landowner

Broken Frack Line Delays Payment in Section 20

After 2 and a half years we finally recieve a royaltie check in July 11 for the months of March through July 2010. Then a week later another bonus check to extend the lease. I'm confused as to why being that it's obviously producing if we are getting royalties, so I call. They inform me that when they drilled the section beside us they broke our frac line so it has been a non-producing well since August 2010 and had to repay the bonus to excersize the 2 year option so it could be fixed.My question is why wait a year now and have done nothing to fix this line? Why repay the landowners if they're not making any money? We were so excited to finally recieve a royaltie check just to find out it might be the only one. And it took 2 and a half years to get that. I was told that it took so long because the well was offline and the accountants had overlooked paying us because of it! Any new info on this section anyone?

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Replies to This Discussion


Oil & Gas ProPermalink Reply by Les Bamburg on August 24, 2011 at 3:45

Cassie, the following is the monthly production information from Sonris in thousand cubic feet (Mcf) of natural gas.

 

Mar, 2010    365,257 Mcf 
Apr, 2010    364,037 Mcf 
May, 2010   167,672 Mcf 
Jun, 2010     225,813 Mcf 
Jul, 2010      48,994 Mcf  
Aug, 2010    218 Mcf 
Total            1,171,991 Mcf

 

Forest does not have another permitted well in your section but they do have one drilling rig working in the area.


landownerPermalink Reply by Cassie on August 24, 2011 at 11:06
 I knew that Les B, my question was why have they not fixed it and why did they repay us for a well that they have chose to leave offline for a year. Thanks for responding though, I do appreciate it.

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 24, 2011 at 11:18
That was probably a shut-in payment.

landownerPermalink Reply by Cassie on August 26, 2011 at 8:46
They told me it was a bonus payment for the 2 year option since it was a non producing well at the end of the original 3 year lease and that they had to pay it to be able to go in and fix the frac line to get back online. What is a shutin payment?

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