Replies to This Discussion

Permalink Reply by Pam S on January 25, 2010 at 11:48am

Thanks for the reply. That's what I was actually asking about. Does anyone know the average current production rate and current price? I'm not sure where to find the average rate but I think I have an idea of the price - 3.40 sound correct?

Permalink Reply by Susan Yungwirth on January 25, 2010 at 1:43pm

Pam,
I believe that royalties are dispersed from a production unit of a well,not the acre unit, which means after the well is drilled and fraced, a geologist determines what area is effected by the frac of that particular leg of the well... so if you are part of the 640 acre unit, you may not get royalties until they drill under your property....I am in a similar situation that has the same 640 acre unit, the pad has 3 wells drilled at this point, but none of them are coming in my direction yet....I have been assured that if we are part of the production unit we will be notified, although be aware I was told that all the expenses of the well are paid first, then the royalties are paid to the land owners of the production unit.

Permalink Reply by Pam S on January 26, 2010 at 12:16pm

thanks so much for your reply. I couldn't open your link. Do you have a website that I could find the info on? Thanks again!

Permalink Reply by Susan Yungwirth on January 26, 2010 at 2:47pm

I was told that the production units are registered at the county court house.... I have not been to the court house to verify this but I know that there is a producing well on the 640 acre block that I am part of but the production unit does not include my property... yet...I know that if a well is on the corner of an individuals property, but the well frac leg goes into the neighboring property, the royalties will be dispersed to the neighbor and possibly only include a portion of the property that the well is actually drilled on.... my son is in that situation