My mom was sent a lease to sign. They want to give her 139.00 signing bonus. The property is small less then an acre. She also has 2 other properties with wells, one from 1994 and one from 2000. They were both forced pulled. One is from Oxy the other one is Mewbourne. She has been getting invoices from both of them for Joint interest Billing. What is that? It’s so hard to talk to anyone from those companies.
If you give the section, township and range, it is much easier to give a good answer.
Lot 9, block 212 of Osborne Fourth subdivision located In the West half (W/2) of Section 7, township 2 south , range 27 east N.M.P.M. Street address 709 Ortega street, Carlsbad, NM, 88220
I still have not received an answer. thank you
If a mineral owner doesn’t sign a lease (either because he cannot be located or refuses to sign), the operator can “force pool” the mineral interest. Essentially, the operator will pay the mineral owner a 1/8th royalty from the well and the operator can use the other 7/8ths of mineral interest’s revenue from the well to recoup the costs to drill the well plus a risk penalty. Once fully paid, the operator should begin paying the mineral owner 8/8ths from the well. Operators are required to send JIBs or joint interest billing statements to account for the 7/8ths share that has been applied towards the cost of drilling the well and risk penalty.
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If I signed a lease will I start getting royalties once the well starts producing? These wells are in Eddy, county New Mexico. 3 have been forced pooled, so I don’t get much from them. I am hoping I get something from this one since I signed a lease. These wells are in a family trust.
Correct. You will begin accruing revenue once production begins. However, NM law gives the operator a few months leeway before they start paying and they could hold your proceeds in suspense if there is a title issue so you might not receive a check right away.
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