Replies to This Discussion

Permalink Reply by Aubrey C. Sanders, Jr. on July 22, 2011 at 11:53

Was the well which is completed drilled as a unit well or on a lease basis? If the original was drilled simply on a lease basis only those persons who own the leased land would be paid royalty. Upon establishment of a unit then all persons in unit will be paid on all wells within the established unit.      i am not very familar with Tx. rules, but do know that is how it works. IMO you are unlikely be paid any royalty for prior production. I believe you should get professional advice before signing. Hopefully one of our professionals in Tx. will speak up on this. At any rate, you should be in good negotiating position, but only up to time you sign lease. Once you sign lease your land hopefully will by HBP for next several generations. Best of luck.

Permalink Reply by jffree1 on July 22, 2011 at 14:59

Which well is it RR?

Permalink Reply by DJG on July 22, 2011 at 17:40

Best to shoot your question to a qualified O&G attorney, but if my own minerals were going to be added to an existing unit I certainly would be arguing to be paid royalty from date of first production on any prior production from that unit.

Permalink Reply by Ben Elmore on July 23, 2011 at 11:28

Once you are included in the unit, you will receive your proportionate share of royalty. The only issue is if there was any production before you are included in the unit. Unless you include an express provision in your lease, you will not receive your royalty share of production that occurred before you were included in the unit. Definitely add an express provision specifically identifying this well, and stating that you will be paid royalty from date of first production.