if you do not lease, the driller legally can and will bill you for your share of the drilling and well operation costs--in essence you become a part operator of the well. Chances are the driller will take some or all your royalty check as payment until those costs have been covered. Since wells cost 5-6 million dollars, even if your share is only a small percentage that is still a lot of money. By not leasing you assume some of the risk of the well being a producer, whereas if you lease the driller and other non-drilling participants in the well assume that risk.
There is state law on the dmr site that explains this all in further detail. If you lease the driller pays all drilling and operation costs and sends you your royalty payment for your mineral acres according to the % and other terms of the lease you signed from the first day of well production. That is why its advisable to lease. On Sep 27, 11:59�am, Liz <[EMAIL PROTECTED]> wrote: > I know this has been covered before, but cannot find the text. �I > would appreciate someone explaining what are the financial > responsibilities of someone who has not signed a lease for mineral > acres on which an oil well is being drilled. �Also, the pros/cons of > doing so, in contrast to a lease holder. > > Thank you so much in advance. > > Liz --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/bakken-shale-discussion?hl=en -~----------~----~----~----~------~----~------~--~---
