Ring Energy is holding my royalty in suspense until I sign a Ratification of Oil and Gas lease, and Production Sharing Agreement. I have no problem signing the Ratification, but I'm not sure about the Production Sharing Agreement. Are mineral owners pretty much stuck with having to sign the oil company's Production Sharing Agreements and go by the oil company's formula for determining the owner's royalty interest on horizontal wells? Has anyone here drafted their own Production Sharing Agreement and formula for determining royalty on horizontal wells to add to their leases? Thanks!
The GLO has a form that is a good place to start. The good thing about a PSA is it is easier to get operators to limit to a single well or horizontals only than is a unit.
Thanks Wade! I've looked at the GLO website, but haven't been able to locate a PSA form. I'm not sure what you mean about "the good thing about a PSA..." Would you please elaborate a little bit about that?