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Producing Appalachian Mineral and Royalty Interests
A producing interest is connected to a well or unit that is currently generating production, and it usually comes with a paper trail: a lease, a division order, and periodic royalty statements.
How a producing interest is paid
Operators calculate a decimal interest for each owner in a unit, generally based on the owner's net mineral acres in the unit, the unit's total acreage, and the royalty fraction in the applicable lease. That decimal is applied to the unit's production revenue.
Because the decimal reflects one unit only, it does not tell you the full extent of your mineral ownership. An owner can be paid on part of a tract and hold unleased acreage elsewhere.
Why payments change
Monthly amounts move with volumes and prices. Wells decline over time, especially after the early months of a horizontal well. Maintenance, curtailment, pipeline constraints and market conditions all affect a statement.
Deductions permitted by a lease can also change the net amount. What is permitted depends on the lease and on state law.
Information that helps a review
The more of the following you can supply, the more complete a review can be.
- Operator name and well or unit name
- API number, if you know it
- Recent royalty statements or check stubs
- Your division order
- The lease and any amendments
Frequently Asked Questions
- What is the difference between producing and non-producing mineral rights?
- Producing interests are connected to active production and may generate royalty payments. Non-producing interests are not currently generating production income, although they may be leased, previously produced, located near development, or have possible future interest. Production status is only one factor considered during a review.
Important disclaimer
AppalachianMineralBuyer.com is owned and operated by Titan Property Investors. Information on this website is provided for general educational and lead-submission purposes and is not legal, tax, title, geological, investment, or financial advice. Mineral laws and ownership procedures vary by state. Mineral ownership and value depend on the specific facts, documents, records, and laws associated with each interest. Consult qualified legal, tax, title, and other professionals in the state where the minerals are located. Submitting information does not create a contract, representation agreement, or obligation to sell and does not guarantee an offer.
AppalachianMineralBuyer.com is not affiliated with any state, county, regulatory, or government agency.
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