Replies to This Discussion

Permalink Reply by FXEF on February 22, 2011 at 12:36

Frank,

 

Best case scenario would be 2 months after production is turned to sales. However, from looking at some of the post here on GHS it may take several months before you start receiving royalty payments. I think a lot depends on the operator. In your case, Petrohawk royalty owners probably could help with the time frame.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on February 22, 2011 at 12:41

Depends to some very significant extent on title work.  If the number of mineral interests are relatively small in number and have clean titles, it could be 2 months.  That would not be the average case.  And keep in mind that the professionals who run title and provide title opinions have a heavy work load as you might imagine.  The process could easily take 60 or more days.  And it could take that long for those professionals to begin the process.

• ▶ Reply

Permalink Reply by Ringgold Redskin on February 22, 2011 at 12:39

Plan on Six months.

• ▶ Reply

Permalink Reply by W P on February 23, 2011 at 7:51

 

 

What if you have a 90 or 120 days payment clause in your lease?

• ▶ Reply

Permalink Reply by FXEF on February 23, 2011 at 9:28

Hopefully the operator will abide by the terms of the lease.

• ▶ Reply

Permalink Reply by Missy on February 24, 2011 at 6:31

It only took one month from date of First Sales for me to receive DO.

• ▶ Reply

Permalink Reply by Johnnie Joe on February 25, 2011 at 11:16

I know a few people in San Augustine that had their first production in June 2010 and have yet to see a division order or payment.  The well was then turned off and then back on with another in Sept. 2010 and have since together flowed over 500MMCF.  6+ months and still nothing.  Something is wrong with that.

• ▶ Reply