My grandpa got papers from an Company called Petro-Hunt LLC.
We know nothing about how any of this works. Please help
Bree
Brianne, are you non-consent and unleased under the well?
The operator is supposed to try and lease you, if you don't agree to be leased, the operator is supposed to offer you participation for your part of the well. The operator should have sent you an AFE (authorization for expenditure) with an estimate of the well costs, because you have to know what you are investing in, you would have 30 days to reply. If you did not respond to the participation offer you are non-consent by default.
If you are non-consent, you should receive a 16% royalty from the first barrel of oil, the other 84% of your oil goes to pay for your part of the well and a 50% penalty of the actual cost of drilling the well.
I'm sure that statement forms vary from company to company but the ones I have received have the initial balance, and the costs broken down. On my statements if the number has 100 next to it, it is a dollar for dollar charge against my production, if it has 150 next to it they are taking out 100% of my part plus the 50% penalty.
Something all payout statements should have in common is the remaining balance at the bottom, when that reaches 0, your 16% checks become 100% less the cost of production.
Oil companies sometimes get things out of order. I will ask some questions that will help me to understand your situation better so we know we are comparing apples to apples.
1. Did someone try to lease you?
2.Did the operator send you the AFE and participation offer?
3. Are you currently receiving royalty checks from this well.
4. Have you received a division order?
5.Have you received a force pooling notice?
I am also going to send you a friend request so we can converse in private, I doubt that there is anything you need to keep confidential in this situation but I realize that you probably have no way of knowing that yet. When you get some understanding of what is going on it's alot less stressful. Look forward to hearing more. Robert
What kind of papers and where are the minerals located?
Brianne, if you were leased you should not receive a payout statement, but mistakes get made.
Brianne, I hope you will let me post what I have shown you in the future after you get things settled with the operator. I think it would be enlightening to others.