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To: Wolfie

They’re not taking anything from her, she’ll get her bonus and royalties. I’ll bet she cashes the check’s also.


6 posted on 03/31/2014 5:57:40 AM PDT by Dusty Road
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To: Dusty Road

I believe, if she refuses to sign a lease, there is no bonus or royalties payment.

After all expenses are paid, and some specified profit (usually a factor of the expenses) she will receive 100% of her share of the production, her acreage/divided by the unit acreage.


8 posted on 03/31/2014 6:04:59 AM PDT by thackney (life is fragile, handle with prayer)
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To: Dusty Road
They’re not taking anything from her, she’ll get her bonus and royalties. I’ll bet she cashes the check’s also.

She won't get a bonus. That's for signing a lease. She will, however, get 100% of what they pull from her land instead of maybe 25% for leasing. She essentially becomes a partner in the well with the driller.

If a well costs X million to drill her royalties will be used to pay off her share of the well. Then she will start receiving 100% of her royalties.

10 posted on 03/31/2014 6:15:30 AM PDT by TangoLimaSierra (To win the country back, we need to be as mean as the libs say we are.)
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To: Dusty Road

“They’re not taking anything from her, she’ll get her bonus and royalties. I’ll bet she cashes the check’s also.”

Exactly. Also, though I’m no expert on PA’s forced pooling statute, a nonconsenting landowner gets to elect among a number of options: (i) lease (or be deemed to have leased), in which case they get bonus and royalty, (ii) take a carried interest, or (iii) participate for the amount of net acreage they have in the unit. Usually, if they refuse to elect, they will be deemed to have leased their interest, in which case they will be compensated like the other owners.

Assuming their tract is intersected by a lateral well, which is unlikely for a small tract owner, the well will be a mile under their property.

But for forced pooling statutes, one whacko could keep an entire community from reaping the proceeds from oil and gas under their property.


15 posted on 03/31/2014 6:27:36 AM PDT by SharpRightTurn (White, black, and red all over--America's affirmative action, metrosexual president.)
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