Hi! I’ve recently become the managing member of our LLC due to the owner’s mental incapacity. I am a clinical psychologist and new to mineral rights ownership. I’m pouring through a ridiculous amount of mail and have noticed repetitive mail coming in from an attorney regarding a motion to extend a multi unit horizontal well for a period of one year to allow them to commence additional drilling operations. My question here is, what is my responsibility in terms of responding? Thanks in advance.
Welcome to the forum. I am assuming this is OK. You do not have to answer that case. Just information that they are required to give you. It is helpful if you put the cases in numeric order and then by date order. The only case you REALLY have to watch out for is a pooling case. Once the order is given, you only have 20 calendar days in which to answer or you will be assigned the lowest royalty option.
Read the Mineral Help above for a good primer. Also check out NARO, the National Association of Royalty Owners. www.naro-us.org
If you have specific questions, then post in the state and county and you will find the forum generally quite helpful. You can also use the search magnifying glass to look up topics.
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Hello, 1st off if they already have a lease most often the lease will state that they can keep going pending MANY THINGS and the leases are usually 3 years long. If they DONT have a lease, and they just want to extend the time, then see what moneys they paid for the lease in the 1st place to get some more
If you do have a lease in the section(s) mentioned in the order, make a note as to your end of primary term and keep an eye open if the end date is before the extension of the order. You may have to lease again or get pooled.
I keep a running activity log for every tract and make note of important dates such as leasing, OCC case numbers, poolings etc.