn’t responded.
You’d have to either run title, be patient, and wait for the Joint Interest Billing from the operator, or if you have a letter they sent you offering to lease telling you what your interest or net mineral acreage is, you can back into the number. Running title is your best choice to develop your own opinion on what you own rather than trust their research.
Thank you. I will try to run title. So if I didn’t sign a lease, I’m considered an owner/operator?
If the drill bit passes through your property, yes.
And if it doesn’t? What will I be entitled to? Nada?
Nada unless they lease you and pool your lease.
Have you heard anything about the recent activity in Brazos?