Held By Production - Texas Royalty


#1

I receive a royalty check every year that is unbelievably small. When I take the check amount and divide it by my royalty percentage, it shows gross annual production of maybe $200.

Is there an established threshold of where the well is no longer economically viable and what rights might I have?


#2

Have you reached out to the operator and asked why they have not plugged the lease? If this lease is not unitized for secondary recovery, it may be in the process. This is just one way the operator can continue a leasehold. If this property is already in secondary recovery, waterflood, then I would contact the operator. If they are not going to give you a response on the phone, send them a certified letter and they will need to respond within 30 to 60 days.