I leased my property in Weld County four years ago. Last week I received a call and found that the lease has changed hands twice, and oil has been found. From the call, I deduce that the well is in production. I was told that, once I sign the Division Papers I will receive a check that will cover the last eight months. Does that mean that it has been a producing well since January 2012? If so, why wasn't I told sooner? Is there some time limit for the Division Papers to arrive? How do I find out what the production is on the well? Tried COGC site and got nowhere. Any information would be appreciated.
Well, I was told years ago that oil companies have to start paying royalties by six months or start adding interest to royalty payments.
You should have gotten your DO papers within 3-4 months. Look on the DO for the first production date on it.
Congratulations on your well!
Similar experience in Weld County and we can’t seem to get information on when the oil production began and how many wells have produced. I don’t understand the lack of transparency. No paperwork has yet been received except for the initial lease options paid over the last two years. We live out of state and it is difficult to get information at this point. Glad to have found the Mineral Rights Forum
Is there a way to tell if they are drilling yet on our plot? We signed lease paperwork in January and have heard nothing since besides when we received our lease check.
Even though you failed to mention where your minerals are, thru some searching found it on COGCC. Production began in January and it looks like it was down for the month of April but looks like a nice well and you should count your blessings that it did change hands and Noble is now the operator. Yes, it always takes a long time for the wheels to turn but if you don't like the way companies work you didn't have to lease your minerals. They can not call every mineral owner on the phone to tell them all the details minute by minute, one must learn patience. Noble is a good company but very busy as all are very busy and need to hire more people but there is a long process they go thru to get you a division order, but yes, some do take a long time and need to hire more people, just not enough title attorneys or people in division orders.
Did you sign an 8 month lease or why do you expect they would be contacting you after so short amount of time after you leased? If you leased for 3 years, it may be 3 years before they drill and you may never hear from them again. If another company drills a well next to your tract and it is a dry hole like the first 1280 spaced well in Weld County drilled last year by continental Resources (it was bone dry), the company you leased to knows and they may choose not to drill at all rather than waste money and drill another dry hole. If someone drills a marginal well that is uneconomical, the company that leased yours may not drill. Most are going for the Niobrara only. Go to COGCC and take a look at their GIS, if there is a new well producing hardly anything or dry then it will not look good for yours. On the other hand if there is a new well like Kathleen's close to yours then it is only a matter of time and they will be drilling, or wanting to extend the lease for a few more years. They have tons to drill and many will never get drilled