Royalty Owners

PDC Energy (“PDC”) is a well-respected oil and gas company with a proven track record of safely drilling, completing, and operating oil and natural gas wells since 1969. As a mid-sized company, PDC has a dedicated team of professionals committed to efficient and responsible operations and environmental stewardship. A landowner is able to benefit from PDC’s extensive operational experience while retaining the small company relationship.

The Oil and Gas Lease: An oil and gas lease is a legal contract between a mineral owner and PDC which grants PDC the rights to drill and produce the mineral owner’s oil and natural gas. In exchange for granting PDC the right to explore for oil and natural gas, the mineral owner may be provided an upfront payment (bonus payment) and a royalty percentage of future production.

The Leasing Process: Generally, once an oil and gas lease has been signed, PDC works to confirm the legal title of the owner’s minerals. This title confirmation process usually takes about 90 days. After ownership is confirmed, PDC may make an upfront bonus payment to the owner if found applicable. Once the bonus payment is made, PDC’s team begins to evaluate the potential of drilling a well. Entering into a lease does not necessarily mean a well will be drilled on a property. Using horizontal drilling technology, PDC can minimize surface impacts by drilling from another surface location which could be over a mile away.

As mentioned above, the lease provides the owner with a royalty, which is a percentage of the revenue received if production is established. If natural gas and/or oil is produced from the property, the lease term will be extended for the life of the well, which could be 20 years or more. A royalty interest owner is not be responsible for any costs associated with drilling the well(s).

What to Consider: There are many factors to consider before and during the leasing process. An owner should consider who will ultimately be producing their minerals, regardless of which company offers the oil and gas lease. The operating company is the one that will actually drill and produce the minerals and they may not necessarily be the same one that offers the lease. Historically, PDC operates (drills & produces) leases that it signs with mineral owners.

A team member from PDC is available to answer all of your questions and provide you with the information you need to begin the leasing process.  Building relationships with our land and mineral owners is a  priority for PDC, and we welcome any inquiry you may have.  Visit the Royalty Contact Information page to get started.