Payout

When a Working Interest Owner (WIO) elects not to participate in working interest activities proposed by the Operator or is Force Pooled, the Operator will carry non-consent interest and track a payout. Once non-consent WIO's share of revenue exceeds its expenditures, including the contractually allowed penalties, non-consent WIO resumes normal ownership.

While a well is in payout, non-consent or force pooled owners are entitled to receive a payout statement in order to track the status and balance of the well.

Quarterly Payout Statements are prepared in the following scenarios:

1. When interest owners elect not to participate in working interest activities and are non-consent in a well
2. When interest owners do not reply to an election and are deemed non-consent
3. When interest owners are force pooled or are additional interest owners