I have a signed a lease with an operator that has 8 wells currently drilling on 640 acres. I was trying to check the well logs this morning, as August was supposed to be the 1st production run, and noticed that the lease now lists 12 wells on the 640. If the original lease bonus was for 8, should there not be new or at least an addendum to the original lease? Thanks!
No, the lease is only to have the ability but not the requirement (unless the lease says so) to drill at least one well within the stated time. Additional wells do not add to the lease bonus. The bonus is only a one time thing. Your additional royalties are the nice outcome.
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Thank you for the information, much appreciated.
Lee
Additional request of info…as stated, the lease was for 8 wells, they began drilling in April. They speculated that the first production date would be August. Now we are in October and they have permitted 4 new wells…my “guess” is that the wells are producing. My deal was that we’d receive our royalties no later than 60 days after the production run. I have looked at two sites online to see if I could find any well info, but wondering if anyone has any direction to find production info on New Mexico wells? Thanks!
Just be patient. They will pay you retro active, back to when the well(s) first started operating. The first check you get will include past months and be the bigger of the payments. Then the following months will level out and be more consistent. Depending on the resource you are providing, the checks will fluctuate monthly due to the sale price of your product, and other variables. Putting the wells on line takes time. But you will get paid as they come online.
Tap Rock just sent us a message, certified mail, referencing an Administrative Approval of Off-Lease Measurement of Oil and Gas Production. I have no idea about this industry…anybody know what this means for us? Are they requesting a 3rd party calculate the total monthly production? Thanks!
Hi Ted,
We use Go-Tech’s website to monitor Oil and Gas Production. This site is in addition to the New Mexico Oil Conservation Divisions website. Good luck!
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