How long (average) from lease to drill to division order to finally, royalty payments?

Oil and Gas Leasing Help
1

Well was drilled and started producing in March of 2009. My mother signed a lease in August, 2008 and my brothers and sisters signed in August of 2009 and we have yet to see any royalty monies. How long does it take to recieve royalties or can they just delay paying you for unknown reasons? Well is the Luicille Jackson Well No. 1 located in the G. Fox A-273 and the C.B. Smith Survey A-782, Johnson County, Texas. Wells 2 and 3 have been approved in March of this year. Has anyone had BAD experience with royalties in Texas ?

Thanks

2

After the initial beginning of production it can take 4-6 months minimum to begin to receive royalty checks.

To the best of my knowledge the only other reason for delaying payment would be if your monthly royalty check was under a certain amount, in which case the company would likely send you a check once the money totals up to a minimum value in order to save money on postage and processing. With different companies this can be different amounts, but the number generally falls between $25 and a $250.

3

Thanks Taylor:

I would like to add that my cousins have been recieving royalty payments since the end of last year? I am the person who gave most of my cousins names to the landmen in the first place as my direct family were the first heirs located by a landman in Oklahoma. But now the last to be paid. I did challange them on some things, so maybe this is a payback.

Thanks again

4

All in our group have signed a lease but the landman has not sent a contract to me and my sister’s heir’s. If they drill on this land and we have not signed a lease is it true that we receive 100% of the royalties after the well is paid for? Also, how much does it cost to set up a well and drill?

Incidently, our property is is Burke County, North Dakota.

5

Dori:

Try this site http://www.allexperts.com Click on Industry then click on Oil/Gas and ask one of the Experts that best fits your problem and they will help you out. You need to be tell them where the land is located and be specific in all your questions, as they need a lot of info from you to make a good conclusion.

Good Luck!! Dennis

6

Dennis Broadbrooks said:

Dori:

Try this site http://www.allexperts.com Click on Industry then click on Oil/Gas and ask one of the Experts that best fits your problem and they will help you out. You need to be tell them where the land is located and be specific in all your questions, as they need a lot of info from you to make a good conclusion.

Good Luck!!
Dennis

7

Dennis,

Thank you. I was able to find an expert to ask about the cost of a well.

All of the experts who could answer questions regarding the lease itself were on vacation.

Dori