In this episode we answer listener questions submitted by Pam, Les, Rebecca, “buttacupss7” (YouTube comment), Greg, and Al. This episode was filled with questions ranging from negative royalty “payments”, horizontal pooling, how to interpret your oil & gas lease, getting started with mineral investing, API numbers, and more.
Some of the listener questions in this episode are addressed in my Mineral Management Basics online course, from how to read a legal description, how to perform a title search, and how to identify nearby oil and gas activity, and how to determine if you should be getting paid on a well.
Thanks again to everyone who left a review or who submitted a listener question! If you have a question about your minerals or royalties, you can send it to feedback@mineralrightspodcast.com and who knows we might just answer it on the air!
If this has been helpful, please take a moment and leave us an honest rating & review on Apple Podcasts. This feedback really helps keep us going and helps make sure that we are putting out content that is tailored to your needs.
Listener Question #1
Hello,
I am receiving royalties from the Marcellus shale in Pennsylvania.
While I used to get monthly checks from 5 different companies, last year I only received from two and a third a couple months.
One of the companies threw me into negative status for several months because, they say, the court in Pennsylvania has upheld them being able to deduct fess that they had not previously.
My question then is, can I claim a loss on that negative account? They are still taking my gas, but yet I’m not being compensated; I am being charged.
Thank you for any assistance you can provide.
Pam
Listener Question #2
“If we own mineral rights in Reagan county, TX where we have vertical wells. Can an oil company drill from Glasscock county horizontally under our lease and tap our resources? We have a percentage of a lease (171 ac.) and the horizontal wells are passing all the way through our lease from 2 miles away. The company shares in our lease as well as the other.”
Pioneer has the majority of our lease in Reagan county. We receive a very small % from the vertical wells that have been there for many years. Now Pioneer drilled 2 wells from over 2 miles away and claim we have no rights. Please help.
These horizontal wells were drilled over 2 years ago with a 3 mile horizontal that runs through Reagan County in the last mile.
Les
Listener Question #3
Hi Matt,
I am just now responding to one of your emails and very much regret not becoming more active before now. My family has a royalty interest in Louisiana with the current producer being Diversified Energy. We inherited this interest and I can’t seem to find an end to the lease which has been bought and sold multiple times over the past 15 or so years. We do not get much in the way of royalty payment; however, every bit helps. How do I go about finding a financially reasonable attorney?
Any suggestion you may have would be appreciated. I just have difficulty understanding how this lease cannot have an end date.
Thank you very much.
Rebecca
Listener Question #4
Question from YouTube:
buttacupss7
Hi. We signed a lease in 2011 and it says in terms after 5 yrs. They would pay the original bonus plus 10% and continue 5 more years. It’s 2024 and they haven’t paid said bonus. What should I do?
Listener Question #5
Hi – enjoy your podcast. Thanks for putting it together.
Do you often come across mineral right portfolios for sale? It looks like you acquire and value mineral rights through Silverheels. I’m looking to acquire some interests and am just getting into the space personally. I have worked in Oil and Gas deals before with institutional capital but would self-rate myself as knowledgeable, but inexperienced.
Thanks.
Greg
Listener Question #6
Hi Matt,
Suggestion for podcast topics:
- Why do some operators (Denbury) not provide the API number in revenue statements and only provide their custom “property name” and “property id”.
- How can I definitely associate an operator’s “property name/id” to an API Number?
Thanks,
Al
Resources Mentioned in this Episode:
Mineral Rights Education
- Mineral Management Basics Online Course
- National Association of Royalty Owners
- 1-on-1 Coaching with Matt
Negative Royalties / Deductions
- MRP 13: Royalty Audits and Litigation with Attorney Spencer Cox
- MRP 53: Negative Royalties and What to Do When Your Well Gets Shut-in
- MRP 72: What You Should Know About Post-Production Costs
- MRP 162: Understanding Prior Period Adjustments
Books
- Never Split the Difference by former FBI Hostage Negotiator Chris Voss is THE book on negotiation.
How to Make Sure You are Getting Paid Correctly
- MRP 3: How to Calculate your Net Revenue Interest in 3 Simple Steps
- MRP 97: How to Audit Your Oil and Gas Royalty Statements
- MRP 103: How to Find Out if You Have Unclaimed Royalties
- MRP 166: How to Read and Manage Your Royalty Statements
- MRP 224: What to do About Late Royalty Payments
- MRP 227: How to Find Oil and Gas Info for Oklahoma
Investing in Minerals and Royalties?
- MRP 66: Dormant Mineral Rights. Do Mineral Rights Expire? (Link to states with dormant mineral statutes)
- MRP 126: Deep Dive on Investing in Mineral Rights, Royalties, and Working Interests
- MRP 128: Investing in Minerals and Royalties with Jarrett Kitch
- MRP 159: Guide to Buying Mineral Rights
- MRP 160: Strategies for Investing in Mineral Rights
How to Negotiate a Lease / Pooling
Thanks for Listening!
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Thanks again – until next time!
