Questions about new cross section wells

SWN recently completed four multiple section wells in 14N-14W. Two start in section 8 and go south, two in section 17 and go north.

The first payment details showed up this week.  I have two questions.

1. How can I find out the length of the perforations for each section for each well so I can verify that the owner percentage is correct?  The last time I had a well like this Exco sent the data before the first payment. I looked at the well information (history and other docs) on SONRIS but did not find anything.

2.  Is the severance exemption for unconventional wells still in effect?  They charged severance tax from the first cubic foot?

Thanks in advance for any help.

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Permalink Reply by Skip Peel - Mineral Consultant on November 25, 2022 at 13:21

First question: yes, eventually.  Second question: yes and no.  There will be a "perf letter" entered in the SONRIS database that details the linear feet of perforated lateral lying in each section/unit.  This usually takes a little longer than the reports you will see in the database now.  The severance tax is charged by the state from first production and operators pass that cost along to mineral lessors until such time that the operator submits and the state approves the well cost statement.  Before severance tax can be "rebated" the submission and approval must come first.  After that has occurred , your revenue statement will catch you up on the severance tax and you will see a credit for each month that the severance tax was deducted.

Permalink Reply by full name on November 25, 2022 at 14:01

Great!  Thanks for the quick reply.  Your help is always appreciated.

Permalink Reply by Skip Peel - Mineral Consultant on November 25, 2022 at 14:10

You're welcome.

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