My lease originated with Anadarko, Cititas took it over, do they have to abide by my original Anadarko lease?
I negotiated 18%, 1/5th written in lease, Civitas has been paying .0028, I also had a 3yr with 3yr option paying a bonus for the option which came and went without payment. They shut in the well 4 months ago, I was to receive a payment for that with repeat payments every 90 days, I think for a year. I’d greatly appreciate comment on what my rights- options are? My questions were pretty well blown off by Civitas. Thanks so much
The decimal is from an equation that includes your royalty, net mineral acres and spacing. 1/5th is 20% so that is better than 18%.
The three year option may have never vested if they drilled within the original three years.
You will not get paid royalties if there is no revenue from sales. They should abide by the original lease. Most folks get paid for the complete life of a well, not just a year unless the well dies within a year. Read you lease again to see if there is a specific clause about that. You may also have a minimum payment and timing regulated by the state. But if the well has no revenue, then there is nothing to pay you for.