Our mineral rights are leased to an oil/gas corporation. Last year, oil & gas were discovered on the property and has been in production for about 9 months. Since then, a “commigling” clause has been instituted. We have received lease payments again this year but no signs of Royalty payments. I have searched Sonis for information but come up with blank reports on our particular rig following rig name, serial number, location, lease number, etc. How do I find more information on a particular lease?
What does held by production mean? The lease is on my late grandmother’s property and my mother gets 1/8 of royalties and lease. I am inquiring on her benefit. The company representative speaks of commigling. Our property covers a scant corner of the whole lease. Don’t know what a division order is. There have been recent deaths in the original 8 heirs but the last was at least 6 months ago.
Chase said:
Joann,
“We have received lease payments again this year but no signs of Royalty payments.” The fact that you received a lease payment would in most cases mean your lease isn’t HBP (Held by production).
Are you sure that your property is situated within the boundaries of the unit?
Did you sign and return a division order?
Chase
The below is the production figures from the BIG HUM RA SUA;LL&E well (Serial 238143) spud 09/17/2008.
Report Date Oil Prod(bbl) Gas (mcf) 01/01/2010 2923 89547 12/01/2009 3960 105905 11/01/2009 3822 101940 10/01/2009 4494 108322 09/01/2009 4081 103945 08/01/2009 3940 100259 07/01/2009 4007 104386 06/01/2009 3986 97668 05/01/2009 1623 40322 04/01/2009 3223 95368 03/01/2009 2930 92861 02/01/2009 2824 85302
Commingling refers to drilling different depths and/or formation from a single well. Primarily for economic reasons, it may be determined that one well, completed in two different depths will adequately drain the formations. The cost of drilling one well may be significantly less than drilling two separate wells.
It appears to me that your well is a “single completion”. The well has not been ‘commingled’ to include a different depth/formation.
Follow this link and search wells by serial number. You can also view images from the well file associated with this well. Using the same link, under the Content Management heading, click Document Access (you may want to view the tutorial first.