Payment Question

If I have a mineral deed that is up at the end of April and when I get paid by the Operator it is always 2 months behind, would I then expect my last payment in June for what was sold in April?

Oil is generally a month behind and gas two months behind, but can vary a bit depending upon what date your company cuts their checks.

Are you confusing a deed with a lease? The deed is the title to the mineral rights. A lease is for a certain period of time in which to drill a well. If the well is drilled and productive, then the lease moves into the secondary term and continues until there is no more production under the terms of the lease.

Unfortunately it is a term mineral deed and didn’t have the clause that it would continue if there was production so it’s ending. The check i get this month is for oil from December. I just wanted to make sure that when it ends in April that I would still get my payment two months later because that is when they would pay for April.

Ah, that would make sense. They should pay you through the end of the term, so you might get the final payments one-three months after the term ends.

That is what I thought but just wanted to make sure I was correct. Thank you for your help.

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