I am a mineral owner in Atascosa County. I have been receiving royalties for about 18 months. suddenly the checks stopped. I called my account manager and he said the well was producing, but the oil was not being sold. What does that mean for me? Are they under any obligation to sell it at some point? Will they sell it eventually? I am assuming it is a good sign that the well is producing, I just can't figure out why they wouldn't sell the oil.
Typically, oil will not be sold until it has accumulated at least a truckload, because it isn't cost effective to haul less than a full load. This can be +/- 100 bbls. So if your well is producing only a couple of barrels per day, it won't sell every month.
Since you're getting check(s), plural, sounds like you need further investigatory efforts. I see red flags. What's the name of the well?
George Wilson, CMM