Royalties. When should they start.

  So I signed a new lease in June of last year 2013. My old lease expired so this was not a renewal. It was a completely new lease .July of 2013 the well near me went on line. Somewhere along the line my paperwork within the company was screwed up and I was not placed in a pool till Dec of 2013 which is where my royalties started to pay out. First check march of this year. So my question is should I be entitled to my royalties back to the beginning of production. Thanks

Views: 715

▶ Reply to This

Replies to This Discussion

Permalink Reply by JK on August 7, 2014 at 8:48am

I think gas producers pay for the last 3 months so it's never current.

At least that's what CHK does with us.

Permalink Reply by Dexter Green on August 7, 2014 at 8:59am

Depends.  Were you in the unit at its inception or did they modify it later to add you?  Is the lateral under your property?  Are you within or outside of the minimum spacing requirements?

Permalink Reply by ulflyer5 on August 7, 2014 at 9:24am

  The unit was already formed when I signed. My property was surrounded completely with the unit. I believe there was one update to the pool after I signed, but like I said the paperwork on their end had an error. It wasn't till after I called and really pushed to have them look into it that the error was found. Mistakes happen and I understand but curious if an error on their end should cost me 60k. I am probably SOL but was curious. I tried calling the company but played phone tag a few times and not sure if I even have a leg to stand on.

Permalink Reply by Carl Krebsbach on August 7, 2014 at 3:29pm

Sounds like you need to do some homework and look at the timeline of events to see if anything changed after you were included in the unit (i.e. were the laterals finalized before you were included, etc?).  It always pays to be at least as knowledgeable as the person you are talking to whenever possible so they can't pull a fast one on you.  Don't count on them being honest.  One time a few years ago I had a Columbia Gas Transmission guy lie through his teeth to me concerning the terms of an existing lease I have with them for a transmission pipeline that runs across my property.  Had I just gone along with what he said, I would have lost out big-time.

Permalink Reply by Dexter Green on August 7, 2014 at 3:50pm

Carl is correct.  You need to have a timeline established.  Once you were included in the unit your were entitled to start receiving royalties.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service