Add a Comment

Comment by Skip Peel - Mineral Consultant on October 22, 2019 at 13:35

Yes, okay to post on Main Page.  In our parlance, you are a UMI (Un-leased Mineral Interest) and as such you have rights and protections under the Louisiana Mineral Code.

Comment by Ron Hance on October 22, 2019 at 13:32

My minerals are in Louisiana.  

I will post my question on the Main Page too, if that is ok?

thank you for your help.  This is complicated.  

Comment by Skip Peel - Mineral Consultant on October 22, 2019 at 4:47

Ron, FYI, the blog section of the website is hardly ever used.  It is for long form, informational posts.  Your question is best posted on the Main Page.  Scroll down and find Add a Discussion.  Your question, here, does not specify location.  The rules governing unleased mineral owners varies state to state.  Since you are here on GHS, you are likely a Texas or Louisiana mineral owner so please include that.

The short answer for Louisiana is that no you don't have to pay well costs.  The well operator withholds production payments until the well reaches payout (100% recover of drilling and completing expense).  After payout an unleased mineral owner will receive production payments equal to their acreage as a percent of the unit acres (100% as opposed to say 25% for someone with a lease) less Lease Operating Expense (LOE).