Waiting to get paid?

Have you signed a lease and are still waiting to get paid? How long has it been? Who did you sign with? What is the wording in your lease?

Have the OG companies drilled, but you haven't been paid? Was the payment what you expected? How much did you get per acre/month?

Where is your property?

We are thinking about signing and want to be protected and have an idea of how long it will take to get paid and what kind of wording works. There are tax consequences and planning that need to be considered and it would be helpful to know a timeframe. My wife's uncle had a well drilled (shallow) and is now HBP- his last royalty check was for $.75, yea, that's right 75 cents!

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Permalink Reply by KayTee on October 13, 2011 at 4:20am
One of the 6 promised wells has been drilled on our property.  They even built a huge fracking pond.  Now  they pulled out the rig and everything is at a standstill, since late spring when we were contacted by a company that needs our land to run a pipeline to move the gas through.  I guess I should have figured that they need a method to transport the gas.  But when they heck are we going to start getting monthly checks.  We have had sooooo many different contacts throughout this whole 4 years since we signed.  I don't even know if any of them knows what's going on.  Very discouraging, after the drillers told us that our well blew some huge part and that there is a lot of gas on our property.  Waiting to retire, but when???
Permalink Reply by Finnbear on October 13, 2011 at 4:47am
The checks will come once the well is in production. If they need your land for a pipeline ROW, negotiate a good deal that favors you and collect on that contract also. Use a GOOD oil and gas attorney to ensure that your interests are protected.
Permalink Reply by KayTee on October 13, 2011 at 5:36am

Apparently this is where we are and there have been some obstacles with bordering landowners.  Wish we would have known the entire process before we started.  Wish more that we had someone to inform us on a regular basis as to what is going on.  At least a phone call once a month maybe?  We have an attorney, he says he's experienced in this O&G stuff.  I hope so.  He helped us with the paperwork for this pipeline.  That was all signed months ago.  Still no money and no news.

 

Permalink Reply by Finnbear on October 13, 2011 at 5:40am

When they pulled out the rig, was the well finished? If so, the next step is to get the well production to market which requires infrastructure (pipeline). If the pipeline is not in place, there is no way to produce the well. No production = no money. Royalties are paid on what is actually produced from the well.

Permalink Reply by KayTee on October 13, 2011 at 5:51am
Yes, the well was finished.  This is where we are right now.  Signed a contract with the pipeline people.  There have been a few obstacles with bordering properties causing a delay in running the pipeline.  Oh my.....what a long wait this is!!!
Permalink Reply by Finnbear on October 13, 2011 at 6:44am
Patience is the key. When they spend 6 or 8 million $ to put in a deep horizontal well, you can rest assured they will produce it if there is oil and gas down there. It may take a while to get the infrastructure in place, but it will get done.
Permalink Reply by Brandon Nuttall on October 13, 2011 at 4:51am
Make sure the well is connected to a gathering system and that there is a meter. You can request to inspect both. Without both, there is no gas being sold and therefore no royalties.
Permalink Reply by KayTee on October 13, 2011 at 5:37am

I will keep this all in mind if we ever get word of some action on our property.  Good advice!   Thank you.

 

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on October 13, 2011 at 10:07am
I leased with Shell (Swepi LP ) on Sept. 14. Does anyone know how long they usually take?
Permalink Reply by Dave on October 13, 2011 at 12:29pm
90 working days so at best think
2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on October 13, 2011 at 1:28pm

Thanks Dave.

Permalink Reply by Dave on October 13, 2011 at 1:37pm
include weekends holidays and snail mail and good luck and congratulations

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