Mineral Revenue

Texas Mineral Rights Panola County, TX
1

XTO is listed on PCTA Tax Statement as the operator on the Owens Wells. We receive XTO Revenue Statements on these wells We also receive Revenue Statements on these wells from TRNG.

PCTA list these wells as a group on the Tax Statement. Both XTO & TRNG list them separately on the revenue statements.

Question 1: Why is the Decimal of Interest on these wells not the same as the following documents indicate?

The Decimal of Interest .00177 listed in #52085, Bk: DR, Vol.: 275, Page: 570 Lelma Boatman (deceased grandmother) Last Will & Testament Doc: 149890, BK: DR, Vol: 1558, Page: 673, and Betty Boatman (deceased mother) XTO/ExxonMobil Subsidiary Transfer Schedule ‘A’ Date of Transfer 06/04/2020 …which shows Transferor Decimal : .00176639 and Transfer Decimal .00035328 Owens Well 3: AB 427 Moorman A Survey API: 365 31360 Parcel ID: 2171407 PCTA Lease: 24765 Category Code: G1 – Oil & Gas Royalty Interest: .00035328 Operator: XTO (DOI Decimal .00026582 for NGL, RES, FLB TRNG (DOI Decimal .0002241884 or .0000591725 for RES, & .000217529 or .0000591725 for PLP, Field: Carthage (Cotton Valley), RRC # & Dist. Lease: 06 109756 On Schedule: Yes

Owens Well 4: AB 427 Moorman A Survey API: 365 31664 Parcel ID: 2171407 PCTA Lease: 24765 Category Code: G1 – Oil & Gas Royalty Interest: .00035328 Operator: XTO (DOI Decimal .00026582 for NGL, RES, FLB, & .00035328 for CON TRNG (DOI Decimal .00021397957 for RES, .0000591725 for PLP Field: Carthage (Cotton Valley), RRC # & Dist. Lease: 06 117007 On Schedule: Yes

Owens Well 5: AB 427 Moorman A Survey API: 365 31664 Parcel ID:2171407 PCTA Lease: 24765 Category Code: G1 – Oil & Gas Royalty Interest: .00035328 Operator: XTO (DOI Decimal .00026582 for NGL, RES, FLB, & .00035328 for CON TRNG (DOI Decimal .000216613 for RES & .0002309158 for PLP
Field: Carthage (Cotton Valley), RRC# & Dist. Lease: 06 141735 On Schedule: Yes

Owens 6: AB 427 Moorman A Survey API: 365 32619 Parcel ID: 2171407 PCTA Lease: 24765 Category Code: G1 – Oil & Gas Royalty Interest: .00035328 Operator: XTO (DOI Decimal .00026582 for NGL, RES, FLB, .00035328 for CON TRNG (DOI Decimal .0002365744 for RES, & .0002228732 for PLP Field: Carthage (Cotton Valley), RRC # & Dist. Lease: 06 142528 On Schedule: Yes

Question 2: Why does the PCTA have these wells grouped together within this Owens Unit?

Question 3: Why do the statements show that both XTO and TRNG pull the same product (ie. Condensate) from the same well, in the same month, with different prices? Why do the interests rates vary every month between both companies and between the products taken from the well?

Thanks for any and all input, Babby

2

Looks like you may have split sales with these properties. This occurs when more than one party has an interest in your lease and they elect to market the oil, gas, and NGL separately. Looking at the volumes sold each month on the particular well may help you with the determination. Te aggregate sales should be close to the sales reported to the RRC. Contact me if you need some more help.

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3

Thank you for your information. Is it common for both operators to pull, let’s say, condensation from the same well in the same month?

4

When going to RRC, do you inquire to Well Logs or Production for aggregate sales?

5

You will look at production. The RRC is about 2 months behind an reporting, but it will give you an idea when you match up production months.

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6

How do I go about finding the agreement between XTO and TGNR concerning the split sells?

7

This topic was automatically closed after 90 days. New replies are no longer allowed.

8

The product is referred to as condensate or NGL. This not common, but it does occur. An example is Company A owns 75% of the well and Company B owns 25%. They decide to separately market their percentage of the production from the well. If they produce 1000 barrels of oil in the month then A markets/sells 750 barrels and B markets/sells 250 barrels. However, both are required to pay your royalty percentage of the sales from of their efforts. This can create differences in the unit price for the product that is marketed.