I have several wells with Antero, all new and only one marked as "producing". I received a "Declaration of Unitization" from them on all the wells but to date have not received a Division Order. Does anyone know if Antero issues one or do they use their "Declaration of Unitization" for such?
I don't have direct experience with Antero, but my understanding is that they do issue division orders when they have done the thorough title searching process after the units have been formed. This might take some time, depending on the situation. Then the division orders go out, and get returned. Sometimes this can result in changes, if some mineral owners discover incorrect percentages in the division order.
I think that the division orders do not go out until after the well is producing, so your wait should not be too long on that one. But it still could be a few months.
The good thing for you is that the prices have been going up, so your initial payment will be bigger than if this were a year ago...
Nancy is correct in her assessment of dealings with AR.
Unfortunately, it is currently taking 13 - 17 months from initial production to first payment. My experience has been payment quickly follows an actual Division Order.
Additionally, you may not receive an actual Division Order if you are only a royalty owner and do not have the Leasing RIghts.
My lease states that the producer has 180 days after the first day of the month following the mnth production began, on the first well.
Each additional well is 120 days.
After that they ve to pay no later than the last day of the second month following production.
We leased with Antero, who traded us to Eclipse who traded 12.5 Chesapeake for the unit we are in now.
Chesapeake basically told me they would pay according to the timeline in my lease.
Of course if they refuse to follow lease terms I don't know what can be done about it.
You appear to have some acreage of a good amount, you absolutely should be using legal representation to verify these things for you.
Just my 2 cents worth and valued exactly as such, but... Holding a lease that specific in timelines, you are in an excellent position to demand interest on any late payments, otherwise the lease has been breached.
Thanks Arnold that was basically the info I was looking for. Nice to see Antero paid interest on the overdue royalties.