I own WI in 4 gas wells in Gregg County, Texas.
2 questions -
----- remittance Is there a point where the monthly/quarterly remittance/invoices will exceed WI income? I feel very close to that point.
—plugging My uncle has been telling me for over 10 years that we will be on the hook for plugging these wells and need to retain funds for when that happens. Which I understand, but they are still producing. However, he says that I should be prepared to pay $5k per well for plugging.
I know there is no crystal ball for determining costs for plugging … but $5k seems like a lot per well per WI owner. There are a bunch of owners - but from my limited knowledge - for calculations the family would be planning on plugging each well for $30k. Are we responsible for all of the costs? Wouldn’t XTO be on the hook as well?
My thought process would be I have .0000014 WI in the well … I should be on the hook for that same amount when plugging comes to town - and I don’t think that’s 5k.
Would a call into XTO be worth the time?
I haven’t been impressed by the WI side of things - might have been good back in the day, but now it’s truly a hassle.