I am new to this forum but I would like to know the basics. Okay our family leased the mineral rights. They claim they are drilling and are done drilling and well is pumping. Now some paperwork has to be done. I don't see any permit was issues when I look on the site. Should I see a permit for our exact descripton of mineral rights? Whiting said they are done drilling and it is now pumping. Once paperwork gets done, then royalties will come. So my question is, how much does a well usually pump? What kind of check are we talking about in general? Any info would be helpful. Thank you.
First, you should be able to find a drilling permit application filed by the operator prior to drilling and the application will indicate the location (Township/Range/Section). If the well was drilled and completed and currently pumping, this could be a "confidential" well and they have a six month period to report the production. Second, wells produce various numbers as to the BOPD. It is somewhat a guess as to the number of barrels a well will produce but you can review other well figures in the immediate area and sometimes get a ballpark figure. Your royalty amount will be based on the amount of production, your % royalty (per lease contract), the current price of oil and the amount of net mineral acres you have in the lease.
If the well was drilled and completed and currently pumping, this could be a "confidential" well and they have a six month period to report the production.
First I've heard of this. Are there any legal requirements for a company to keep the production confidential? And would the confidential status be posted anywhere on the Texas RRC website?
Why would a company want to keep the production confidential ... maybe because they're still leasing the area and they don't want people to find out how valuable their minerals are?
If a well is confidential, it is illegal for the State agency to divulge downhole information until the six month period is over. In regards to the Texas Railroad Commission website, I'm not familiar with their website as I deal solely with the North Dakota Industrial Commission and the Montana Oil and Gas websites. Your statement about the confidential status of a well is correct in that it keeps competitors in the dark.
Joe:
In the case of a confidential well, you will begin recieving royalties when the well is off of confidential status. Your royalty will include all sales of oil and gas from the well.
I’m also new to this forum. I don’t have an answer to the question at the top. I have some questions of my own, but I’m not sure where or how I should ask them.
Mr. Thomas, There is a search function near the top of the page that may be helpful as there are alot of members here that may have had similar questions to yours in the past. If you can’t find the answers you need, it may be best if you start your own thread. You also could start a thread for each question, putting each one in the section that seems most appropriate to get the greatest response. The more information you can give about each question, the better the answers you will get. Welcome to mineral rights forum.
Max Thomas said:
I'm also new to this forum. I don't have an answer to the question at the top. I have some questions of my own, but I'm not sure where or how I should ask them.