Now what? Where's My Royalties - It's been 10 Months!

I am an unleased mineral owner on a section that has a producing gas well on it. Section 34 range 11, Samson Contour. It has been producing since last october,2009. I have recieved nothing from the company regaurding operations or anything else. Should I recieve anything at all from them? I have been told I should have recieved an owner number. To date I have recieved nothing. When should an UMO expect to start seeing royalties after a well has been put on the market?

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Permalink Reply by The_Baron on July 7, 2010 at 4:11
Antsu,

Just to be clear, we are not taking " something that is already ours by law in LA"

You will be compensated for whatever is produced. And furthermore, Oil and Gas in the ground are not owned by anyone. In LA you own mineral rights, that is the right to explore and produce and reduce the mineral to possesion, not the minerals themselves.
Permalink Reply by Kat Bloomfield on July 8, 2010 at 2:11
in Louisiana, unlike some other states, oil and gas are not "owned" until captured. Once captured by the operator, the UMO OWNS ITS SHARE OF PRODUCTION, which is its prorata share less its pro rata share of expenses. The operator NEVER OWNS THE UMO's share of production, ever.
Permalink Reply by The_Baron on July 8, 2010 at 2:37
I am not arguing that. My point was that a unit operator has the right to produce minerals from within their unit, whether or not a UMO agrees. However, the UMO will be paid for their share, less costs.
Permalink Reply by Kat Bloomfield on July 9, 2010 at 2:30
right. Now, please identify precisely which parasite pays its share of costs, whether cash up front or on the back-end out of production (remember, this is the shale--a manufacturing play and not a hunt and hope play)?
Permalink Reply by The_Baron on July 9, 2010 at 2:56
I happen to know of a number of shale wells that will not pay out. I know of many that will be lucky to pay out in a reasonable length of time.
Permalink Reply by Kat Bloomfield on July 9, 2010 at 8:55
And, the expenses will be deducted from the UMO and the WIO will pay the other portion. And, the operator will get a big fat tax write off.

Yet, you still did not answer my question and identify precisely which parasite pays its share of costs, whether up front or on the back-end out of production. Why?
Permalink Reply by Harvey White on July 8, 2010 at 2:56
MISTER baron. As I said befor. I did'nt ask you to come into my section and drill in the first place. I have been lied to by the greedy oil and gas enterest. You, ie oil and gas, even told Me there was not a producing well in my section when you knew darn well thier was. You tried to get me to signe an unsatisfactory lease using scare tatics and your,ie oil and gas, lies. So I guess if by My not playing your,ie oil and gas, game makes Me a freeloading parisite then so be it, but how does that define you, ie big oil and gas. Lie to em, withhold info, and cheat em everywhere you can????
Permalink Reply by Dion Warr, CPL on July 8, 2010 at 4:47
Harvey:

To interject: remember, water off a duck's back?

Remember, you exercised your choice not to lease, which is a choice that has been legally afforded to you. Despite the company's failure to obtain additional leasehold from you, they drilled the well anyway, in essence electing to carry your interest in the process. Being that the operator derives their income from the same revenue stream that you would derive yours, ie., the production stream, it is not within their economic interest to attempt to further punish you by operating the well in an imprudent manner. Maybe because of entirely different reasons (as you have stated above), you have chosen to take your chances to be unleased rather than be leased at terms that you could not or would not accept, and will now live with the implications of being an UMI owner.

My advice would be to not be mad; educate yourself as to your situation and to your rights, and/or seek counsel as appropriate and necessary. You are in a unit in which a well has been drilled and completed (whether you wanted a well to be drilled or not). This is fact. Make sure the operator knows who you are, the interest that you own in the unit in which you own, and that you are not going away.

Remember that the personnel staffed in owner relations departments are people, too, and as such, people who interact with them negatively will generally impact their responses to your inquiries negatively. It's your money, but you need the operator to recognize your interest in order to receive it. In other words, use honey rather than vinegar.
Permalink Reply by Spring Branch,mineral owner on July 8, 2010 at 5:52
HW, in all probability, you chose not to lease for one reason and one reason only..............after consideration, you decided that it was in your financial best interest to be an unleased mineral owner and to accept the higher risk for what you perceived to be a higher long-term reward. No problem with that. Business decisions like that are made daily by thousands of people, both informed and uninformed. Some of the decisions are good....some bad, but usually only time will tell. All professions have bad apples, including whatever one you've been involved with. It darn sure includes lawyers. You are not a victim! Become informed and treat the folks with the Oil ands Gas Company in the same manner that you would like to be treated. It will be in your long term best interest.
Permalink Reply by Kat Bloomfield on July 9, 2010 at 2:08
Pigs have value.
Parasites and freeloaders do not.
Pigs are intelligent.
Parasites and freeloaders are not.
Pigs eat more than they need. Thus, the term is apt when applied to O&G and to those of the O&G who dare to use pejoratives in referencing those that own miineral rights, but who don't play with O&G the way O&G wants to be played with. Kind of like pigs.
Permalink Reply by Kat Bloomfield on July 9, 2010 at 2:34
Is the O&G aptly compared to a pig? Well, let's see--it is the MOST profitable industry in existence and each year makes more and more and more money. Wikipedia notes that "Pigs . . . despite their reputation for gluttony . . . are generally social and very intelligent animals." We've all met the "friendly" "gregarious" "charming" "land[con]man." Many post or posted on this site rather insightful intelligent comments. And, the O&G executives and many of their employees sure have a lot more toys and $$ than others from other fields. Yet, most Fridays, they ain't in an office and are on the golf course or fishing or . . . Shoot, many never see the inside of an office and like the "monkey" joke about landman that was emailed about, kinda are seen mostly doin' nothing except once in awhile for the "big deal." Hmmm. I'd say quite apt.
Permalink Reply by P.G. on July 9, 2010 at 2:40
I have a pet pig and they certainly are intelligent! But in a self serving way that is.
It's not hard to get her to do tricks but will only do them if paid (in her case, given a treat). Bottom line! No treats, no tricks! No exceptions!
If you want loyalty, get a dog!

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