I am a new Mineral Rights Forum User. I am an owner of mineral rights in Nevada County, Arkansas, described as the Willisville Nacatoch Sand Unit, 17 + 20-14S-21W. I have owned this for some time, through inheritance, but am just now trying to understand it. There is a current operator who I have been in contact with and he says there are producing wells on the site. The Arkansas Oil and Gas Commission website indicates the same. Shell Trading was the previous first purchaser (don’t know what that means), but that lease has expired. The current operator (Lampkin Production Company) told me that Mid Con Gathering is now purchasing the oil. Lampkin has forward me contact info, but Mid Con will not answer my email or calls. Questions: What is the operator responsible for? Who pays the royalties? Do I have any recourse if Mid Con Gathering will not answer me?
Hi, Angie. Welcome. I assume you have contacted their owner relations contact: Kim Stephenson? Often, division order analysts (who have to process the ownership change to put you in pay) have a mountain of issues to clear and it can take 3-6 months to get put into pay after you contact them. I recommend contacting them every 2 weeks until you get some kind of response. It helps if you go ahead and provide them with all of your title, your W9, and anything you have about previous owner numbers or NRI. You may also send your correspondence by certified mail with signature. Sometimes that gets more attention.
First purchaser can mean first lessee or first operator. The well has changed hands and once the working interest is sold the first purchaser is not responsible, but the new operator is obligated to leases they have purchased. Also, the lease is not expired if there are producing wells. It is now held by production (HBP) as long as the well is producing in paying quantities (or whatever terms established in the lease). Hope that helps!