Replies to This Discussion

Permalink Reply by RAZORBACK on May 25, 2012 at 11:04

As of May 25th all that OPS would tell me is their client (Matador 5 out of Arkansas) has contracted them to operate the well.  Division order was sent out and now they are being told by Matador that legal verification of royalty owners interest is still underway.

I checked out Row 1-29 on the Arkansas Oil and Gas web site and find that the well has been in production since 8/1/11. 

I am wondering what the normal time is between first well production and when the royaty owners recieve their first check?  Comments are welcome.

Permalink Reply by Bill Hill on May 25, 2012 at 13:31

For first sales, Payment is due 6 months after the date of sales.  If you have marketable title, then interest is due at 12% for late payment.  If you can, google Arkansas statute 15-74-601,15-74-602, 15-74-603,15-74-604.  This pretty much lays out what the operators responsibilities are to the royalty owners.

Permalink Reply by RAZORBACK on May 25, 2012 at 14:12

Bill,

Thanks for the information.  Most helpful.

Permalink Reply by RAZORBACK on July 21, 2012 at 15:54

Still no information offered by OPS as to when royalty checks will be issued.  Have called numerous times with no answer.  Arkansas Oil and Gas web site shows additional months of production.  This well is active.  Any advice as to how to get information on the status of royalty distribution would be appreciated.