ORRI in Vertical Gas Well Converted to Injection Well

General Mineral Rights Discussion
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I have an ORRI in the Roy Gage #1 (Lease #226013) in Upshur County, Texas. It wasn’t a great well and only produced about 800mcf per month when it was shut down in February 2018. At that time, the operator was Princess Three Operating, LLC. The operator of record changed in April 2018 to Sabine Oil & Gas Corporation.

Sabine converted the Roy Gage #1 to an injection well and thus, I haven’t received any royalties since then. I believe it is still being utilized as an injection well. They also drilled a new horizontal well, the Gage Gas Unit #1H (Lease #286450) right next to the Roy Gage #1 that came online in February 2019. I am not receiving royalties on this well.

I understand that ORRI’s typically are tied to a specific well. Is that always the case? I am sure all of the mineral owners that had an interest in the Roy Gage #1, now have an interest in the Gage Gas Unit #1H and are receiving royalties. Am I the only one being left out? It doesn’t seem quite right, but I am happy to have some of you tell me that is just the way it goes.

Thanks for your input.

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It depends on the language in the original ORRI assignment. Could be limited to particular wellbores or could be related to all wells drilled under specific leases or could be limited to specific depths or formations, etc. Royalties are not paid for injection wells as they are not producing oil and gas.

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