I own 320 nma in Sec. 14 & 23, T15-S, R23-E in Lea County, NM.. This is just NE of Lovington.
After having leased it out to various people over the years, I leased it to a group that puts together lease packages to offer to operator/investors. I just got an email that the package containing my leases have been sold to a small company that is backed by investors, and that they probably will drill one or more wells.
I would like to know what happens if they drill and hit a producing well. I am looking for someone that can teach me the business and what to watch out for. Can anyone recommend a good attorney/consultant that I can hire for some solid advice?
Get to know the operator. There are many good ones and some real shady ones. If a well makes, it will take up to a year for the operator to recoup drilling costs. your royalty will kick in at that point. Many of the variables regarding your % and what cost you incur will be spelled out in the lease. Enjoy the mailbox money.
If they start drill you will start to get division orders, etc to sign so you will know your ownership interest in the well. After it starts producing, you will start to receive royalty checks for as long as the well produces in paying quantities. Which company purchased your lease? As for an attorney, Freeman Mills out of Dallas may be good. I know they render Title Opinions, but not sure if they consult.
Jim - Do you like the attorney you are using in Roswell? I need to have a correction deed filed in Lea County, and our usual Texas attorney would probably not be able to do that. If he can review/amend lease offerings, that would be all the better. Here's my email and phone if you'd like to talk first: lelandmont@gmail.com (973) 303-0376
Yes we love the guy. His name is Kelly Mack Cassell. VERY knowledgeable and he just amended a joint tenant mineral deed in Lea County to include both my sister and my spouses on the mineral deed.
It was his suggestion to include both spouses (we had not thought of it), so it was a little bit of his time and it has been filed with Lea County and we just got our copy of it.
One more step on this path. He also reviewed the lease we eventually signed, but not before he reviewed and modified it to OUR benefit also, not just the people who are offering the lease's benefit. Several sections were removed after I explained that we would never sign anything our attorney did not review first. Hearing that, the 'lease negotiations' we much easier because the other party KNEW they would not slide any thing past our OGL attorney and they gave us a fair lease.
If you need contact info, let me know. I can send it all to you.