It has been an almost two year process to get my fathers mineral rights in my name. After doing 3 probates and sending all of my information to the McKenzie county recorder to record the title in my name, my lawyer should be receiving the title back from the Recorder in the next couple of weeks. They will then send the title to the oil companies involved informing them of my ownership. There are 7 producing wells in one of the spacing units and there is money being held in suspense. What can I expect once the oil company receives this information.
Payment will still not be instant. I would expect a 2 month wait, possibly more for them to get around to verifying your title and then they generally send out checks all at once so you will have to wait until the day or days they regularly send out checks.
Thank you again for your response Mr. Kennedy. I can't believe how long everything has taken to get to this point. And now a couple of more months. When they have verified my ownership and send out payments I assume that would be my share of money held in suspense but would it also include the 16 % required royalty payment and would those royalty payments begin at that point forward?
You have responded to several of my posts over the past 2 years which has been very helpful in my understanding of this whole mineral rights game. I appreciate your help. Have a Great day. You may be hearing from me again before this is all over, if it is ever over.
r w kennedy said:
Payment will still not be instant. I would expect a 2 month wait, possibly more for them to get around to verifying your title and then they generally send out checks all at once so you will have to wait until the day or days they regularly send out checks.
If you have not leased and are non-consent, the monies held in suspense will be the accumulated statutory royalty. I doubt they have even calculated your royalty as they can never be certain that you will not lease to them after all.
When you start receiving checks, that pretty much finalizes things but even then, with each new well my operator sends a new lease offer which I consider for at least 3 seconds because I like to keep an open mind.
It is not difficult to plug in the royalty interest into the equation and it's not like the money comes from separate accounts because all the money belongs to the operator until they need to pay the mineral owners, somewhat like the general fund with the federal govt. Congratulations for being so near to the end of a long and tortuous road to get paid.
PUpsahl said:
Thank you again for your response Mr. Kennedy. I can't believe how long everything has taken to get to this point. And now a couple of more months. When they have verified my ownership and send out payments I assume that would be my share of money held in suspense but would it also include the 16 % required royalty payment and would those royalty payments begin at that point forward?
You have responded to several of my posts over the past 2 years which has been very helpful in my understanding of this whole mineral rights game. I appreciate your help. Have a Great day. You may be hearing from me again before this is all over, if it is ever over.
Sorry to reply to an old discussion, but in this situation, if you get the minerals in your name while wells have been producing, and they send you back-royalties accrued at the statutory amount because you are "non-consent"...
1. Do you get an AFE for those wells that were already producing when you got ownership? Or has that ship sailed and you are just automatically non-consent?
2. If you are non-consent automatically on those wells, once they have recovered 150% of the drilling cost, does your royalty automatically change? Aren't you at the statutory amount, say 16%, specifically because they are using the rest of the money to recover their 150%?
Thanks!