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<blockquote data-quote="Allen" data-source="post: 202499" data-attributes="member: 389">Yes, we know they partner on wells, although that is not quite the terminology used.&nbsp; There are generally operator, and non-operator interests in a given well.&nbsp; The operator is usually the one with the larger share of the spacing unit.&nbsp; That is the entity that gets to make all the decisions, the others are just expected to cut a check for their share of the expenses.And that is especially true of mineral rights owners who refuse to sign a lease, they will eventually get force pooled into the well as a non-operated interest.&nbsp; Generally since they don't have the $$$ to pay for their share of the upfront expenses on the well (drilling, frac'ing, etc) they get their oil revenue withheld by the operator until the well is paid for, after which their expenses are deducted from oil revenue.&nbsp; You said they just now hedged for $62.50, which month(s) of what year?&nbsp; At this point I'd think they are generally hedging for the very last part of 2018 or into 2019.&nbsp; Some operators are hedging all the way out into 2020 already.</blockquote>

[QUOTE="Allen, post: 202499, member: 389"] Yes, we know they partner on wells, although that is not quite the terminology used. There are generally operator, and non-operator interests in a given well. The operator is usually the one with the larger share of the spacing unit. That is the entity that gets to make all the decisions, the others are just expected to cut a check for their share of the expenses. And that is especially true of mineral rights owners who refuse to sign a lease, they will eventually get force pooled into the well as a non-operated interest. Generally since they don't have the $$$ to pay for their share of the upfront expenses on the well (drilling, frac'ing, etc) they get their oil revenue withheld by the operator until the well is paid for, after which their expenses are deducted from oil revenue. You said they just now hedged for $62.50, which month(s) of what year? At this point I'd think they are generally hedging for the very last part of 2018 or into 2019. Some operators are hedging all the way out into 2020 already. [/QUOTE]

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