Hello, I recently inherited our mineral rights company and have so many questions. Everyone has been very helpful. I am receiving a bill from LE Jones Operating, Inc. for Marshall # 1 & 2. Although it’s minimal (ex. $21), I am wondering why I am receiving a bill. Thanks in advance.
Contact them and ask. It is highly likely that your ancestor had a working interest ownership and these charges are for an old JOA. Joint Operating Agreement.
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When there is a JOA in place and the well stops producing do you know what happens then? Are the costs post production passed onto those with a working interest ownership?
Thank you.
You need to read the JOA for all of the details. In general, the costs of plugging and abandoning do fall on the working interest owners. Some operators may drill deeper or shallower into other horizons. Some operators may plug and abandon in a tidy and timely fashion. Others do not and can drag on way too long.
All I have is a Division Order……
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You can contact the Division Order analyst or the revenue department of the operator and ask them if you are a working interest owner. If so, ask for a copy of the JOA to find out if you have future liability. If you are a simple royalty owner, then you do not after all wells that go with the lease are finished.