I received a letter from an investor informing me that I may be an “unknown heir” and that it’s a non-participating royalty interest. They offered to buy my rights for a couple of thousand dollars.
I decided to do my due diligence and contacted the operator myself. I didn’t want to give up my rights without understanding the real payout.
I’ve been producing the necessary documents for the operator and have been assigned an owner number. Yesterday, I was told that the AOH I filed had been approved, and the following steps are 1) Division Orders and 2) Title work. This is all new to me, and I’m hoping someone can give me an idea of the time frame for these next two steps. Bear in mind that these wells are currently being drilled and have been for several years. I appreciate any help you can provide.
This isn’t necessarily “help”, but it is certainly an affirmation that you are doing exactly what a wise and circumspect person would do. Good for you. You’re on the right path. With wells currently drilling, and the Operator having acknowledged your ownership and issued an Owner number… you’re well down the path to realizing value from the coming wells.
This should be a poster child post for many many others. When someone comes out of the woodwork offering you $ for something you aren’t even aware of… get educated. Often times ( yea, not every time) there are good things ahead.
Welcome to the forum. Have they sent you a proposed lease yet and do you know what your net acres are? Since you just supplied the AOH probably not. The landman will know. Great that you are getting educated before you sign anything. Check out some of the lease memorandums on the Marshall County documents site at 129.71.117.225 to see what others are negotiating. The Southwestern leases have reasonable detail. Marshall County is very active and a good place to have your mineral rights. More questions will arise that can be helped with on the forum. Good luck.
You won’t sign a lease because it is an NPRI. If they send you a Division Order and an AOH, that should be everything they need to clear the interest into your name. Assuming these are producing wells, you should receive a royalty payment soon (1-3 months).