I own rights on three different leases in Wichita County. These are old, shallow wells on leases that date back to 1910. Old. Waggoner Oil and Gas recently took over production with P66 as the Payor. Waggoner sent me DOs for NGL but not oil since the previous operator transferred it without a DO. To my surprise, we have never been paid on NGL on any of these leases even though they are producing it. Is that unusual? I have been getting offers to buy rights in Wichita County which I thought was odd given the age of the wells and relatively no new activity. The last post here about Wichita County was over four years ago! I hesitate to ask if I would legally be owed payment on NGL dating back to the start of the lease. I just asked it. Anything I should do other than return the DO?
Ken
NGL (products) are derived from the natural gas at the processing plants. Some operators pay the gas and NGL separately and others pay the gas and NGL combined as gas. Most likely your former operator paid the gas and NGL combined and Waggoner is paying separately. Have you been paid on the gas in the past? Is the DO only for NGL or for gas and NGL?
I went back as far as I have statements and the only thing on there is oil. If it’s being paid, it’s never been broken out separately which would be surprising. The DOs are for oil, gas and prd which I assume is NGL.
It is probably just the standard Waggoner form DO which applies to everything, even if the wells only produce oil. Makes it simpler for the company to send out to mineral owners.
Unless I’m missing something, the wells do produce gas - not a lot but there are a number of wells that have been producing for a long time. Leases are First Bywaters, Second Bywaters and B.A. Bywaters. A representative well on B.A. Bywaters is 48583002.
I did find the answer to this. The current Operator is paying on products. The previous Operator just flared the gas. I presume others have as well.