Cindy, much of the time between a well being turned to sales and the arrival of the first royalty checks is spent in title reviews for the preparation of a division order. In general, the few ownership interests in a unit the less time it takes to prepare a title opinion. In units with a handful of owners it may take a few weeks. Conversely ...., well wait until urban drilling begins in earnest.
Thank you for your answer. Maybe you or someone out there can help me with another question. The completion date of our well was 05/17/2010. The report date was 07/09/2010. We received a letter from EXCO this week that the report of FIRST SALE was e 10/13/2010. Still no mention of a royalty payment. Will the payment go back to the completion date, the report date or the date of the first sale??? Thank you for your response. Cindy
Brasch family well #239869 started producing MAY 17, 2010.
I guess we will be waiting 6 months for payments because EXCO said they are still working on ownership papers. When our family signed the lease they had all the ownership papers they needed. Once our family starts receiving royalty payments will the payments start back in May, when the well started producing, or how does that work??? Does anyone know how this works?? Thanks cindy
In a best case scenario you should not be expecting your initial royalty payment prior to September 1. EXCO is likely still working on the entirety of the mineral titles in the unit, not just on yours which could very well be finished. Operators don't start paying each mineral interest as they confirm title on each tract. Your initial royalty check will be for multiple months going back to the first day of production.
Yes it's actually quite normal. The DNR is so backed up that the average update is around 90 days behind. It may show as a status 01 (permitted) and not have a status change to 10 (producing) for several months. There are no codes for drilling, completing, waiting on pipeline, etc. The best and most up to date info can be found in the Scouting Report section about halfway down the page on the well information sheet.
EXCO called us again today about the Brasch Family well which has been on production since May 17, 2010. The EXCO represenative told us that CHESAPEAKE was drilling this well for them and CHESAPEAKE has not paid them so they can't pay us. Last week we were told we were not being paid because all of the ownership paperwork was not complete. Last month we were told we were not getting paid because EXCO was short handed. Maybe all of the answers above apply. Has anyone else been told that Chesapeake is not paying EXCO?? Thanks cindy
What do I ask for in the demand letter, also would we ask for interest, since I know that this well started producing in May of 2010? I am not sure how all of this works, but I think if the well has been producing and CHESAPEAKE is not making payments something should be done. Cindy Rinaudo
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