State Statutes Regarding Minimum Payments
Benefits
- Marginal wells stay in production longer, resulting in increased total royalties paid to you.
- You have a choice in frequency and accumulated amount of your payments.
- You can receive fewer "small" royalty checks, possibly reducing bank transaction fees. It will also decrease your bookkeeping for small checks.
- When a well ceases to produce or the payor's responsibilities change, accumulated revenues will be paid, helping you keep track of your assets.