How long can a well be in production before royalties are paid?  I have interest in a well nesr Greenwood that has been in production several months, no division order or any communication from the company (Ensight).

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I suspect that you are referring to the M&K MIN 33-4 HC #1 completed 2/16/19.  Have you contacted the company?  They will likely let you know when to expect a DO and first royalty.  The state doesn't usually get involved until 180 days and even then there can be extenuating circumstances.  I don't think there are any with this well although Ensight IV has not reported any monthly production that appears on SONRIS as yet.  I would expect that DOs would have been sent out before now even if first royalty had not been paid.  Ensight IV doesn't have much history as they are new Haynesville operators.  If you don't hear something by mid-July, get back to me and I'll see what the staff at the Office of Conservation, Shreveport District office have to say about this well.

  1. Thanks. 
I have tried to contact the company but cannot get any communication. There are 2 wells that Ensight has drilled in this area. I would be interested in what your contact with State knows.

The state knows nothing regarding the payment of royalty to private mineral interests.  They can't help you.  The mineral code does not require payment within a specified period of time post first production.  The code does however say that if you are not paid by 180 days, you may make a demand for payment plus interest.  My bet is that Ensight withholds payment until somewhere close to 180.


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