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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on December 21, 2022 at 3:55

John, Louisiana's mineral code requires that operating companies pay unleased mineral owners their proportional share of production (8/8ths.) less Lease Operating Expenses (LOE) on a monthly basis once a well has reached a 100% return of the net cost to drill and complete.  The code also requires a well operator to provide quarterly revenue and expense reports to unleased mineral owners in order for them to track the well to payout.  The unleased mineral owner must make demand by certified letter for the operator to provide the quarterly reports.  There is no cost to the unleased mineral owner, their share of production is applied to their percentage of the well cost until the well reaches payout.

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