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Oil/Gas/Termilogicy on well data reports


I own mineral rights on property in Fayetteville Shale,the data report now states some of the wells are active,some producing. What does active mean,and are royalities paid on an active well?
Thank you

Terminology could change from person to person and state to state.

I would recommend finding all of your recorded documents and see what they say.

Better yet if you know the property go for a drive and write down all of the contact numbers on the wells. Each well should have a sign that has some important information on it. Get the API number of the wells and then pull the production records. You should be able to do all of this online but it most likely will be difficult for you if you do not have experience.

You should have some sort of document that is recorded somewhere. That document has to reference something that defines those words.

If you have time find out where the oil and gas leases are held, they are public information. This could be at the county clerks office. Go there and try to pull the exact lease, it might be there. At the least it will be signed by someone (an attorney) who drafted and/or recorded the document.

If it was me I would pull the production records and compair it with your checks.

I could go out on a limb and tell you what I think it means but contracts and agreements can be worded to mean something entirely different that what I think. Sorry.

Hope this helps.
Chris Termeer


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Chris Termeer


I can answer a broad variety of questions about oil and gas in the upstream, midstream, and downstream sectors of the industry. Topics of knowledge include but are not limited to: * History of the industry * Basic questions about formation of hydrocarbons (hydrocarbon window, geologic processes that create oil and gas formations) * Types of formation structures, source rocks, and traps * Surrounding production analysis (how to, importance of etc) * Basic questions about magnetic surveys, geometric surveys, seismic surveys (2D and 3D) and radiometric surveys. (Including relative strengths and weaknesses and how performed.) * Basic questions of cable tool drilling * Complex questions about rotary drilling, its components, operations, how to set up a rig. Drilling operations including fluid/mud, cuttings analysis, downhole testing, directional drilling, making and tripping pipe, cementing casing (importance of and how performed etc), common drilling mistakes and problems. * Complex questions about post- (though sometimes occurs during) drilling activities such as well logging, sidewall and whole core sampling, drill stem testing, reserves analysis and projections. * Basic questions about well completions including installation of surface wellhead and subsurface safety valve, well perforations, lateral and horizontal completions, hydraulic fracturing, (I prefer the spelling form "fracking" for the active verb and "frac" for the noun form) and wellbore swabbing. * Basic questions about so-called "flush production" (others call primary recovery) such as natural gas drive, water drive, compaction drive and gravity/dip drive. * Complex questions about artifical hydrocarbon lift technologies such as the sucker rod pumpjack, plunger lift pumps, gas lift pumps and electric subsersible pumps. * Basic questions about secondary and tertiary recovery techniques including water flooding, gas injection (be it CO2 or N), anaerobic recovery and so forth.


I have worked in this industry for many years and have at least some experience in all aspects of it. My specialty in recent years has been in upstream exploration and production. I have worked as a Consultant and general partner for a variety of projects in Texas, Illinois, Louisiana, Colorado. My experience is also built on my extensive writing in the oil and gas industry on a series of blogs and websites and my recently published book, Fundamentals of Investing in Oil and Gas.

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Self-published author of Fundamentals of Investing in Oil and Gas, (ISBN: 978-0-9890434-1-0 and Library of Congress Control Number: 2013906080) Contributing author on

Bachelor's of Science from Michigan State University with a variety of other coursework at other Universities including the University of South Florida and University of Wollongong.

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