How do the drilling companies notify mineral rights owners when production starts? I'm working with Chevron, and their communications, in general, are weak at best. Thanks in advance.
Laura, my minerals are in Oklahoma, your state may be different. It's been my experience that oil companies don't tell you anymore than they are required by law. The Oklahoma Corporation Commission has information like this posted on their website. You might want to find out what the agency is in W.Va. and give them a call or go to their website. You should also ask how long after production starts are they required to start paying royalties. Sometimes the only way some people find out is they will send out "Division Orders" and after you sign them and send them back in they will start setting up the payment process. It will probably be several months after production starts until you get your first check.
I'm a royalty owner and my experience over the years is that the never notify you of when production begins or even when they drill and complete of course that may depend on where your minerals are located. In Oklahoma we only get notice when a Division Order goes out or notice from the OCC when an oil company puts in a request. If I need info the first place to check is with the State of Oklahoma (OCC) where you can usually find (online) well information like completions, first production, etc. My experience is oil companies is that they are extremely slow in providing any info and then only after having contacted them a number of times. In my case I can usually find "intent to drill" and "completion" information published in the local newspapers (online). Others can probably provide more advice.
Unless your lease has specific language requiring it, the Company is not obligated to tell you anything, and if they had to talk to every owner under every well, you can imagine why they don't want to go there.
They are obligated to pay you your share within a certain time after production starts. I believe the rules may vary on that from State to State, but I think six months is pretty common. As others have said, your best bet is to monitor the appropriate website for your State's regulatory agency which will have monthly production volumes.
in Texas, they are supposed to pay oil one month after production, two months. some are better than others
Technically when the well is turned in line and the meter starts running.
Maybe the real question for us mineral owners is when does payment for production begin. It varies from state to state but in Oklahoma payment is due to the mineral owner no later than 6 months after the first sale (about the time when production has begun). If you don't receive first payment with 6 months (the "grace period") the company has to pay you interest. I've usually received first payment between 5-6 months from when production begins. The Continental Resources website has many answers to royalty owners questions, here www.contres.com/owners/faq
I’m with EP Energy in Texas. They just sent new Division Orders yesterday for a new well that has “date of first sales 02/21/2018”.
Much better than Oklahoma
Michael Texas does not have a law on first payment. Expecting 5 to 6 months till we receive division orders on some wells we have producing now. First sale on first one was 12-15-2017 and have 2 others started in February 2018, expect a summer gif6t!!