Owner Relations
Current Owner? Get a Form
Return forms by mail to Owner Relations, P.O. Box 2071, Fort Worth, TX 76113, or call (817) 446-9994 with questions.
How We Work With Owners
We acquire oil and gas wells in Texas in two situations. In the first, a well has no operator, and we lease the minerals from the owner to put it back to work. In the second, a well is already under lease, and we buy it from its current operator and take over. In both, we work with the owner, and we want the owner to come out ahead. Each situation works differently, so each has its own section below.
- We want owners to be glad they worked with us. That starts with being generous where it counts: a fair royalty, accurate payment on time, and as much of our time as you need to understand the arrangement.
- We lease land to operate it. We do not buy leases to resell them, and we do not hold leases on speculation. If we ask you for a lease, it is because we intend to put a well to work.
- We leave your land in as good a condition as we found it, or better.
- You can reach a person from our office when you call, get a straight answer, and expect to be paid what you are owed.
When a Well Has No Operator
Every well needs an operator who is responsible for it. The operator keeps the well in compliance with state rules and plugs it when its useful life ends. If the operator disappears or can no longer pay, no one is responsible. The Railroad Commission calls this an orphan well. The equipment stays on the owner's land, it may carry a risk, and it pays the owner nothing.
Why a new lease is usually needed
Most leases end when production stops. Without a valid lease, an operator has no right to produce from the minerals, so we need a new lease from the mineral owner. Only the mineral owner can sign one. Sometimes that is the surface owner, and sometimes it is someone else. If you are not sure what you own, tell us, and we will help you check the county records.
What we do
We review the well. If it can produce again, we lease the minerals and take over as operator. If it cannot, we tell you what we found and go over the alternatives with you.
Important lease terms
- Royalty: your share of what the well produces, written as a fraction of the value sold.
- Primary term: the number of years the operator has to begin production.
- Continuation: if the well produces, the lease usually continues for as long as production.
- Surface use: what the operator may do on your land, including roads, pads, and equipment.
- Bonus: a one time payment made when a lease is signed. On leases for idle wells, a bonus is typically not paid.
Before you sign
Read the whole lease, whether it comes from us or anyone else, and get advice from an attorney. We are glad to answer questions about ours.
When We Take Over a Producing Lease
What stays the same
Your lease stays in place and transfers to us. The terms you signed or inherited, including your royalty rate, still apply.
What changes
Two things change: who runs the well and who pays you. We file the change of operator paperwork with the Texas Railroad Commission, and we may ask you to confirm your name, address, and ownership share so payments go to the right place.
How your check is figured
A royalty check comes from three numbers: how much the well produced, what that oil or gas sold for (less taxes), and your share of the lease. We multiply them. We do not control the price, so your check can change from month to month even when the well runs the same.
Each payment comes with a statement showing the production month, the volume, the price, and your share. If a number looks wrong, call us, and we will go through it with you.
What you will see on your land
Technicians will periodically visit to check equipment, and trucks will haul oil and water. Occasionally, a well needs repairs that bring in larger equipment. Our employees and contractors are expected to keep gates closed, roads passable, and sites clean. If we plan significant work, we will tell you before it starts.
When a well stops producing
A well produces for as long as it is economical. When it no longer produces, the lease may end under its own terms, and Railroad Commission rules require the operator to plug the well and restore the site. We look after the equipment so a well keeps paying for as long as it can.
Common Requests
Changing your address
Send us written notice with your owner name, your old address, and your new one. An outdated address is one of the most common reasons payments are delayed.
Ownership changes
If an interest is sold, inherited, or placed in a trust, or if an owner's name changes, we need recorded documents before we update our records. The right documents depend on the situation, so call us first, and we will tell you what to send.
Tax forms
We send year-end tax forms in January. We require a W-9 on file before payment can be issued,
Contact
Owner Relations
Lyonsworth Petroleum
P.O. Box 2071
Fort Worth, TX 76113
(817) 446-9994
owner-relations@lyonsworth.net
