Royalties & Well Production

We are part of a well group and have been following the updates on the ODNR website. It has shown that the well has been producing for the last few months. When, if there is one, should we expect a royalty check from the producing well? Also, how can we find more about the production rates of the well/well's?

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Permalink Reply by Tony Yurina on December 19, 2012 at 4:15pm

I would review the lease agreement to determine if there is an order of payment schedule outlined in the lease language.  

If not, contact the Lessee / production company and make inquiry.  Be prepared to discuss tax parcel id number, API well number, acreage in unit, etc.  Ask what their policy is regarding royalty payment timing.

It is typical that natural gas & oil sold this month, royalty is paid 2 to 3 months later to the royalty owner(s).

These items are best spelled out in a lease agreement, upfront and clear.

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