Has anyone got any information of what has been offered in royalties in the proposed Serfin Ortiz Unit project of Marshall County by the Oil Company doing the project? Thank you.
@Don6 I would suggest asking the drilling operator who secured that unit about royalty information. The operator pays royalties. If you are receiving offers for leasing or selling, I recommend consulting an oil and gas attorney or a Petroleum Mineral Advisor for guidance.
Thank you, we are planning to attend a State Forum in a few weeks on the proposed Serafin Ortiz well Unitization Project in WV to get more information. We’re leaning toward agreeing to Pooling with the option of royalties at the well head by an Index Price set. I think according to WV law on pooling an owner that has non-leased minerals will receive the highest royalty percent offer in the last 24 months. We’ve had one offer from the company to lease for a royalty at 18%( but not at the well head).So we’re wondering what other royalties have been offered. Don
“Watch out” for at the well head language. Be sure you understand the consequences regarding post production charges.
You can review the operator’s application on the WV Oil & Gas Commission website. Search Results In the application, there is a spreadsheet of the economic terms of mineral tracts in the Unit. It is really small, but you can magnify the numbers and review what royalty rates are in the Unit, and more importantly, what royalty rates have been agreed upon within the last 24 months. An unsigned mineral owner will receive the highest royalty rate from a lease signed within the last 24 months if force pooled. You could also review the final Dockets for the Serafin Ortiz North units from the same website. These are final, and they will contain information on what unleased mineral owners were paid per NMA and the royalty rate they will receive. The South Units may end up with similar numbers. The answer to your questions can be found on the Commission website.
Thank you for the heads up, from what I was reading it is probably a better choice to go with the index price at the well head if possible with our choice for pooling with royalties.
Thank you Jeff for your insight