I just received a lease agreement from XTO Energy. It is in Marion County WV. It is a little over 2 acres at $800.00 per acre with a royalty payment of 12.5 %. These 2 acres are part of 150 acres owned by other family members. How is the royalty payments distributed? How do they determine the royalty payment? Does the natural gas have to be found exactly on your 2 acres or do they look at the whole 150 acres?
How is the lease worded? Is it just for the 2 acres? Is there mention of the other acreage totaling 150?
I don’t have the lease with me right now but it mentions the 2 acres that I own and what they are offering per acre but in a separate document, it does mention the 150 acres and the surrounding property owners.
Any replies
Does this other document mention pooling or unitizing? If so, and if you own all the oil and gas rights on your 2 acres, you would (I think) get 2/148 of the 12.5% (1/8) of the proceeds from the well. You said the other 148 acres are owned by family members? Have you asked what they have on their leases?
And, if the whole 150 acres is pooled or unitized, then it doesn't matter (as I understand it) if the well is on your 2 acres or not, since it is in the pool.
Gary B Wilson said:
I don't have the lease with me right now but it mentions the 2 acres that I own and what they are offering per acre but in a separate document, it does mention the 150 acres and the surrounding property owners.