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To: kjam22
Having minor royalty interests in both Texas and Arkansas, can't say about Oklahoma, but “But every royalty owner always has the right to participate in the well.” is not correct, depending on the meaning of participate. If a minor interest owner refuses to lease, the State will not allow the refusing owner to stop the well. You will be included like it or not.

Theoretically, the refusing owner will get the “standard” lease royalties, but the developer has no obligation to find you to give you a check.

22 posted on 01/01/2013 11:37:02 AM PST by X-spurt (Republic of Texas, Come and Take It!)
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To: X-spurt
Yes... Participate in the well means spend capital and be an interest owner, not just a royalty owner. If you have 10 acres and the well is spaced at 100 acres... if you participate, you would have to fund 10% of the well. If you are a royalty owner you pay for nothing, but give away maybe 13/16 of your minerals to a producer providing the capital.

You're correct though. A mineral owner who doesn't want to produce will be "force pooled". Corporation commission will force their interest to be produced to accomodate everyone else who wants to produce. The person being force pooled will be given a deal by the operator that is equal to the best deal that operator has given anyone else in the same or neighboring counties. One advantage to not signing a lease. You're guaranteed the best "deal" financial, if you make the commission force pool you.

23 posted on 01/01/2013 11:49:21 AM PST by kjam22 (my newest music video: http://www.youtube.com/watch?v=l7gNI9bWO3s)
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To: X-spurt

What I mean is no one has to lease to a producer. Everyone has the right to participate in the well as a working interest owner. But you’re correct... you generally have to do one of those two options if everyone else wants too.


25 posted on 01/01/2013 11:52:08 AM PST by kjam22 (my newest music video: http://www.youtube.com/watch?v=l7gNI9bWO3s)
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