A newbie question: Still trying to get a handle on inherited mineral interests. One of the properties we have an m.i. in is in Burke County, ND. It has a well called Nels Wold #1. We are currently receiving royalty payments from one company (Condor Petroleum) for what the product code says is oil, and also payments from a different company (Plains Marketing) on gas production. Same interest % with both, but it is small enough so that we don’t seem to get checks from both the same month. Is it common for one company to “subcontract” the gas production to another company (or vice versa)?
Yes, in West Virginia at least. I don’t know about North Dakota.
Yes my first marcellus well this is how it was done part CNX and part NOBLE ENERGY. One pays the 7th of the month and the other the 25th.
Theoretically, it is possible that there are two different leases, one for crude oil to Condor and one for natural gas to Plains Marketing, although I doubt it. There probably was one lease for both crude oil and natural gas, and the Lessee either made a partial assignment of lease as it pertains to the other commodity or has transferred assets somehow internally. Hard to say for sure what.
Plains is the Purchaser of the natural gas and they are distributing the burdens (royalties) in compliance with the lease and the marketing arrangements made with the Operator (Condor). This is very common.