# Well Reached Payout after Penalty for not participating
**URL:** https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160
**Category:** Accounting and Taxes
**Created:** [March 1, 2025, 3:03am UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160 "2025-03-01T03:03:37Z")
**Posts on this page:** 9
**Page:** 1
### Author:  [@Spunky\_dez](https://www.mineralrightsforum.com/u/Spunky_dez)
#### Post date: [March 1, 2025, 3:03am UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/1 "2025-03-01T03:03:37Z")
How do you know if an oil and gas operator is being honest about a well being in pay status after penalty is paid for not participating in your working interest portion? How can you double check this? Especially when you had no idea about the interest at the time the wells were drilled.
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### Author:  [@Steve\_Durrett](https://www.mineralrightsforum.com/u/Steve_Durrett)
#### Post date: [March 1, 2025, 10:50pm UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/2 "2025-03-01T22:50:07Z")
You can request a payout statement from the Operator and you can hire an accountant to perform an audit. If you know of other owners who are in risk penalty status, you could possibly share the cost of the audit with them.
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### Author:  [@James\_Garner1](https://www.mineralrightsforum.com/u/James_Garner1)
#### Post date: [March 3, 2025, 2:47pm UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/3 "2025-03-03T14:47:09Z")
You should post the State and the Operator for better replies to your situation. Statutory requirements vary by State.
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### Author:  [@Spunky\_dez](https://www.mineralrightsforum.com/u/Spunky_dez)
#### Post date: [March 8, 2025, 4:16pm UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/4 "2025-03-08T16:16:23Z")
Located in New Mexico
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### Author:  [@Spunky\_dez](https://www.mineralrightsforum.com/u/Spunky_dez)
#### Post date: [April 21, 2025, 10:34pm UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/5 "2025-04-21T22:34:36Z")
Do you happen to know how much these audits generally cost?
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [April 22, 2025, 2:32pm UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/6 "2025-04-22T14:32:06Z")
Cost would depend on the depth of the audit - cursory look vs reviewing the JIB summaries vs analyzing and reconciling the invoices - times the hourly fee of your expert (maybe $300-$1,000). It would be expensive and not financially worthwhile unless you have a sizeable revenue interest in the well. Moreover, you should also review the future JIB statements that you will be paying for your WI. Oil companies have experienced in-house petroleum engineers and analysts who do this on a regular basis for their non-op working interests. Small individual WI owners generally just accept the data as the costs would wipe out their revenues.
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### Author:  [@Spunky\_dez](https://www.mineralrightsforum.com/u/Spunky_dez)
#### Post date: [April 25, 2025, 3:11am UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/7 "2025-04-25T03:11:14Z")
It seems that small working interest owners are just made to accept whatever they are given with no regard for what is fair, legal or ethical. They are at the mercy of the operator.
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [April 25, 2025, 4:50am UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/8 "2025-04-25T04:50:28Z")
This is a serious business and each owner is responsible for keeping their own good records. Larger non-operating WI frequently spend their own time and money auditing the well financial records. You can ask for access to the detailed records, but if you have no expertise or experience to analyze, then you need to hire your own experts. This is not unethical or unfair. Think of it this way. If you buy a rental house and are not skilled in carpentry and plumbing to make your own repairs, then you have to hire experts to do this for you. This is why most small mineral owners lease their minerals instead of participating in the well.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [May 30, 2025, 3:04am UTC](https://www.mineralrightsforum.com/t/well-reached-payout-after-penalty-for-not-participating/80160/9 "2025-05-30T03:04:33Z")
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