I, my 4 siblings and Uncle (recently deased), now 3 cousins apparently have a non-participating interest in 42 acres on a 550 acre unit. We signed an Acknowledgment and Ratification of Oil, Gas and Minerals Lease??? What did we sign, as we knew nothing about any of this before getting paperwork in Mar 2010?

The land is part of the Nathan Davis Survey, A-147. Suppossedly 13-17 mi SE of Central, west of Shelby?? Thee was something about Cr 1095 & 1097 or 1098 also. Our part is 42 acres of a 550 acre unit. Or so I am told. I was also told that the first well "came in" after about 60 days and 2 others after that? How do I find out what they are doing-- ie production..whatever?

 

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That would be St. Mary L & E, now SM Energy. They have a 559.19 acre unit (Boone Unit) and a 759.42 acre unit (Crockett Unit). They both have acreage in the N. Davis Survey, A-147 and both have 42 acre tracts, so it's a tossup but I'd go with the 559.19 ac. unit unless you learn something different.

You will eventually receive royalties from whichever unit you belong to. Boone is still being drilled and Crockett finished drilling in July. I have not heard an IP for Crockett yet and it has not reported any production through August. So, you will have to settle down to wait. The next thing to happen is that they will send you a Division Order to sign so they can send you a royalty check. Congratulations!
jffree,

It would probably be Crockett as I was told it the first 1 was finished. We actually GET $$$ huh? Would it be possibly alot. An conservative example Please!!! I was also told about a few more wells going in???

Thank you for the info.
Correction-- Somewhere I read the name Boone in research.
Hopefully, you will eventually get more wells in your unit.

Since I don't have any idea what your % interest in the unit is, it would be really hard to make any estimate as to what size check you could expect.

You can go to Geology.com and play with their royalty calculator to see what the variables are and how they effect your expected royalty payment:

http://geology.com/royalty/

Just remember that these calculators don't take decline curve into consideration when projecting out over a year. Haynesville wells come in big and decline sharply over the first 6-8 months so expect your checks to reflect that decline in production and don't spend royalty monies until you have the check in your hand. And, don't forget to put some back for taxes. Royalty income will be considered "Regular Income" on your tax return for the year.
jffre,

There are 8 of us with 10% apiece. Waiting is soooo hard. Are there any websites that would have well production info on them?? Having Fun with all this!!
Texas Railroad Commission - TRRC for short.

Production Query:
http://webapps.rrc.state.tx.us/PR/publicQueriesMainAction.do

But you have to have the API # or the drilling permit # or the Lease ID #. Right now you will only be able to find the first two. If all else fails, you can search for production by operator, using their ID number.

Or, you can just ask me to look. I keep track of well permits, drilling status, completion reports and production reported for Haynesville wells in TRRC Dist. 6.
Please look. I found all this, will it help?

Justiss Drilling Co. 54 Boone 1 H SM Energy 698579 419 31608 Shelby Carthage (Haynesville Shale) 8/25/2010 Horizontal TX
It is not in production yet... still drilling last Friday. If you are able to find the API and permit number then you should be well able to navigate the production query.
This TRRC link will point you to the Boone well information that you listed in an previous post.
10% of what? I assume you mean the non-participating roy int. (NPRI)

To even guess, you'd need to know the terms (royalty) of the lease covering the 42 acres and the details of your NPRI (the exact wording from the document creating it would be great).

Since you were not aware of it, I'd bet it is an older document. I'd bet your grandparents owned the property and reserved the NPRI in the sale of the same.
Ron Jon,

My Grandmother and her 11 or 12 siblings owned it. She conveyed in 1952. I own 10% of 50% of the 42 acre but I think they "pooled" it. 1/8, I think the thing said .035. I did not make a copy of the paperwork and they only sent me the 2 page ratification papers.

Whereas the undersigned is an owner of a non-participating royalty interest in and to the above described tract of land covered by said leases and desires to adopt, ratify and confirm said leases insofar as they cover the right, title and interest of the undersighned in and to the land described in said leases.
The unit is 559 acres. You own 10% of 50% (5%) of 42 acres which is 2.1 acres. 2.1 acres is 3/10ths of a percent of the total unit. Let say the lease you ratified is for a 25% royalty. That means that if the well made 1 million dollars for example you would be entitled to 25% of .003 of 1 million or $750. These are just demonstration numbers to give you an idea but you might expect to make about $750 for every $1 million the well pulls in. You can get a better idea of your real money when you see a division order.

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