I’m trying to locate a plat or possibly old exhibit that shows the locations of the lots and sub lots in Section 271 but am having no real luck. Does anyone know if this exists, or should I try tracking down the m/b legal description of the subdivisions themselves?
Don’t know if this will show up, but it is an old map of Section 271 which is hard to read. The sub-blocks start at the top left and wrap around in a zigzag fashion from 1 to 16. The 5 acre lots are numbered 1 - 8 in each sub-block. Some parts are blacked out making it harder to follow.
I am getting the highest royalties ever on the Young Wells. Last Summer 2021 right before my Lease expired, I was contacted by a representative. He sent me paperwork to sign so I would get royalties. The Young wells are producing and paying great royalties
Hi Jed…yes we are leased at 25%. We are not in a pool as we own an interest in both section 270 and 271 where the wells were drilled. As for being paid off, I don’t know Texas law but would estimate or guess that the wells should be close to being paid off. They make 2.5 - 3 million a month. That’s before royalty owners get their share though, so really don’t know the answer to that question. Do you own in both sections or just 271?
R, we are in 270 and also in a producing section adjacent.
Does anyone know the process, procedure, disclosure a driller producer makes once a well is paid out? Does Texas state law make rules, regulations on disclosure of a well being paid out? Looking through threads here I don’t see much discussion on that.
Does anyone know the process for Unleased Owners? I should get 100% royalty.
I received a bill for productions costs around $10,000. They want payment now before I
receive my royalties. Will they be able to tell me what my royalty payout will be? First time to be unleashed. I think production has stopped on the wells. Any help would be great
If you are an unleased mineral owner in Texas, you do not receive any revenues until after the well has “paid out”, i.e. the net sales have covered all drilling related expenses and day-to-day operating expenses. Then you receive 100% of your share of revenues, less your share of operating and well expenses. So if you own 1% of minerals, then you get 1% of sales less 1% of the costs. Payout is calculated on a well-by-well basis, and so if a well never reaches pay-out, then you receive no revenues, but you could be paid on other wells after-payout. I would not think that you should be paying a JIB for the costs, but only be netted (Total sales from well less total expenses). As an unleased mineral owner, you are not liable for the plugging costs either. Do not sign a Joint Operating Agreement or other document making you liable for costs exceeding revenues. You should consult your oil and gas lawyer for specific advice based on the particular details of your wells and situation.