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Oil/Gas/Royalty payments

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Question
We have a producing oil well in Burke County, ND.  We started getting checks in the amount of $4200 - 5700 per month.  In March it was only $2200.  Is this normal? The well has only been active for 10 months.  Will be see a rebound?

Answer
Darllene,

It depends on the well.  Generally, they produce a lot at the beginning and taper off.  Sometimes production will fall due to maintenance to the well, or the timing of the truck that hauls the oil away or other reasons.  Unfortunately, I don't know enough about your particular well to know exactly why the royalty check was less this month.

Best regards,  

Oil/Gas

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Mark Bonner

Expertise

Interests include oil and gas leases, mineral deeds, royalty payments, interest on late royalty payments, post-production costs.

Experience

I have been an attorney for over 20 years.

Organizations
Norman & Edem, PLLC 127 N.W. 10th St. Oklahoma City, OK 73103 405-272-0200 (Tel.)

Publications
Oklahoma Bar Journal; Oklahoma Association for Justice Advocate

Education/Credentials
Highest Honors, OU College of Law, 1992 Earl Sneed Award for Oil & Gas

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