Once a Lease is signed, how long does it usually take to receive payment? What happens before spudding a well?
Hi Cyndy,
Hopefully you've received the lease bonus already if you've signed. Concerning royalty, it all depends on the term of your lease and the operator's plans. If your lease has a primary 3-year term with a 2-year option then that basically gives the operator 5 years to commence drilling a well. You probably won't be notified when that drilling begins so you'll have to watch for permits on your tract on the Texas Railroad Commission website if you don't live on or near the property. If a horizontal well is drilled it can take several months from the pad being built to the finish. Then, depending on operator, it is a couple to several months before a division order is received where you certify your ownership. At that point is when you start getting monthly royalty checks. It is a game of patience, for sure.