Who pays - Operator or Leasing firm

If you're leased, and a well gets drilled, who sends payments, the operator or the leasing firm?

We're not drilled yet, but hope to be soon, and need to discuss who owns the mineral rights after a death and succession.

I'm assuming the operator handles this, because a lot of the leasing firms seem to have been almost fictional legal entities anyway, who have probably vanished by now.

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Permalink Reply by Two Dogs, Pirate on June 12, 2009 at 9:47
Operator pays. Contact the operator and tell them about changes in the title.
Permalink Reply by Two Dogs, Pirate on June 12, 2009 at 14:07
Listen to KB & Krow, been a real hard day for me and wasn't reading as deep into the question as I should have been.
Permalink Reply by Mac Davis on June 12, 2009 at 11:15
Thanks.

In practice, do the royalty checks tend to come from the lessee or the operator?

Sounds like another opportunity for things to get ugly. What happens if the lessee goes bankrupt, goes out of business, dies, flees the country a step ahead of the law, simply refuses to pay, or can't be found? Can the operator keep operating without paying?

And yes, we do have a judgment of possession and have notified the lessee, who has not responded in any form, or returned phone calls.

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