City gets royalty payment from oil well
Published: July 17,2013
Tags: butch brown, city, city government, city of Natchez, crude oil, DRAYCO Exploration, energy, fuel, gas, gasoline, Joyce Arceneaux-Mathis, municipal, municipality, natural gas, Oil, oil well, royalty
NATCHEZ — The City of Natchez has received $76,500 for its share of royalties from an oil well.
Mayor Butch Brown tells the Natchez Democrat the check covers a period from December through May.
Alderwoman Joyce Arceneaux-Mathis, in whose ward the well sits, wants aldermen to have a finance committee meeting to determine if the money should be set aside for a particular use.
The city is expected to receive monthly royalty payments from the well. The recent check was payment for the first six months of the well and was delayed until a division order was finalized.
A division order tells an oil company how to pay the well’s royalty owners by listing each owner of an interest in production and that owner’s share of the production revenue.
The oil well was drilled by DRAYCO Exploration and was approved by the city in November 2011. Arceneaux-Mathis told aldermen in October 2012 that the well had struck oil.
The city owns three-sixteenths of the well. Officials had estimated that it will receive about $30,000 a month from the well.
Brown said the well’s operators have slowed output of the well in an effort to make its production period longer.
Brown said the city will likely receive about $12,000-$15,000 monthly from the well.
He said final details are being worked to drill a second well at the site.
To sign up for Mississippi Business Daily Updates, click here.
One Response to “City gets royalty payment from oil well”
Top Posts & Pages
- Bids on reworking Interstate 55 stretch are rejected
- Spivey named Under 40 Business Person of the Year by the Mississippi Business Journal
- JACK WEATHERLY: Economic development in these parts is a ‘family’ business
- Hosemann to launch crowd funding program
- CFPB wants repay ability at center of new payday loan rules
- Terminal upgrade on indefinite hold at Jackson International Airport
- ALAN TURNER: Education in Mississippi – good and bad news
- JOSH MABUS: The Tao of Road House
- Answering the Bell: Interim Ole Miss law school dean well-regarded for directing hands-on clinical training