Replies to This Discussion

Permalink Reply by Nancy Mosley on July 12, 2016 at 2:07am

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...

• ▶ Reply

Permalink Reply by WV Mineral Owner on July 12, 2016 at 2:39am

Rick,

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.

Cheers

• ▶ Reply

Permalink Reply by David Allen Lilly on July 13, 2016 at 12:28pm

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.

• ▶ Reply

Permalink Reply by WV Mineral Owner on July 13, 2016 at 1:00pm

David,

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.

• ▶ Reply

Permalink Reply by Arnold L Stuart on July 14, 2016 at 7:12am

Hi Rick,I have signed many leases with Antero in Doddridge County WV.The first one being the Holden Well located in Grant Dist,the lease was signed in Aug of 2009,"before I knew any better", but i will now go to your question. I received a Declaration of Pooling, same as a Designation of Unit.on 6/14/2013, and a div order in Jan. of 2015, and payment a month later, the payment was for a years production, a couple of weeks later I received a 3% late payment. This was pretty typical of the other wells as well. Their might be some exceptions but you will always receive a D.O before payment as it will break down your interest, and gives you a opportunity to agree or contest. it's a waiting game, especially now with the gas pricing. As I was told by a analysis at Antero when I was hamming her on the Holding Well, In some states it takes years after production to finalize who get's what on a well, at that time she was one of few that handled our accounts, I told her to hire more people which they finally did but again because of pricing, I am sure Antero has cut back again. I am going to go to bat for the analysis a little for if you take a look at a permitted lease MAP, there are a lot of folks having interest, and I can understand the pressure they are under to make sure that we get what's coming to us, and that takes TIME. I hope that I haven't confused you too much. Your Friend Arnold 

• ▶ Reply

Permalink Reply by Rick S. on July 14, 2016 at 8:29am

Thanks Arnold that was basically the info I was looking for.  Nice to see Antero paid interest on the overdue royalties.

• ▶ Reply