I have a lease on some property, that is being drilled by Tap Rock, but the lease is through another company. My understanding is that there is a clause in my lease that I am to receive my royalties, within 60 days of production. Thanks to the wealth of information that I have received here, which I cannot thank y’all enough, I have been watching the well logs report production from Sept, Oct., and Nov. My question is, who pays the royatlies? Is it Tap Rock? Or the company we signed the lease with and received bonuses?
Kind of depends, but most of the time, the royalties are paid by the operator. Sometimes the operator contacts that out to a 3rd party vendor. Sometimes the owner of your lease, who may not be who you leased to, pays its share of royalty.
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