Have a small working interest in a well and I just received my first JIB. I had paid my share upfront, so much of the costs were covered by my cash call. My interest was so small, that they decided doing a JOA with me was not worth the time, effort, and cost, so we proceeded without a JOA. Some of the items on the JIB they sent were mentioned on the AFE I signed, and some were not. Without a JOA in force, am I legally required to pay for expenses not mentioned in the AFE? They are all under leasehold cost designations for legal and land professional services.
Secondly, the AFE showed and estimate of roughly 25k for land damages, and the statement says a total of 5k was incurred, and they are billing me 4 dollars for that expense. Is the assumption that they went over the estimated cost for land damages? Thanks!