Generally, how long does it take after signing the division order to start receiving funds from a producing well?
Usually it’s after the start of 1st three months of production from a new gas well. For the older ones or my recent inherited ones, it’s just a paperwork trail that hopefully doesn’t get lost. I e learned that gas companies will take their sweet time for process g anything.
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It depends upon the operator and the state rules for how soon they have to pay before they are liable for interest for paying late. Some states are 120 days from first sales and some are 180 days.
@Linda_Leebron it may also depend on whether you signed division orders for new production, or it is a newly acquired interest that is already producing. If it is already producing and has been for some time, it could be as short as the next month when they run royalty payments. However, if it is new production, as others mentioned, it could be a while. It will also depend on the volume of production and your ownership share in the unit. If you have a very small interest, the operator could allow the royalties to accumulate to a stated minimum dollar amount before issuing a check so that they aren’t spending $0.75 to mail you a check for $0.13.
Good point on the timing. If you are signing a new division order, you can change the minimum from $100 to $25 to get more timely payments. Also, you do not have to sign a DO in OK (and many other states) in order to get paid. You can send a letter in lieu for OK. They really want your W-9. In TX, you must sign in order to get paid!
It is a new well - or basically a rework of a well that has not produced in years. The spacing on the Chester is 640. We own a fourth of that.