We currently own mineral rights in the elm grove field right down the road from the big "hit" just happened ...We signed an intent to lease about the same time this happened... How do we know if we will receive royalties off of this or not ? I mean, how do you know for sure when you are entitled to receive royalties ? I heard someone say they had to do research and found they were due payments for some 5 years back... But, if they hadn't searched it out they were not going to receive them... Thanks for any help or advise...

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any help at all ? I certainly appreciate it ...
If you own land and mineral rights in a section where a well is producing, then you are entitled to receive your royalty share. It gets more complicated with you because you mentioned you signed an Intent to Lease and you may or may not be obligated to work out the lease details with that company. On one Intent to Lease that I have seen, obligates the company and the landowner in a lease agreement, with the specifics of the lease to be worked out at a later time.

I wish I knew more to tell you.
I am not sure if that is all correct I live in sec 17 there are wells producing in my section but I have never received anything I do however own 100% minreal rights and have leased them in the past
a new well was just dilled in my sec 2 mths ago and is producing why dont I get any royalties? I own 100% mineral rights
I may be wrong, but I am under the impression that the well has to pay itself off before anyone gets royaltiesand that the well owner will tie up the royalties of folks that own 100% for years and years just because they can. Again I m not sure if this is true. Seek leal advice fast.
Susan, just to clarify. If someone has leased their mineral rights then they receive "royalty" payments as soon as the well begins producing.

If you do not lease and are "force pooled" then you are a "carrried" working interest owner in the well. The operator will begin paying you revenue less operating expenses after the well cost is paid off. These payments are not "royalty" because you are an actual joint owner in the well.
in response to insomniacnla ... I only signed a intent to lease pending on a clear title search and coming to an agreement on the lease for both parties...that was the grounds...So I feel I should have a little more bargaining power there hopefully...We already agreed on the lease monies, percentages, and length of lease, but not on the lease terms ... We are however in a binding contract providing we can agree on terms of the lease...thanks again for your help...

If you are due any royalties and the production company was unable to get them to you, those monies are on deposit with the State of Louisiana.

A few years back, I moved and forgot to forward my new address with a production company. I figured the well ran dry and never gave it a second thought. Then I searched the Louisiana Unclaimed Property Website one day and there it was.

Here is the link. Hope it helps.

Thank you so much for the info... These things do happen even though we don't like to think so..
What if they are paying a previous owner. Is it their responsibity to to title updates?
Parker, I believe the lease agreement should be disclosed by the previous owner during the purchase and/or closing. Also the title search should identify any lease agreements. It should then be the purchaser's (or maybe the title company) responsibility to notify the lessee regarding the change in ownership.

Clearly the previous owner should notify someone if they are still receiving payments.
You do not always get royalty payments from a well drilled in your section. Oil wells or gas wells producing from shallow formations can be in units smaller than 640 acres (ie 160 acre, 80 acre, etc). Very shallow oil wells such as Tokio producers sometimes are not even in units and only pay royalties to the land owner where the well is located.

Haynesville Shale wells will be producing from 640 acre units (section) so all mineral owners with a lease in the section should be receiving royalty payments.


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