I received a lease offer, (in Yoakum County, TX), I think is too low. If I decline the offer and enough other people sign what happens if they go ahead and drill a producing well?. Will I be left out?. If not, what % royalty will I get?.
Thank you.
There’s a lot things that can happen and depend on 1) type of well: vertical vs. horizontal 2) whether the well is on or crosses your property 3) is your property within a certain footage of the proposed well
If a well is drilled on or crosses your property then you would be a co-tenant to the well, and therefore receive your proportionate interest into all/allocated production after the payout of the well.
In cases where it doesn’t cross your property you wouldn’t receive revenues.
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