Royalty Payment Timing

Oil and Gas Leasing Help
1

Approximately, how long does it take began recieving royalty checks after a well has gone on production?

2

Most will hold 6 months before paying. My Mom's first well had been producing for ten months and not received a division order. A landman told me to call the company and ask why. Even though they had leased minerals they will research ownership again before payments start. They said they could not find proof that Mom was the sole owner of my Dad's estate. I sent them documents that were filed by her attorney after Dad's death and within 60 days she was receiving monthly royalty payments. We had real estate documents going back forty years that showed chain of ownership. # 1 recommendation, have your documents in order.

Jessica

3

Jessica:

Thanks for your information regarding the time period before payments are recieved.

Jessica McNeil said:

Most will hold 6 months before paying. My Mom's first well had been producing for ten months and not received a division order. A landman told me to call the company and ask why. Even though they had leased minerals they will research ownership again before payments start. They said they could not find proof that Mom was the sole owner of my Dad's estate. I sent them documents that were filed by her attorney after Dad's death and within 60 days she was receiving monthly royalty payments. We had real estate documents going back forty years that showed chain of ownership. # 1 recommendation, have your documents in order.

Jessica

4

Jessica,

I have a gas well that started producing in mid-January 2011, operated by Chesapeake. No payment yet. Are you familiar with their practices or know if they are generally following a 6 month time frame as well?


Thanks

Jessica McNeil said:

Most will hold 6 months before paying. My Mom's first well had been producing for ten months and not received a division order. A landman told me to call the company and ask why. Even though they had leased minerals they will research ownership again before payments start. They said they could not find proof that Mom was the sole owner of my Dad's estate. I sent them documents that were filed by her attorney after Dad's death and within 60 days she was receiving monthly royalty payments. We had real estate documents going back forty years that showed chain of ownership. # 1 recommendation, have your documents in order.

Jessica

5

Austin:

From what I've read, it could be up to 6 months before you will recieve a payment. During this time, I will guess that the company will be completing legal work including verification that the royalties are correctly paid to the legal owners. If this is your first time to recieve royalty payments, I would consider setting up an account for direct deposit and use this account to pay taxes, etc. that comes with the royalties.