landowner

Ratified Pooling Agreement

I ratified a pooling agreement (non participating royalty interest) with Operator A in a 640 acre unit.  Operator B drills and completes a well within this 640 acre unit. Should Operator B be required to pay royalties?

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Oil & Gas ProPermalink Reply by The_Baron on June 22, 2011 at 3:49
What State?

landownerPermalink Reply by Big Dave on June 22, 2011 at 4:49
This is in Texas

Oil & Gas ProPermalink Reply by The_Baron on June 22, 2011 at 9:53

It will depend on wither or not your tract is the drillsite. I believe (TX is a little outside my realm) that if it is not the drillsite you can be cut out of the unit if you are a non-participating interest.

 

I would suggest you call an attourney experianced in TX mineral law.

Permalink Reply by jffree1 on June 22, 2011 at 10:21

http://www.gohaynesvilleshale.com/group/knowyourrightstexasminerallaw

 

I would ask Ben Elmore.  He is a Texas Oil & Gas Attorney.

 


Oil & Gas ProPermalink Reply by Ben Elmore on June 24, 2011 at 11:23
I was perusing the site and just saw this.  As an NPRI owner, the acreage in which you own an NPRI is covered by a lease that it sounds like is owned by Operator A.  I expect the pooling agreement you signed ratifies the unit and the lease.  Check the pooling agreement you signed and see if it references a lease relative to your interest.  In any event, you will likely be paid your royalty by Operator A.  It sounds like Operator A either farmed out to Operator B or entered a joint venture with B.  In either case, the two will contract how royalties are to be paid, and it can either be they each continue to pay their own royalty owners, or one or the other assumes the obligations to pay royalty owners.  You will find that out when you get your first check.  But again, I expect it will come from A as the original owner of the lease binding your NPRI interest.

landownerPermalink Reply by Big Dave on June 24, 2011 at 15:19
Ben - I didn't mention that I had another lease (which I was paid a bonus) with Operator C. I received my first royalty check from Operator B for this tract which was also within the 640 acre unit and not located on the drill site. Sould I be contacting Operator A for resolution? By the way I am a complete newbie on this situation.

Oil & Gas ProPermalink Reply by Ben Elmore on June 26, 2011 at 4:15
Yes I would start by contacting A.

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